The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

MCAN Mortgage Corporation Announces Amendment to its Dividend Reinvestment Plan

Monday, November 14, 2011

MCAN Mortgage Corporation Announces Amendment to its Dividend Reinvestment Plan10:02 EST Monday, November 14, 2011/Not for distribution to U.S. news wire services or dissemination in the United States./ 2% Discount to Apply to Purchases of Common Shares from TreasuryStock market symbolTSX: MKPTORONTO, Nov. 14, 2011 /CNW/ - MCAN Mortgage Corporation ("MCAN" or the "Company") (TSX:MKP) announced today that the Company's Dividend Reinvestment Plan (the "Plan") has been amended and restated to, among other things, provide eligible participants with a 2 per cent (2%) discount on the purchase of common shares issued from treasury.  Previously, common shares purchased from treasury under the Plan were issued by MCAN without any discount to the Average Market Price (as defined in the Plan).  The discount is effective immediately pursuant to the amended terms of the Plan (the "Amended Plan") until further notice.Under the Amended Plan, the Company continues to reserve the right to deliver common shares purchased on the open market, in which case the discount would not apply.  A complete copy of the Amended Plan is available on MCAN's website at www.mcanmortgage.com under the heading "Shareholders".The Amended Plan has been approved by the Toronto Stock Exchange.MCAN is a public company listed on the Toronto Stock Exchange under the symbol MKP and is a reporting issuer in all provinces and territories in Canada.  MCAN also qualifies as a mortgage investment corporation ("MIC") under the Income Tax Act (Canada) (the "Tax Act").The Company's primary objective is to generate a reliable stream of income by investing its corporate funds in a portfolio of mortgages (including single family residential, residential construction, non-residential construction and commercial loans), as well as other types of financial investments, loans and real estate investments.  MCAN employs leverage by issuing term deposits eligible for Canada Deposit Insurance Corporation deposit insurance up to a maximum of five times capital (on a non-consolidated tax basis) as permitted by the Tax Act.  The term deposits are sourced through a network of independent financial agents.  As a MIC, MCAN is entitled to deduct from income for tax purposes 100% of dividends, except for capital gains dividends, which are deducted at 50%.  Such dividends are received by the shareholders as interest income and capital gains dividends, respectively.For further information: MCAN Mortgage Corporation Website: www.mcanmortgage.com e-mail: mcanexecutive@mcanmortgage.com William Jandrisits President and Chief Executive Officer (416) 591-2726 Tammy Oldenburg Vice President and Chief Financial Officer (416) 847-3542