TORONTO, Sept. 12, 2013 /CNW/ - Timbercreek Mortgage Investment
Corporation (TSX: TMC) (the "Corporation") announced today that it has received shareholder approval for the
Corporation's transition (the "Transition") from the Canadian securities regulatory regime for investment funds
to the regulatory regime for non-investment fund reporting issuers (the
"Public Company Regime"), with approximately 99.9% voting in favour of the Transition at a
special meeting today, and over 50% of shareholders participating in
the vote.
"We're extremely pleased with the overwhelming support for the
Transition to the Public Company regime," said Blair Tamblyn, Chairman
of Timbercreek Mortgage Investment Corporation. "It evidences our
shareholders' desire for us to continue executing on our current
investment strategy, one that has allowed us to provide them with a
strong, inflation-hedged source of monthly income."
The Corporation's Board had determined unanimously the Transition was in
the Corporation's best interest and provides shareholders with a number
of benefits, including:
-
the Corporation's ability to continue its operation in accordance with
existing investment objectives and strategies;
-
the transition into a structure that is typically more attractive to a
broader universe of investors who do not normally invest in closed-end
investment funds;
-
the elimination of the trailer fee paid on Class A Shares will leave
more of the income generated by the Corporation at any relevant time to
be available for distribution to investors;
-
the grant of typical voting rights to shareholders; and
-
increased frequency of financial reporting, from semi-annual to
quarterly.
To implement the Transition, the Corporation intends to file articles of
amendment with the Ministry of Government Services of Ontario,
effective as of September 13, 2013 (the "Effective Date"), to amend, among other things, certain provisions of the articles of
the Corporation related to the rights attached to the existing classes
of shares, and provide for the creation of a new class of common shares
for which all existing classes of shares will be exchanged on or about
November 30, 2013. Starting from the Effective Date, the Corporation
will be subject to, and will file all continuous disclosure materials
in compliance with, the Public Company Regime requirements.
Following the Proposed Transition, the Corporation would continue to
qualify as a mortgage investment corporation ("MIC") under the Income Tax Act (Canada).
In connection with the Transition, Timbercreek Asset Management Inc.
will be appointed as the new manager of the Corporation and the
Corporation's management agreement with Timbercreek Asset Management
Ltd. will be terminated. Additionally, Messrs. Ugo Bizzarri and Andrew
Jones have been elected as additional directors of the Corporation.
Additional details of the Transition can be found in the Management
Information Circular of the Corporation that was filed on SEDAR on
August 19, 2013, and which is also available at www.timbercreek.com.
SOURCE Timbercreek Mortgage Investment Corporation
Timbercreek Asset Management:
Email: info@timbercreek.com
Telephone: 416-306-9967 x 7250
North American Toll-Free: 1-866-898-8868 x 7250