MCAN Mortgage Corporation Announces Receipt of OSFI Approval of Arrangement, Resignation of CFO and Appointment of New CFO
TORONTO, June 21, 2013 /CNW/ - MCAN Mortgage Corporation ("MCAN", the "Company" or "we") announced that further to the previously announced acquisition of all of the issued and outstanding common shares of Xceed Mortgage Corporation ("Xceed") by way of a statutory plan of arrangement (the "Arrangement"), the Company has received approval of the Arrangement from the Office of the Superintendent of Financial Institutions Canada. If all other conditions precedent to the Arrangement are satisfied or waived, the Company expects that the Arrangement will be completed on or before July 4, 2013.
MCAN also announced today that Tammy Oldenburg has provided notice to the Company of her resignation as Vice President and Chief Financial Officer. Ms. Oldenburg has been with the Company since 2002, and has acted in the capacity of Vice President and Chief Financial Officer since 2006. Ms. Oldenburg will continue in her current role for a transitional period to August 30, 2013. The Company would like to thank Ms. Oldenburg for her years of dedication and many contributions to the Company and wishes her continued success in her future endeavours.
MCAN also announced today the appointment of Jeffrey Bouganim as MCAN's new Vice President effective upon the successful completion of the Arrangement and as Chief Financial Officer effective August 31, 2013.
Mr. Bouganim is currently the CFO of Xceed. Prior to joining Xceed in 2010, Mr. Bouganim served as CFO for a Schedule I Chartered Bank in Canada and prior to that, Mr. Bouganim was the CFO of the brokerage and capital markets operations of another Schedule I Chartered Bank. Mr. Bouganim is a Chartered Accountant and also holds a Bachelor of Business Administration from York University.
"We would like to extend a warm welcome to Mr. Bouganim in this important role, and we look forward to working with him towards the successful integration of the Xceed and MCAN businesses" said William Jandrisits. "Mr. Bouganim brings significant experience and expertise to MCAN with many years in mortgage lending and the financial services industry."
This press release may contain forward-looking statements, including statements regarding the proposed acquisition by MCAN of all of the issued and outstanding shares of Xceed. These forward-looking statements can generally be identified as such because of the context of the statements and often include words such as MCAN "believes", "anticipates", "expects", "plans", "estimates" or words of a similar nature. These statements are based on current expectations, and are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include legislative or regulatory developments, competition, technology change, global market activity, interest rates, changes in government and economic policy and general economic conditions in geographic areas where MCAN operates. Reference is made to the risk factors disclosed in MCAN's Annual Information Form dated March 26, 2013 which are incorporated herein by reference. These and other factors should be considered carefully and undue reliance should not be placed on MCAN's forward-looking statements. Subject to applicable securities law requirements, MCAN does not undertake to update any forward-looking statements.
MCAN is a public company listed on the TSX 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").
MCAN'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 ("CDIC") 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.
MCAN also participates in the Canada Mortgage Bonds program, and other securitizations of insured mortgages.
SOURCE MCAN Mortgage Corporation