Builders Capital Mortgage Corp Announces First Closing of Bond Offering

Calgary, Alberta--(Newsfile Corp. - October 10, 2024) - Builders Capital Mortgage Corp. (TSXV: BCF) ("Builders Capital" or "the Company") had previously announced its intention to proceed with a participating bond offering (the "Bonds") to raise gross proceeds of up to $50 million closing in one or more tranches (the "Offering"), the details of which are set forth in a news release dated April 8, 2024. The net proceeds of the Offering will be used in the Company's ongoing mortgage lending business to fund or acquire short-term, residential construction mortgages in Alberta and British Columbia. The Bonds will participate on a pari passu (equal) basis with the existing shares of the Company relative to returns and risk based on capital contributed to the business of the Company, and accordingly shares and shareholders of the Company are not exposed to additional leverage risk by virtue of the Offering.

Builders Capital is pleased to announce today that it has affected the closing of its initial tranche of Bonds. The total value of this tranche is $7,250,000.00 based on subscriptions from two placees. As indicated in a previously filed material change report, one of these placees is a corporate insider.

About Builders Capital

Builders Capital is a mortgage lender providing short-term course-of-construction financing to builders of residential, wood-frame properties in Western Canada. The Company commenced active operations on December 12, 2013 on the closing of its initial public offering, whereupon it acquired a portfolio of mortgages from two predecessor companies.

Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations ("MIC") as defined in the Income Tax Act.

As an MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31^st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities legislation, including statements with respect to management's beliefs, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on estimates and assumptions that are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements contained in this news release. These include, among other things, risks associated with mortgage lending, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters and the general economic environment. The company cautions that the foregoing list is not exhaustive, as other factors could adversely affect its results, performance or achievements. Readers are cautioned against undue reliance on any forward-looking statements. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Builders Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226351