TORONTO, June 20, 2022 (GLOBE NEWSWIRE) — ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”) announced today that none of its 5-year Cumulative Minimum Rate Reset Preferred Shares, Series C (the “Series C Shares”) (TSX : ECN.PR.C) will be converted into Cumulative Floating Rate Preferred Shares, Series D of the Company (the “Series D Shares”).
On June 3, 2022, ECN Capital informed holders of Series C Shares that they could elect to convert their Series C Shares into Series D Shares, subject to the Series C Share Terms and Conditions. these conditions is that after the conversion there are at least 500,000 Series D Shares outstanding, otherwise no Series C Shares will be converted.
As of 5:00 p.m. (Toronto time) on June 17, 2022, being the end of the period during which holders of Series C Shares could elect to convert their Series C Shares into Series D Shares, the conversion elections in Series D Shares were received in respect of only 15,582 of the 3,712,400 Series C Shares outstanding. Accordingly, the Series D Share conversion condition is not satisfied and no Series C Shares will be converted into Series D Shares. All holders of Series C Shares will continue to hold Series C Shares.
Holders of Series C shares will have the option to re-convert their shares on June 30, 2027, and then every five years thereafter as long as the Series C shares remain outstanding. Subject to certain conditions described in the Company’s prospectus supplement dated May 17, 2017 relating to the issuance of the Series C Shares, the Company may redeem the Series C Shares, in whole or in part, on June 30, 2027 and every five years thereafter.
As previously announced, for the five-year period from June 30, 2022 inclusive to June 30, 2027 exclusively, the fixed annual dividend rate for the Series C shares has been set at 7.937%, payable quarterly on the last calendar day of March, June, September and December of each year if, as and when dividends are declared by the board of directors of the Company.
About ECN Capital Corp. With assets under management and advice of US$31 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American banks, credit unions, life insurance companies, pension funds and investment funds (collectively our “Partners”). ECN Capital creates, manages and advises credit assets on behalf of its partners, in particular secured loan portfolios and credit card portfolios. Our partners seek high quality assets to match their deposits or other liabilities. These services are offered through three operating companies: Triad Financial Services, Source One Financial Services and The Kessler Group.
Contact: John Wimsatt 561-389-2334 [email protected]
Forward-Looking Statements This press release contains forward-looking statements regarding ECN Capital and its business. These statements are based on the current expectations and views of future events of the management of ECN Capital. In some instances, forward-looking statements may be identified by words or phrases such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, ” potential”, “estimate”, “believe” or the negative form of these terms, or other similar expressions intended to identify forward-looking statements, including, among other things, conversions, redemptions and future dividends on the shares of series C. The forward-looking events and circumstances discussed in this release may not occur and may differ materially due to known and unknown risk factors and uncertainties affecting ECN Capital, including financial industry risks, economic factors and many other factors beyond control. of ECN Capital. No forward-looking statement can be guaranteed. Forward-looking statements and information, by their nature, are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or the results of the industry, are materially different from future results, performance or performance. achievements expressed or implied by such forward-looking statements or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks and assumptions associated with such forward-looking statements or information can be found in ECN Capital’s MD&A for the year ended December 31, 2021 and 2021 Annual Information Form dated March 30, 2022 which have been filed on SEDAR and can be viewed at www.sedar.com. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date they are made, and ECN Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether whether as a result of new information, future events or otherwise.
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