Firm Capital Mortgage Investment Corporation Announces Normal Course Issuer Bid
Firm Capital Mortgage Investment Corporation (the "Corporation") has received acceptance from the Toronto Stock Exchange (TSX) for its notice to initiate a normal course issuer bid (NCIB) concerning its outstanding common shares. The Corporation has the intention to purchase up to 3,356,287 common shares, representing 10% of the public float, through the facilities of the TSX and/or alternative Canadian Trading Systems. The NCIB will be in effect from October 11, 2023, to October 10, 2024. The Corporation will acquire the common shares at the market price at the time of acquisition, and all purchased shares will be cancelled.
Purpose of the NCIB
The Corporation may make purchases under the NCIB through open market transactions, subject to the determination of senior management. The decision to engage in the NCIB reflects the Corporation's belief that the market price of its common shares is attractive and that such purchases would be in the best interests of the Corporation and its shareholders.
About Firm Capital Mortgage Investment Corporation
Firm Capital Mortgage Investment Corporation, through its mortgage banker, Firm Capital Corporation, provides residential and commercial short-term bridge and conventional real estate financing. The Corporation's investment objective is to preserve shareholders' equity while offering a stable stream of monthly dividends. By investing in niche markets underserved by large lending institutions, the Corporation builds a diversified mortgage portfolio that generates stable returns for shareholders. As a Mortgage Investment Corporation (MIC), the Corporation is not taxed on income as long as it is distributed to shareholders within 90 days after December 31 each year.
In conclusion, the normal course issuer bid initiated by Firm Capital Mortgage Investment Corporation presents an opportunity for the Corporation to repurchase common shares and potentially enhance shareholder value. The Corporation's focus on niche markets and its commitment to providing stable returns demonstrate its strategic approach to mortgage investment.
Implications of Firm Capital's Normal Course Issuer Bid for New Businesses
The recent announcement by Firm Capital Mortgage Investment Corporation about its normal course issuer bid (NCIB) offers critical insights for new businesses, particularly those in the financial sector. The Corporation's strategic decision to repurchase its common shares demonstrates a proactive approach to enhancing shareholder value, which is a key consideration for any business.
For new businesses, this move underscores the importance of monitoring market conditions and making strategic decisions to optimize shareholder value. The Corporation's belief that the market price of its shares is attractive enough to warrant repurchasing indicates a keen understanding of market dynamics and a commitment to acting in the best interests of its shareholders.
Moreover, Firm Capital's focus on niche markets and its commitment to providing stable returns highlights the importance of identifying and capitalizing on unique market opportunities. By investing in markets underserved by larger lending institutions, the Corporation has built a diversified mortgage portfolio that generates stable returns, demonstrating a successful strategy that new businesses can learn from.
In conclusion, Firm Capital's strategic approach to its NCIB and its focus on niche markets provide valuable lessons for new businesses about the importance of strategic decision-making, market awareness, and commitment to shareholder value.