FIRM CAPITAL MORTGAGE INVESTMENT TRUST

FIRM CAPITAL MORTGAGE INVESTMENT TRUST

January 04, 2011 16:06 ET

Firm Capital Mortgage Investment Trust Completes Corporate Conversion

TORONTO, ONTARIO--(Marketwire - Jan. 4, 2011) -

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Firm Capital Mortgage Investment Trust ("the Trust") announced that the approved plan of arrangement (the "Arrangement") pursuant to which the Trust combined with Firm Capital Mortgage Investment Corporation and converted from an income trust structure to a new publicly-traded corporation named "Firm Capital Mortgage Investment Corporation" ("FCMIC"), became effective on January 1st, 2011. Common shares of FCMIC will be listed upon completion of the Arrangement and will commence trading on the Toronto Stock Exchange on January 5, 2011 under the symbol FC. FCMIC has assumed all of the covenants and obligations of the 6% Convertible Unsecured Subordinated Debentures of the Trust (the "6% Debentures") and the 5.75% Convertible Unsecured Subordinated Debentures of the Trust (the "5.75% Debentures"), each of which will also commence trading on the Toronto Stock Exchange on January 5, 2011 under the symbol FC.DB and FC.DB.A, respectively.

Under the Arrangement, Unitholders of the Trust will receive, for each unit of the Trust held, one common share of FCMIC for an aggregate of 14,377,331 common shares in FCMIC. After the completion of the Arrangement, FCMIC is expected to implement a dividend policy for 2011 pursuant to which it intends to initially pay a monthly dividend ( generally treated as interest income in the hands of the shareholder) of $0.078 ($0.936 per annum) per FCMIC Share, commencing in February 2011.

The 6% Debentures and 5.75% Debentures will be convertible into common shares of FCMIC, with respect to the 6% Debentures, at a price of $11.75 per share, being a rate of approximately 85.1064 common shares per $1,000 principal amount of 6% Debentures, and, with respect to the 5.75% Debentures, at a price of $15.90 per share, being a rate of approximately 62.8931 common shares per $1,000 principal amount of 5.75% Debentures.

The details of the Arrangement and the adjustment to the share conversion ratio are further described in the management information circular of the Trust dated October 21, 2010.

All the members of the board of trustees and the senior officers of the Trust will remain directors and officers of FCMIC.

About FCMIC

FCMIC, 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. FCMIC's investment objective is the preservation of shareholders' equity, while providing shareholders with a stable stream of monthly distributions from investments. FCMIC 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 FCMIC are outlined in the Financial Statements and the related Management Discussion and Analysis of the Trust, available on the SEDAR website at www.sedar.com.

Contact Information

  • Firm Capital Mortgage Investment Corporation
    Eli Dadouch
    President & Chief Executive Officer
    (416) 635-0221
    www.firmcapital.com