Atrium Mortgage Investment Corp Secures Major $25 Million Offering
Atrium Mortgage Investment Corporation's Recent Offering
Atrium Mortgage Investment Corporation has recently taken a significant step in its financial strategy with the announcement of a planned public offering of common shares valued at $25 million. This offering includes an arrangement with a reputable syndicate of underwriters, including TD Securities Inc. and RBC Capital Markets, to purchase over two million shares at an issue price set at $11.45 per share.
Details of the Offering
The agreement specifies that Atrium will sell 2,185,000 common shares, generating gross proceeds of approximately $25 million. Additionally, there's a provision for an over-allotment option, allowing underwriters to purchase an extra 327,750 shares if needed. If this option is fully exercised, total proceeds could reach nearly $28.8 million.
Utilization of Proceeds
One of the primary uses for the net proceeds from this offering is to repay existing debts under Atrium's revolving operating credit facility, which will subsequently allow them to maintain greater liquidity for future lending opportunities. This move is anticipated to enhance the company's capacity to provide mortgages, targeting both residential and commercial sectors across major urban areas.
Timeline and Conditions for the Offering
The expected closing date for this offering is projected for early October, contingent upon obtaining necessary regulatory approvals, including that of the Toronto Stock Exchange. Leading up to this, a preliminary short form prospectus will be filed with local securities authorities, thus ensuring compliance and transparency throughout the process.
About Atrium Mortgage Investment Corporation
Atrium is recognized as Canada’s premier non-bank lender, strategically focused on residential and commercial mortgage lending within robust real estate markets. Their strategy emphasizes shareholder value through stable dividends and prudent risk management. Given its classification as a Mortgage Investment Corporation (MIC), Atrium benefits from certain tax advantages, allowing them to pass along a significant portion of their earnings to shareholders in a tax-efficient manner.
Company Leadership
Leading the company are Robert G. Goodall, Chief Executive Officer, and John Ahmad, Chief Financial Officer. Together, they are steering Atrium towards achieving its strategic goals, emphasizing growth and stability in the dynamic mortgage landscape.
Frequently Asked Questions
What is the purpose of the public offering by Atrium?
The public offering aims to generate proceeds for debt repayment and to enhance capital for future mortgage lending opportunities.
Who are the underwriters for this offering?
The offering is underwritten by a syndicate led by TD Securities Inc. and RBC Capital Markets.
When is the anticipated closing date for the offering?
The offering is expected to close in early October, subject to regulatory approvals.
What is Atrium Mortgage Investment Corporation?
Atrium is a non-bank lender specializing in residential and commercial mortgages across key urban areas in Canada.
How does Atrium benefit from its status as a Mortgage Investment Corporation?
As a MIC, Atrium avoids taxation on its income as long as dividends are distributed to shareholders within the statutory period, promoting efficient income distribution.
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