Builders Capital Mortgage Corp. Announces Closing of Rights Offering

Calgary, Alberta--(Newsfile Corp. - November 29, 2022) - Builders Capital Mortgage Corp. (TSXV: BCF) (the "Company") is pleased to announce the successful completion of its previously announced rights offering (the "Rights Offering") to eligible holders of its Class A Non-Voting Common Shares (the "Class A Shares") which expired at 5:00 pm (Toronto time) on November 25, 2022.

Upon closing of the Rights Offering, the Company issued 247,501 Class A Shares at a price of $9.30 for aggregate gross proceeds of $2,301,759. 184,409 Class A Shares were issued under the basic subscription privilege and 63,092 were issued under the additional subscription privilege. Pursuant to the terms of the Rights Offering, each eligible shareholder was entitled to subscribe for one Class A Share for every 3 rights (the "Rights") held by such shareholder.

Following the completion of the Rights Offering, the Company has 2,250,372 Class A Shares issued and outstanding. The Rights were halted from trading on the TSX Venture Exchange ("TSXV") as of 12 noon (Toronto time) on November 25, 2022. The Rights Offering remains subject to the final acceptance of the TSXV.

The Company intends to use all of the proceeds, less offering expenses, to fund the Company's mortgage lending business.

CEO Sandy Loutitt said, "We are pleased with the success of this capital raise and with the support shown to us by existing shareholders. We are committed to continuing to expand our lending portfolio while offering reliable dividends to our shareholders."

The Class A Shares issuable upon exercise of the Rights have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and accordingly, the Rights and the Class A Shares were not being publicly offered for sale in the "United States" or to "U.S. persons" (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. There shall be no sale of the securities in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or a sale would be unlawful.

For further information, please contact:

John Strangway, CPA, CA 
Chief Financial Officer 
Telephone: (403) 685-9888

Builders Capital Mortgage Corp.
Suite 260, 1414 - 8th Street SW
Calgary, Alberta T2R 1J6

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information can be identified by words such as: "expect," "intend," "plan," "seek," "believe," "estimate," "future," "likely," "may," "should," "will" and similar forward-looking language. The expected proceeds to be raised under the Rights Offering and the use thereof constitutes forward-looking information. The forward-looking information contained in this news release is based on a number of assumptions which we believe to be reasonable, including assumptions relating to the completion of the Rights Offering and the timing thereof, the amount of proceeds raised, and the expected use of proceeds from the Rights Offering. Forward-looking information entails various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking information. Risks that could cause actual results to differ materially from those expressed or implied in the forward-looking information contained in this press release include, but are not limited to, that shareholders will not exercise all or any portion of the Rights, that the Company may not be able to find a suitable use of the proceeds of the Rights Offering, the level of dilution that will be experienced by shareholders who do not exercise all or a portion of their Rights, failure to complete or a delay in the Rights Offering for any other reason, the lack of a trading market for the Rights developing and the trading price of the Class A Shares following completion of the offering. In addition, general risks relating to capital markets, economic conditions, regulatory changes, as well as the operations of our business may also cause actual results to differ materially from those expressed or implied in such forward-looking information. Forward-looking information is not a guarantee of future performance, and management's assumptions upon which such forward-looking information are based may prove to be incorrect. Investors are cautioned not to place undue reliance on any forward-looking information contained herein. The Company disclaims any obligation to update or revise any forward-looking information contained in this news release, whether as a result of new information, future events or otherwise, except to the extent required by law.

NOT FOR DISTRIBUTI0N OR DISSEMINATI0N INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/146098