Atrium Mortgage Investment Corporation Announces $30 Million Public Offering of Common Shares
March 13 2018 - 4:37PM
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Atrium Mortgage Investment Corporation (TSX:AI) (TSX:AI.DB)
(TSX:AI.DB.A) (TSX:AI.DB.B) (TSX:AI.DB.C) (“Atrium”) announced
today that it has entered into an agreement with a syndicate of
underwriters bookrun by TD Securities Inc. and RBC Capital Markets
and co-led by CIBC Capital Markets, pursuant to which the
underwriters will purchase 2,400,000 common shares (the
“Shares”) of Atrium at a price of $12.50 per Share (the “Issue
Price”) for gross proceeds of $30,000,000. Atrium has also granted
to the underwriters an over-allotment option to purchase up to an
additional 360,000 Shares at the Issue Price, exercisable in
whole or in part at any time for a period of up to 30 days
following closing of the offering, to cover over-allotments. If the
over-allotment option is exercised in full, the gross proceeds of
the offering will total $34,500,000.
Atrium will use the net proceeds of the offering
to fund current mortgage loan opportunities and/or to repay
existing indebtedness under its revolving operating credit
facility, which will then be available to be drawn, as required,
for general corporate purposes, particularly funding future
mortgage loan opportunities.
The offering is expected to close on or about
March 28, 2018 and is subject to certain conditions including, but
not limited to, the receipt of all necessary approvals, including
the approval of the Toronto Stock Exchange.
A prospectus supplement to Atrium's short form
base shelf prospectus dated October 10, 2017 will be filed by no
later than March 15, 2018 with the securities regulatory
authorities in all provinces of Canada, except Québec. No
securities regulatory authority has either approved or disapproved
of the contents of this news release. The securities being offered
have not been, and will not be, registered under the United States
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the United States unless an
exemption from registration is available. This news release is for
information purposes only and does not constitute an offer to sell
or a solicitation of an offer to buy any securities of Atrium in
any jurisdiction.
About Atrium
Canada’s Premier Non-Bank
Lender™
Atrium is a non-bank provider of residential and
commercial mortgages that lends in major urban centres in Canada
where the stability and liquidity of real estate are high. Atrium’s
objectives are to provide its shareholders with stable and secure
dividends and preserve shareholders’ equity by lending within
conservative risk parameters.
Atrium is a Mortgage Investment Corporation
(MIC) as defined in the Income Tax Act (Canada), so is not taxed on
income provided that its taxable income is paid to its shareholders
in the form of dividends within 90 days after December 31 each
year. Such dividends are generally treated by shareholders as
interest income, so that each shareholder is in the same position
as if the mortgage investments made by the company had been made
directly by the shareholder.
For further information, please refer to
regulatory filings available at www.sedar.com or Atrium’s website
at www.atriummic.com.
Forward-Looking Statements This
news release contains forward-looking statements. Much of this
information can be identified by words such as “expect to,”
“expected,” “will,” “estimated” or similar expressions suggesting
future outcomes or events. Atrium believes the expectations
reflected in such forward-looking statements are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking statements should not be unduly
relied upon.
Forward-looking statements are based on current
information and expectations that involve a number of risks and
uncertainties, which could cause actual results or events to differ
materially from those anticipated. These risks include, but are not
limited to, risks associated with the ability to satisfy
regulatory, stock exchange and commercial closing conditions of the
offering, the uncertainty associated with accessing capital markets
and the risks related to Atrium’s business, including those
identified in Atrium’s annual information form for the year ended
December 31, 2017 under the heading “Risk Factors” (a copy of which
may be obtained at www.sedar.com). Forward-looking statements
contained in this news release are made as of the date hereof and
are subject to change. All forward-looking statements in this news
release are qualified by these cautionary statements. Except as
required by applicable law, Atrium undertakes no obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise.
For further information, please contact |
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Robert G.
Goodall |
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Jennifer
Scoffield |
President and
Chief Executive Officer |
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Chief
Financial Officer |
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(416)
867-1053 |
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info@atriummic.com |
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www.atriummic.com |
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