Builders Capital Mortgage Corp. Announces Acquisition of Initial Mortgage Portfolio, Private Placement and Conversion of Subscription Receipts to Class A Non-Voting Shares

CALGARY, ALBERTA--(Marketwired - Dec. 19, 2013) - Builders Capital Mortgage Corp. (the "Corporation") is pleased to announce that it has completed its previously announced acquisition (the "Initial Portfolio Acquisition") of certain portfolios of mortgages from two privately-held entities, Builders Capital Mortgage Investment Corp. ("BCMIC") and Builder's Capital Inc. ("BCI"), for an aggregate purchase price of approximately $22.3 million, a portion of which was satisfied through the proceeds received by the Corporation from the issuance of Class B non-voting shares ("Class B Non-Voting Shares") in the capital of the Corporation as further described below.

Concurrently with completion of the Initial Portfolio Acquisition, the Corporation completed a private placement of 972,076 Class B Non-Voting Shares at a price of $10.00 per share.

Under its initial public offering completed on December 12, 2013, the Corporation issued and sold 1,379,395 subscription receipts ("Subscription Receipts") at a price of $10.00 per Subscription Receipt (the "Offering"). As a result of completion of the Initial Portfolio Acquisition, each Subscription Receipt has been converted into one Class A non-voting share ("Class A Non-Voting Share") in the capital of the Corporation for no additional consideration and without further action by the holder. For further details of the Offering, please see the press release of the Corporation dated December 12, 2013.

The Class A Non-Voting Shares have been approved for listing on the TSX Venture Exchange ("TSXV"). Trading is expected to commence on the TSXV on or about Monday, December 23, 2013 under the symbol "BCF". For further details of the initial public offering of the Corporation, please see the press releases of the Corporation dated December 12, 2013

Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. The words "expect", "anticipate", "believe", "estimate", "may", "will", "should", "intend", "forecast", "plan", and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include information relating to timing of the commencement of trading on the TSXV.

Readers are cautioned not to place undue reliance on forward-looking information. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties that contribute to the possibility that the predicted outcome will not occur, including some of which are beyond the Corporation's control. These assumptions and risks include, but are not limited to: risks associated with mortgage lending, dependence on the Corporation's manager, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters, the ability to access sufficient capital from internal and external sources and changes in applicable law. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. See the Corporation's final prospectus dated October 25, 2013, available on SEDAR at www.sedar.com, for further description of the risks and uncertainties associated with the Corporation's business. The Corporation undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.