TORONTO, Dec. 4, 2012 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI) is pleased to report that it has closed its previously announced marketed public offering and concurrent private placement offering for gross proceeds of $50,149,000 and $4,613,708, respectively, representing total gross proceeds of $54,762,708. In connection with the public offering and concurrent private placement offering, Atrium issued 4,700,000 common shares and 432,400 common shares, respectively, at a price of $10.67 per share. Under the private placement offering, the common shares were acquired by certain directors and officers of Atrium or their associates.
"We are very pleased with the support that we received from both previous and new investors," said Rob Goodall, President and CEO of Atrium. "The proceeds from these offerings will allow us to continue to grow and provide attractive rates of return to our shareholders."
The public offering was completed by a syndicate of underwriters led by TD Securities Inc., CIBC and RBC Capital Markets, and including Scotiabank, BMO Capital Markets, Dundee Securities Ltd., National Bank Financial Inc., Canaccord Genuity Corp., Raymond James Ltd., Industrial Alliance Securities Inc. and M Partners Inc.
Atrium has granted to the underwriters an over-allotment option exercisable, in whole or in part, in their sole discretion, to purchase up to an additional 705,000 common shares at $10.67 per share (for estimated additional aggregate gross proceeds to Atrium of $7,522,350 if the over-allotment option is exercised in full) for a period of 30 days from today's closing, to cover over-allotments, if any, and for market stabilization purposes.
Atrium will use the net proceeds it received today from the offerings for general corporate purposes and to repay existing indebtedness under its revolving operating credit facility, which will then be available to be drawn, as required, for general corporate purposes, particularly funding future mortgage loan opportunities.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Atrium in any jurisdiction.
As a mortgage investment corporation, Atrium is a non-bank provider of residential and commercial real estate finance. Atrium lends primarily in major urban centres in Canada where the stability and liquidity of real estate are at the highest levels. Canadian Mortgage Capital Corporation ("CMCC") is responsible for originating, underwriting, servicing and syndicating Atrium's mortgage loans. CMCC has been Atrium's exclusive manager since its formation and has grown Atrium's business to a mortgage portfolio of approximately $190 million as at September 30, 2012. CMCC has been in the business of originating and underwriting mortgage loans for over 18 years and servicing mortgage loans for over 13 years.
Certain information included in this news release is forward-looking, within the meaning of applicable securities laws. Much of this information can be identified by words such as "believe," "expects," "expected," "will," "intends," "projects," "anticipates," "estimates," "continues" or similar expressions suggesting future outcomes or events. Atrium believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to, risks associated with the uncertainty associated with accessing capital markets and the risks related to Atrium's business, including those identified in Atrium's short form prospectus dated November 22, 2012 under the heading "Risk Factors" (a copy of which can be obtained at www.sedar.com). Reference should be made to this additional information prior to making any investment decision. Forward looking statements contained in this news release are made as of the date hereof and are subject to change. All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, Atrium undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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