FC Firm Capital Mortgage Investment Corporation

TORONTO, Aug. 23, 2011 /CNW/ -- /NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ TSX Symbol: FC TORONTO, Aug. 23, 2011 /CNW/ - Firm Capital Mortgage Investment Corporation (the, "Corporation") (TSX: FC) today announced that it has closed its previously announced offering of $22,500,000 aggregate principal amount of 5.40% convertible unsecured subordinated debentures, due February 28, 2019 (the "Debentures"). Each Debenture is convertible into common shares at the option of the holder at a conversion price of $14.35 per share (or 69.6864 shares per $1,000 principal amount of Debentures). The Debentures are listed and posted for trading on the TSX under the symbol FC.DB.B. The offering was underwritten by a syndicate of underwriters led by TD Securities Inc. and including CIBC World Markets Inc., Dundee Securities Ltd., Desjardins Securities Inc., National Bank Financial Inc., and Macquarie Capital Markets Canada Ltd. The Corporation has also granted to the underwriters an over-allotment option, exercisable in whole or in part, at any time up to 30 days after the closing of the offering to purchase up to an additional $3,375,000 aggregate principal amount of Debentures. The net proceeds of the offering will be used to repay a portion of its indebtedness. The securities being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except in limited circumstances. About The Corporation The Corporation, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Corporation's investment objective is the preservation of Shareholders' equity, while providing Shareholders with a stable stream of monthly dividends from investments. The Corporation achieves its investment objectives through investments in selected niche markets that are under-serviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to Shareholders. Full reports of the financial results of the Corporation for the year are outlined in the audited financial statements and the related management discussion and analysis of Firm Capital, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on Firm Capital's website at www.firmcapital.com. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/23/c5491.html p Firm Capital Mortgage Investment Corporationbr/ Eli Dadouchbr/ President & Chief Executive Officerbr/ (416) 635-0221br/ a href="http://www.firmcapital.com"www.firmcapital.com/a /p

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