Atrium Mortgage Investment Corporation to Commence Trading on the Toronto Stock Exchange
Toronto, Ontario--(Newsfile Corp. - August 31, 2012) - Atrium Mortgage Investment Corporation (TSX: AI) ("Atrium") is pleased to announce that it received a receipt for its non-offering (final) prospectus on August 29, 2012 and Atrium's common shares ("Common Shares") will commence trading on the Toronto Stock Exchange, at the market open, on September 4, 2012 under the symbol "AI". The non-offering (final) prospectus of Atrium can be obtained at www.sedar.com.
As a mortgage investment corporation, Atrium is a non-bank provider of residential and commercial real estate finance. Atrium was created in 2001 to fill the mortgage lending gap caused by the limited number of financial institutions operating in Canada. Atrium lends 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 Atrium's formation and has grown Atrium's business to a mortgage portfolio aggregating $165.7 million at June 30, 2012. CMCC has been in the business of originating and underwriting mortgage loans for over 19 years and servicing mortgage loans for over 13 years.
The board of directors of Atrium has adopted a new dividend policy, effective August 29, 2012, pursuant to which Atrium intends to make monthly cash distributions by way of dividends to holders of Common Shares of record on the close of business on the last business day of each month. The dividend policy provides for a monthly dividend initially set at $0.06667 per Common Share per month ($0.80 per annum) to be paid within 30 days after the dividend record date. In addition, the dividend policy provides that there may be an additional (thirteenth) special dividend to holders of Common Shares of record on December 31 of each year payable within 90 days of the dividend record date. For each year ending December 31, Atrium intends to pay a special dividend equal to Atrium's taxable income for that fiscal year and capital gains dividends equal to twice Atrium's taxable capital gains for that fiscal year, less dividends previously declared for that fiscal year. The terms of the new dividend policy, including determining a record date and the amount of any dividend, are subject to change at the discretion of Atrium's board of directors.
As Atrium's previous dividend policy provided for quarterly dividends, the new dividend policy provides that the first dividend, if and when declared under the new dividend policy, would be in respect of the period beginning on July 1, 2012 and ending on September 30, 2012, with the intended amount of such dividend being $0.20 per Common Share and such dividend, if declared, expected to be made to holders of Common Shares of record at the close of business on September 28, 2012. The foregoing dividend remains subject to being approved by Atrium's board of directors.
Effective August 29, 2012, Atrium has also implemented a new Dividend Reinvestment Plan ("DRIP") that is available to its shareholders. The Offering Circular describing the DRIP may be obtained from Atrium's agent under the DRIP, Computershare Trust Company of Canada, by calling 1-800-564-6253 or by visiting the agent's self-service web portal, Investor Centre, located at www.computershare.com. The former Dividend Reinvestment Plan of Atrium has been terminated.
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 looking for 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 nature of our investments; risks related to mortgage defaults, foreclosure and related costs; reliance on Atrium's manager; environmental matters associated with our business; availability of investments; potential conflicts of interest; borrowing risks; limited sources of borrowing; risks related to the renewal of mortgages; the composition of the mortgage portfolio; subordinated and subsequent debt financing; ability to manage growth; changes in legislation; qualification as a mortgage investment corporation; and such other risks as are described in Atrium's non-offering (final) prospectus dated August 24, 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.
For further information, please contact:
Atrium Mortgage Investment Corporation
Robert G. Goodall
President and Chief Executive Officer