Toronto Stock Exchange: MTG
TORONTO, Aug. 7, 2013 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (the " Corporation") provided today an update on its proposed transition (the " Proposed Transition") from the Canadian securities regulatory regime for investment funds (the " Investment Fund Regime") to the regulatory regime for non-investment fund reporting issuers (the " Public Company Regime").
The board of directors of the Corporation (the " Board") has previously called a special meeting of all shareholders (the " Special Meeting") to, among other things, consider approving the Proposed Transition. This decision is a pro-active response to the Canadian Securities Administrators' (" CSA") proposed regulatory changes to mortgage investment rules governing non-redeemable investment funds published on March 27, 2013 (the " Proposed Regulatory Change"). The Proposed Regulatory Change, if implemented, will impact issuers such as the Corporation that are classified as investment funds pursuant to Canadian securities laws. Among the proposed changes is a new restriction prohibiting any investment fund from investing in mortgages other than mortgages that are fully and unconditionally guaranteed by the government of Canada, the government of a province or territory of Canada or by an agency of such government (" Guaranteed Mortgages").
Since inception, the Corporation has successfully generated stable, monthly distributions as well as a stable net asset value for its investors by maintaining a diversified portfolio of shorter term, customized first mortgage loans to experienced borrowers. In that context, the Board believes that it is in the best interest of the Corporation and its shareholders to continue the Corporation's current investment objectives and strategy under the Public Company Regime, to avoid the potential restrictions to the business of the Corporation if the Proposed Regulatory Change is implemented.