This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MCAN Mortgage Corporation To Acquire Xceed Mortgage Corporation

Stock market symbol TSX: MKP

TORONTO, March 26, 2013 /CNW/ - MCAN Mortgage Corporation ("MCAN", the "Company" or "we") announced today that it has entered into a definitive agreement (the "Arrangement Agreement") to acquire all of the issued and outstanding common shares of Xceed Mortgage Corporation ("Xceed") for $1.75 per share, for a total consideration of approximately $53.0 million (the "Transaction") paid with a combination of cash and common shares of MCAN.  The Transaction will be effected pursuant to a plan of arrangement under Section 182 of the Business Corporations Act ( Ontario) and is expected to close within approximately 90 days.  The Transaction is subject to Xceed shareholder approval, court and regulatory approvals and other closing conditions as described below.

Under the terms of the Arrangement Agreement, Xceed shareholders will, for each share held, receive at their election, subject to adjustment: (i) 0.118 MCAN common shares or (ii) $1.75 in cash, or a combination thereof, subject to a maximum of $30.3 million in aggregate cash being paid.  The consideration represents a premium of 16.67% to Xceed's closing price per share on the Toronto Stock Exchange (the "TSX") as at March 25, 2013 and a 7.03% premium to Xceed's 30-day volume weighted average price per share as at close of markets on March 25, 2013.  Assuming the maximum cash consideration is elected to be received by the Xceed shareholders, the equity component of the purchase price will be approximately $22.7 million and, upon completion of the Transaction, existing Xceed shareholders will own approximately 7.54% of MCAN on a fully diluted basis.

This Transaction provides MCAN with a unique opportunity to acquire an established mortgage origination and underwriting platform that is expected to deliver incremental asset growth and potential for increased income for MCAN.  Cash and other liquid assets, including Canada Mortgage and Housing Corporation ("CMHC") insured mortgages, are expected to represent a significant proportion of Xceed's assets at closing. In addition, the acquisition provides new equity for MCAN on a cost effective basis, providing it with capacity to achieve its growth objectives.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs