Builders Capital Mortgage Corp.
TSX VENTURE : BCF

Builders Capital Mortgage Corp.

June 09, 2016 14:39 ET

Builders Capital Mortgage Corp. Announces Implementation of Dividend Reinvestment Plan

CALGARY, ALBERTA--(Marketwired - June 9, 2016) - Builders Capital Mortgage Corp. (the "Company") (TSX VENTURE:BCF) is pleased to announce that it has implemented a dividend reinvestment plan (the "Plan"). Shareholders who are residents of Canada may elect to participate in the Plan commencing with the dividend anticipated to be paid on July 31, 2016 to shareholders of record as of June 30, 2016. Participation in the Plan is optional and will not affect shareholders' cash dividends unless they elect to participate in the Plan. Quarterly dividends are only payable as and when declared by Builders' Board of Directors and there is no entitlement to any dividend prior thereto.

The following is a summary of the key attributes of the Plan. A complete copy of the Plan is available on Builders' website at www.builderscapital.ca . Shareholders should carefully read the complete text of the Plan and consult their qualified financial advisor before making any decisions regarding their participation in the Plan.

The Plan allows shareholders to reinvest their cash dividends into additional Class A Non-Voting Shares ("Shares") which will either be issued from treasury at a fixed value of $10.00 per Share or purchased in the open market. No more than an aggregate maximum of 136,789 Shares, being equal to 10% of the current issued and outstanding Shares of Builders, may be issued from treasury pursuant to the Plan without public disclosure and the approval of the Board of Builders and the TSX Venture Exchange. No commissions, service charges or brokerage fees are payable by shareholders who elect to participate in the Plan.

To participate in the Plan, registered shareholders must deliver a properly completed Plan enrolment form to Computer Trust Company of Canada (the "Agent") not less than five business days before a dividend distribution. Registered shareholders who wish to participate in the Plan for the anticipated July 31, 2016 dividend must deliver a Plan enrolment form to the Agent no later than 5:00 p.m. Mountain Time on Wednesday, June 22, 2016. Non-registered beneficial shareholders who wish to participate in the Plan should contact the broker, investment dealer, financial institution or other nominee who holds their common shares to inquire about the applicable enrolment deadline and to request enrolment in the Plan.

Participation in the Plan does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in common shares under the Plan. Shareholders should consult their tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.

This press release is not an offer to sell or a solicitation of an offer of securities.

About Builders Capital

Builders Capital is a mortgage lender providing short-term course of construction financing to builders of residential, wood-frame properties in Western Canada. The company was formed on March 28, 2013 but did not commence active operations until December 12, 2013, on the closing of its initial public offering, following which it acquired a portfolio of mortgages from two predecessor companies. Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and steady distributions to shareholders while remaining focused on capital preservation and staying within the criteria mandated for mortgage investment corporations, as defined in the Income Tax Act.

As a MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.

Cautionary Statement on Forward-Looking Information

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The word "will" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in interest rates and the price of real estate; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada; and our ability to successfully complete transactions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements.

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.

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