Toronto, Ontario – February 26, 2020. MCAN Mortgage Corporation (“MCAN”, the “Company” or “we”) (TSX: “MKP”) announced today that Ian Sutherland will step down as Chair of the Board (the “Chair”), however will remain on the Board of Directors (the “Board”) to facilitate Board renewal and transition. Ian has held the position of Chair since 2010. In previous years he has also served in various management and Board roles. As a founding partner, Ian’s leadership and guidance has advanced the Company’s strategy and contributed to its success and growth over the past 30 years.
The Board also announced today that Derek Sutherland has been appointed as Chair. Derek brings with him 12 years of experience with MCAN in management and since 2017, as a Director. Derek previously held various positions including Chief Risk Officer at MCAN, and is a CPA, CBV and a Corporate Director (ICD.D). Derek also serves on the Board of Directors of a private company regulated by the Office of the Superintendent of Financial Institutions (“OSFI”).
“I am honoured by the Board’s confidence and support to continue the success achieved under Ian’s leadership. MCAN has a strong professional Board and management team. I look forward to working with both the Board and management to further enhance MCAN’s performance against our stated vision and objectives”, said Derek Sutherland. “On behalf of the Board, I offer Ian our thanks for guiding MCAN over the years while laying the foundation for continued success of the company that he has been an integral part of founding and developing.”
The Company also announced Susan Doré and Verna Cuthbert will be retiring and not standing for re-election at the Annual General Meeting of Shareholders. Susan Doré has been a Director of MCAN since 2010 and was previously a member of management of the Company and its predecessors serving for a total of 33 years. Her contributions and commitment to the Company have been instrumental to our success. Verna has served on the Board since 2013, providing the benefits of her legal experience and risk and general advice during her tenure.
“I have had the pleasure of working with Ian since joining the Board in 2011 and benefitted immensely from his support and guidance over the past year” said Karen Weaver, President and CEO. “Susan and Verna have been excellent business advisors for the Company and on behalf of the board and management team we wish them well in their retirement. I look forward to continuing our work with all Board members in guiding MCAN in the future.”
MCAN is a public company listed on the Toronto Stock Exchange under the symbol MKP and is a reporting issuer in all provinces and territories in Canada. MCAN also qualifies as a mortgage investment corporation (“MIC”) under the Income Tax Act (Canada) (the “Tax Act”).
The Company’s primary objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including single family residential, residential construction, non-residential construction and commercial loans, as well as other types of securities, loans and real estate investments. MCAN employs leverage by issuing term deposits that are eligible for Canada Deposit Insurance Corporation deposit insurance and are sourced through a network of independent financial agents. We manage our capital and asset balances based on the regulations and limits of the Tax Act, the Trust and Loan Companies Act (Canada) and OSFI.
As a MIC, we are entitled to deduct the dividends that we pay to shareholders from our taxable income. Regular dividends are taxed as interest income to shareholders. We are also able to pay capital gains dividends, which would be taxed as capital gains to shareholders for income tax purposes. Dividends paid to foreign investors may be subject to withholding taxes. Additionally, to continue to meet the MIC criteria, 67% of our non-consolidated assets measured on a tax basis are required to be held in cash or cash equivalents and residential mortgages.
MCAN’s wholly-owned subsidiary, XMC Mortgage Corporation, is an originator of single family residential mortgage products across Canada.
For further information, please contact:
MCAN Mortgage Corporation
President and Chief Executive Officer
Vice President and Chief Financial Officer
Chair, Board of Directors