GC-Global Capital Corp.

GC-Global Capital Corp.

November 24, 2011 09:15 ET

GC-Global Capital Corp. Announces Purchase of 8% Preferred Shares of Marathon Mortgage Corporation

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2011) - GC-Global Capital Corp. (TSX VENTURE:GDE.A) ("Global Capital") is pleased to announce that it subscribed for and purchased 2,750,000 Preferred Shares and 2,138,890 Common Shares of Marathon Mortgage Corporation ("MMC") for a total subscription price of $2,750,213.89. MMC has been established to build a residential mortgage origination, sales and servicing business and will be applying for CMHC approval to commence mortgage origination and servicing shortly. MMC brings together the former management team of First Marathon Mortgage Corp. which at the time of its sale in 2002 was servicing approximately $4 Billion in mortgages.

Through the MMC management team's alliances with major financial institutions and mortgage brokerage firms, MMC's goal is to become one of the most reliable residential and commercial mortgage lenders in Canada, providing competitive mortgage products, competitive mortgage interest rates, competitive mortgage terms and reliable service through quick turnaround service to its borrowers and broker partners. MMC will underwrite prime-insured and conventional residential and commercial mortgages that will be sold to mortgage investors, such as banks or trust companies, co-operatives, securities firms and insurance companies. MMC expects to retain the majority of servicing for these mortgages.

MMC's Board of Directors includes:

-Stuart Henry, Chairman of MMC
-Harold Kennedy, President and CEO of MMC
-Michael MacKenzie
-Hank Cunningham
-Chris Kauffman

Global Capital's acquisition of MMC Preferred and Common Shares was the lead order in a financing of MMC which raised $7,801,000. The Preferred Shares are expected to yield a cumulative annual dividend equal to 8% of the issue price and the Preferred Shares are also redeemable at a redemption price equal to the issue price. It is expected that MMC will redeem all of the Preferred Shares within four years.

As consideration for being the lead order on the MMC financing, Global negotiated and entered into a Put/Call arrangement pursuant to which Global may purchase, or MMC may require Global to purchase, an additional 1.2 million Preferred Shares and 933,333 Common Shares for an aggregate purchase price of $1,200,093. The Put/Call shall remain available for exercise for a period of five years, however, MMC cannot exercise their Put rights until after one year from the date of closing of the MMC financing.

Global Capital's CEO, Jason Ewart, commented "This transaction represents a significant investment for Global Capital. Given the track record of their previous company, First Marathon Mortgage Corp., we believe that this management team can once again create a leading national mortgage company."

Gord Ewart, Global Capital's Chairman, is the registered holder of 620,000 Common Shares of MMC which he acquired independently at the Common Share issue price.

About Global Capital

Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, visit Global's website at www.gcglobalcapital.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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