GC-Global Capital Corp. Announces The Results of Its Special Shareholders Meeting to Approve The Spin-Out of Its Real Estate Investment Subsidiary
Toronto, Ontario--(Newsfile Corp. - December 24, 2013) - GC-Global Capital Corp. (TSXV: GDE.A) ("Global Capital") is pleased to announce that at its recent Special Shareholders meeting, it received shareholder approval to spin-out its wholly-owned subsidiary, GC Marathon Financial Corp. (“GC Marathon”), a real estate investment company, in the form of a return of capital share distribution to Global Capital’s shareholders. The core investment of GC Marathon Corp. is its shareholdings of Marathon Mortgage Corporation (“MMC”). The shares of GC Marathon will be distributed to Global Capital’s shareholders through a reduction of paid up capital.
The spin-out is intended to give Global Capital shareholders a direct interest in GC Marathon’s Canadian real estate market focused investments. The current core investment is Marathon Mortgage Corporation a residential mortgage origination, sales and servicing business. Today, Global owns 25% of MMC. MMC brings together the former management team of First Marathon Mortgage Corp. which at the time of its sale in 2002 was servicing approximately $4 Billion in mortgages. Marathon’s management team and business operations are in place and ready to ramp up operations. Through the MMC management team’s alliances with major financial institutions and mortgage brokerage firms, MMC’s goal is to become one of the most reliable residential and commercial mortgage lenders in Canada, providing competitive mortgage products, competitive mortgage interest rates, competitive mortgage terms and reliable service through quick turnaround service to its borrowers and broker partners. MMC will underwrite prime-insured and conventional residential and commercial mortgages that will be sold to mortgage investors, such as banks or trust companies, co-operatives, securities firms and insurance companies. MMC expects to retain the majority of servicing for these mortgages. In February, 2013, MMC received its CMHC (Canada Mortgage and Housing Corporation) lenders status as well as completed servicing agreements with two major Canadian financial institutions. In April, 2013 MMC received its Genworth Canada (Genworth Financial Mortgage Insurance Company Canada) lenders status. Similar to CMHC (Canada Mortgage and Housing Corporation), Genworth Canada provides mortgage default insurance to residential mortgage lenders for low down payment mortgages on one-to-four unit residential properties.
As part of the process of the spin-out transaction, GC Marathon intends to file a prospectus in Ontario to qualify the secondary distribution by Global Capital to its shareholders of all of the outstanding shares of GC Marathon Corp. Following the approval of the prospectus, GC Marathon intends to seek a public listing of its shares.
About Global Capital
Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global’s website at www.gcglobalcapital.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.