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TORONTO, June 18, 2021 (GLOBE NEWSWIRE) — Timbercreek Financial Corp. (TSX: TF) (“Timbercreek Financial” or the “Company”) today announced that it has established an at-the-market equity program (the “ATM Program”) that allows the Company to issue common shares from treasury (“Common Shares”) having an aggregate gross sales amount of up to $90 million (the “Maximum Amount”) to the public from time to time, at the Company’s discretion. The ATM Program is being established pursuant to a prospectus supplement, dated the date hereof (the “Prospectus Supplement”) and filed in all provinces and territories of Canada, to the base shelf prospectus dated June 10, 2021 (the “Base Shelf Prospectus” and collectively with the Prospectus Supplement, the “Prospectus”).
Sales of the Common Shares through the ATM Program will be made pursuant and subject to the terms of an equity distribution agreement dated the date hereof (the “Equity Distribution Agreement”) with National Bank Financial Inc.
Sales of the Common Shares will be made through “at-the-market distributions” as defined in National Instrument 44-102 – Shelf Distributions, including sales made directly on the Toronto Stock Exchange (the “TSX”). The Common Shares will be distributed under the ATM Program at the market prices prevailing at the time of sale, and therefore prices may vary as between purchasers and over time. The ATM Program will be activated at the Company’s discretion and will end on the earlier of the date of distribution of the Maximum Amount and July 11, 2023.
“Timbercreek Financial is fortunate to have a strong industry presence and has developed deep borrower and broker relationships that continue to provide attractive risk/return opportunities from which it maintains a strong pipeline of transactions. The Company is committed to diversifying its sources of capital to fund mortgage originations and enhanced return portfolio investments,” said Blair Tamblyn, Chief Executive Officer of Timbercreek Financial. “The ATM Program will allow the Company opportunistically to raise equity efficiently and in a manner that will be accretive to shareholders.”
The Company currently intends to use the net proceeds, if any, of the ATM Program for general investment and working capital purposes, including, if and as required, repaying amounts owing under its secured revolving credit facility. The credit facility is used for day to day working capital requirements of the Company and for other general corporate purposes, particularly the funding of mortgage loans.
The Prospectus Supplement, together with the Base Shelf Prospectus, has been filed with the securities commissions in all provinces and territories of Canada. The Prospectus contains important detailed information about the securities being offered. Before you invest, you should read the Prospectus and the other documents the Company has filed for more complete information about the Company and the ATM Program. Copies of the Equity Distribution Agreement and the Prospectus will be available under the Company’s profile at www.sedar.com.
About Timbercreek Financial
Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while targeting strong risk-adjusted returns for investors.
This news release contains forward-looking statements about Timbercreek Financial, including, but not limited to, anticipated sales of Common Shares through the ATM Program and the proposed use of proceeds from the ATM Program. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “intend”, “plan”, “seek”, “strive”, “will”, “may”, “potential” and “should” and similar expressions concerning matters that are not historical facts. By their nature, forward looking statements reflect the Company’s current views, beliefs, assumptions and intentions, and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the Company’s public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward-looking statements. The Company does not intend to nor assumes any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Chief Executive Officer