TORONTO, ONTARIO--(Marketwired - July 18, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Brompton Funds Limited (the "Manager") and MCAP Financial Corporation (together with its affiliates and subsidiaries, "MCAP") are pleased to announce that Eclipse Residential Mortgage Investment Corporation (ERM.TO) (the "Company") has completed the issuance of a further 170,000 class A shares for gross proceeds of $1.7 million pursuant to the exercise of the over-allotment option granted to the agents in connection with the Company's initial public offering. With the exercise of the over-allotment option, total gross proceeds raised by the Company pursuant to the initial public offering are approximately $40.7 million.
The investment objectives of the Company are to acquire and maintain a diversified portfolio (the "Mortgage Portfolio") comprised primarily of single family residential mortgages that seeks to preserve capital and generate sufficient income to permit the Company to pay monthly distributions to the holders of the Company's class A shares. The initial indicative distribution amount will be approximately $0.05 per class A share per month ($0.60 per annum) representing a cash distribution of 6% per annum based on the $10.00 issue price.
MCAP sources and services the Company's mortgage portfolio and provides mortgage consulting services to the Manager. MCAP and its predecessors have been originating and servicing mortgages in Canada for over 20 years. MCAP originates and services mortgages for a wide variety of major Canadian institutions seeking exposure to the Canadian mortgage market. MCAP currently services approximately $36 billion in mortgages, approximately $33.6 billion of which is invested in single family residential mortgages.
The Manager (together with its affiliates) and MCAP have each acquired $3 million of class A shares under the offering for an aggregate investment of $6 million.
The syndicate of agents for the offering was led by RBC Capital Markets, CIBC and TD Securities Inc. and included BMO Capital Markets, National Bank Financial Inc., Scotiabank, Raymond James Ltd., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Manulife Securities Incorporated, Desjardins Securities Inc. and Mackie Research Capital Corporation.
About Brompton Funds
Brompton Funds, a division of Brompton Group, is an experienced investment fund manager operating since 2002. Brompton is focused on meeting the needs of investors by offering low cost, innovative products with client friendly terms and supported by strong corporate governance.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Company's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, values may change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.