Builders Capital Mortgage Corp Announces Third Closing of Bond Offering

Executive Summary

• Builders Capital Mortgage Corp. closed the third tranche of its participating bond private placement, raising gross proceeds of $2,750,000.
• The net proceeds will be used to fund or acquire short‑term residential construction mortgages in Alberta and British Columbia, supporting the Company’s core mortgage lending business.
• The bonds are structured on a pari‑passu basis with existing equity, meaning shareholders are not exposed to additional leverage risk from this offering.

Key Details

• Offering Background: Previously announced intention to raise up to $50 million through one or more tranches of participating bonds (original release dated April 8 2024).
• Tranche Closed: Third tranche, private placement, aggregate gross proceeds $2,750,000.00.
• Subscription Base: Subscriptions received from three placees.
• Use of Proceeds: To fund or acquire short‑term residential construction mortgages in Alberta and British Columbia as part of ongoing mortgage lending operations.
• Capital Structure Impact: Bonds participate pari‑passu with existing shares on returns and risk; shareholders retain no additional leverage exposure.
• Company Description (contextual): Builders Capital is a Mortgage Investment Corporation (MIC) providing short‑term construction financing for wood‑frame residential projects in Western Canada, operating since December 12 2013.

Notable Quotes

• Sandy Loutitt, CEO: “The closing of this third tranche further strengthens our capital base, enabling us to continue delivering attractive risk‑adjusted returns to our shareholders while supporting the growth of residential construction financing in Western Canada.”