GC-Global Capital Corp. Announces Purchase of 8% Preferred Shares of Marathon Mortgage Corporation
24 November 2011 - 3:15PM
Marketwired
GC-Global Capital Corp. (TSX VENTURE:GDE.A) ("Global Capital") is
pleased to announce that it subscribed for and purchased 2,750,000
Preferred Shares and 2,138,890 Common Shares of Marathon Mortgage
Corporation ("MMC") for a total subscription price of
$2,750,213.89. MMC has been established to build a residential
mortgage origination, sales and servicing business and will be
applying for CMHC approval to commence mortgage origination and
servicing shortly. MMC brings together the former management team
of First Marathon Mortgage Corp. which at the time of its sale in
2002 was servicing approximately $4 Billion in mortgages.
Through the MMC management team's alliances with major financial
institutions and mortgage brokerage firms, MMC's goal is to become
one of the most reliable residential and commercial mortgage
lenders in Canada, providing competitive mortgage products,
competitive mortgage interest rates, competitive mortgage terms and
reliable service through quick turnaround service to its borrowers
and broker partners. MMC will underwrite prime-insured and
conventional residential and commercial mortgages that will be sold
to mortgage investors, such as banks or trust companies,
co-operatives, securities firms and insurance companies. MMC
expects to retain the majority of servicing for these
mortgages.
MMC's Board of Directors includes:
-Stuart Henry, Chairman of MMC
-Harold Kennedy, President and CEO of MMC
-Michael MacKenzie
-Hank Cunningham
-Chris Kauffman
Global Capital's acquisition of MMC Preferred and Common Shares
was the lead order in a financing of MMC which raised $7,801,000.
The Preferred Shares are expected to yield a cumulative annual
dividend equal to 8% of the issue price and the Preferred Shares
are also redeemable at a redemption price equal to the issue price.
It is expected that MMC will redeem all of the Preferred Shares
within four years.
As consideration for being the lead order on the MMC financing,
Global negotiated and entered into a Put/Call arrangement pursuant
to which Global may purchase, or MMC may require Global to
purchase, an additional 1.2 million Preferred Shares and 933,333
Common Shares for an aggregate purchase price of $1,200,093. The
Put/Call shall remain available for exercise for a period of five
years, however, MMC cannot exercise their Put rights until after
one year from the date of closing of the MMC financing.
Global Capital's CEO, Jason Ewart, commented "This transaction
represents a significant investment for Global Capital. Given the
track record of their previous company, First Marathon Mortgage
Corp., we believe that this management team can once again create a
leading national mortgage company."
Gord Ewart, Global Capital's Chairman, is the registered holder
of 620,000 Common Shares of MMC which he acquired independently at
the Common Share issue price.
About Global Capital
Global Capital is a merchant bank, which provides bridge loan
services, to companies across many industries such as oil &
gas, mining, real estate, manufacturing, retail, financial
services, technology and biotechnology. For further information,
visit Global's website at www.gcglobalcapital.ca.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein.
Contacts: GC-Global Capital Corp. Jason G. Ewart (416)
488-7760www.gcglobalcapital.ca
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