Lending – Freedominst http://freedominst.org/ Sat, 17 Jul 2021 08:31:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://freedominst.org/wp-content/uploads/2021/03/cropped-favicon-32x32.png Lending – Freedominst http://freedominst.org/ 32 32 The lender completes the transfer of ownership of the skyscraper in downtown Dallas http://freedominst.org/the-lender-completes-the-transfer-of-ownership-of-the-skyscraper-in-downtown-dallas/ http://freedominst.org/the-lender-completes-the-transfer-of-ownership-of-the-skyscraper-in-downtown-dallas/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/the-lender-completes-the-transfer-of-ownership-of-the-skyscraper-in-downtown-dallas/

New York lenders have completed their acquisition of one of Dallas’ largest skyscrapers, the 56-story Renaissance Tower.

A company organized by Square Mile Capital Group has been working to take control of the Elm Street office skyscraper since the owners defaulted on funding.

Deed documents filed with Dallas County say the change of ownership was “in consideration of the cancellation and settlement” of more than $ 100 million in debt Square Mile Capital provided for the building in 2017.

The 56-story Renaissance Tower on Elm Street – best known for its double-X lighting and decorative towers on top – is rented for less than 65%.

The 1.73 million-square-foot skyscraper was up for sale last year, but no one came forward to buy it.

Renaissance Tower has been owned since 2006 by a New York-based investment group that included Moinian Group and SMA Equities.

Square Mile Capital initiated a foreclosure procedure in December to acquire ownership of the building.

Square Mile Capital and Moinian Group officials did not respond to requests for information about the change in ownership of the Renaissance Tower.

The takeover of the skyscraper is the largest distressed real estate transaction in North Texas since the start of the COVID-19 pandemic.

Built in 1974, the skyscraper was Dallas’ tallest building for years.

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CFPB fine PHLoans $ 260,000 for targeted vets http://freedominst.org/cfpb-fine-phloans-260000-for-targeted-vets/ http://freedominst.org/cfpb-fine-phloans-260000-for-targeted-vets/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/cfpb-fine-phloans-260000-for-targeted-vets/

A fourth mortgage company was hit with a consent order from the Bureau of Consumer Financial Protection for misleading advertising targeting military service members and veterans. PHLoans will pay $ 260,000 to resolve this issue.

According to a CFPB press release, PHLoans, a California firm licensed as a mortgage broker or lender in approximately 11 states, was known as Pacific Home Loans until at least April 2019. It offers mortgage loans backed by the United States Department of Veterans Affairs (VA). PHLoans’ primary means of advertising VA-backed loans is through direct mail ads sent primarily to US military service members and veterans.

The CFPB found that PHLoans sent consumers numerous VA-backed mortgage mailers that contained false, misleading and inaccurate claims or lacked the required information, in violation of the Consumer Financial Protection Act (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices – Advertising Rule (MAP Rule) and Regulation Z. The consent order requires PHLoans to pay a civil fine and imposes requirements to prevent future violations.

The CFPB also ruled that PHLoans ran advertisements that contained false, misleading and inaccurate claims or that did not include the required disclosures. For example, PHLoans advertisements misrepresented the credit terms of the advertised mortgage loan by stating credit terms that the company was not actually willing to offer to the consumer, including misrepresenting the amount of payment applicable to the advertised mortgage and the nature or the amount of money available to the consumer in connection with the advertised mortgage.

PHLoans has also provided misrepresentations as to the existence and amount of commissions or costs to the consumer in connection with the advertised mortgage. The office also found that PHLoans advertisements did not correctly disclose, when required by Regulation Z, the credit terms for the advertised mortgage, such as the consumer’s repayment obligations for the entire term of the loan.

The action is the fourth case resulting from an investigation by the Investigation Bureau of multiple mortgage companies using deceptive mailers to advertise VA-backed mortgages. On July 24, 2020, the office announced consent orders against Sovereign Lending Group and Prime Choice Funding, and on August 21, 2020, the Bureau announced a consensus order against Go Direct Lenders, Inc., for similar violations. The office began this patrol in response to concerns about potentially illegal advertising in the market identified by the VA.

This ongoing series of investigations reflects the bureau’s commitment to enforce laws that ensure the financial market is fair and accurate for all consumers, including service members, veterans, and surviving spouses for whom the mortgages are intended. guaranteed by VA.

The consent order requires PHLoans to pay a civil fine of $ 260,000. The consent order also imposes injunctive relief to prevent future violations, including requiring PHLoans to strengthen its compliance functions by designating an advertising compliance officer who must review its mortgage announcements for compliance with advertising laws. on mortgages before their use; prohibit false statements similar to those identified by the office; and require PHLoans to comply with certain advanced disclosure requirements to prevent future misrepresentation.

The consensus order against PHLoans can be found Here.

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Sunak dumps £ 1.1bn slice of state-owned NatWest lenders | Business news http://freedominst.org/sunak-dumps-1-1bn-slice-of-state-owned-natwest-lenders-business-news/ http://freedominst.org/sunak-dumps-1-1bn-slice-of-state-owned-natwest-lenders-business-news/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/sunak-dumps-1-1bn-slice-of-state-owned-natwest-lenders-business-news/

The government sold a £ 1.1 billion stake in NatWest, bringing its stake in the state bank to less than 60%.

NatWest, then known as the Royal Bank of Scotland, was bailed out by taxpayers in a £ 45.5bn bailout deal during the financial crisis over a decade ago.

The latest deal reduces the Treasury’s stake in the lender from 61.7% to 59.8% after a tranche of shares is resold to NatWest, rather than the market.

The deal was authorized by Chancellor Rishi Sunak

But the sale of the shares at 190.5p each, compared to the 502p price at which they were bailed out, crystallizes a loss of £ 1.8bn for the taxpayer.

Chancellor Rishi Sunak and UK Government Investments – the body responsible for state holdings in bailed out financiers – have cleared the trial.

The Treasury said: “It represents an important step in the government’s plan to return publicly owned institutions following the 2007-2008 financial crisis to private ownership.”

NatWest’s return to the private sector was a much longer deal than Lloyds Banking Group’s, with the government. disposal of his last remaining holding in that bank in 2017.

The government has not sold any of its holdings in NatWest since 2018, when it divested a £ 2.5 billion portion of its holding. It previously sold £ 2.5 billion worth of shares in 2015.

He said this month he had a goal to return the bank to full private ownership in 2026, a year later than previously planned.

The latest announcement comes as official data illustrate the persistence of the precarious state of public finances thanks to the coronavirus pandemic, with loans for February alone at 19.1 billion pounds – 17.6 billion pounds more than the previous year – adding to a pile of debt of 2.1 trillion pounds, equal to 97.5% of GDP.

The crisis also weighed on banks, including NatWest, which reported an annual loss of £ 351 million for 2020.

Meanwhile, in a separate development, it was announced this week who the lender is face criminal charges brought by the city supervisor for claims that they did not comply with money laundering regulations.

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Otterbourg appoints James Cretella as president of the Alternative and Specialist Finance Practice Group http://freedominst.org/otterbourg-appoints-james-cretella-as-president-of-the-alternative-and-specialist-finance-practice-group/ http://freedominst.org/otterbourg-appoints-james-cretella-as-president-of-the-alternative-and-specialist-finance-practice-group/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/otterbourg-appoints-james-cretella-as-president-of-the-alternative-and-specialist-finance-practice-group/

NEW YORK–() –PC Otterbourg announced today that James M. Cretella was appointed president of the company’s Alternative and Specialty Finance Practice Group.

Member of the firm’s financial department, Mr. Cretella represents credit institutions, factoring companies and major financial institutions, as well as borrowers, in a variety of lending, factoring and corporate transactions.

“Jim has earned an outstanding reputation among both clients and colleagues for his skillful advice on complex financial transactions. Jim is an out-of-the-box thinker and the company’s customers regularly seek his advice on many of their most difficult situations, ”said Richard L. Stehl, president of Otterbourg. “His leadership qualities are equally impressive and we are delighted that he will preside over this expanding area of ​​practice.”

Mr. Cretella has practiced in Otterbourg throughout his career and his experience includes financial transactions in a wide range of industries, including personnel, technology, transportation, oil and gas, and government procurement. His areas of interest include asset-based lending, supply chain finance, trade finance, and special finance. He often plays the role of “internal external consultant” to finance specialized companies and credit institutions.

Mr. Cretella is co-author of the column “What would you do”, which appears regularly in The guaranteed lender, and is a 2016 winner of the Commercial Finance Association 40 under 40 Awards.

Otterbourg’s lawyers specializing in alternative and specialist finance, all members of the firm financial department, represent banking and non-banking lenders, factors and financial companies specializing in the creation, negotiation and documentation of various alternative and special financial products. They have considerable experience with credit lines based on monthly recurring revenue (MRR) to software companies as a service (SAAS) and with a broad spectrum of commercial and supply chain financing transactions, including factoring, order financing. purchase and financing of the channel. In addition to being experienced in structuring “true sale” credit lines with or without the use of special purpose vehicles, the practice group also regularly represents clients with inventory loans and other asset-based credit lines to companies that do not are eligible for commercial loans. Otterbourg lawyers have a deep understanding of both the traditional commercial loan market and the alternative and specialized financial market.

Information on PC Otterbourg

Otterbourg PC offers clients a unique combination of legal insights and practical solutions and is known for its integrity, legal expertise, stability and business knowledge. The firm, founded more than 100 years ago, regularly represents clients in domestic and international matters, including banks, financial firms, hedge funds, private equity firms, real estate investment firms, corporate clients and high net worth individuals. . The firm’s areas of practice include domestic and cross-border financing, litigation and alternative dispute resolution, real estate, restructuring and bankruptcy proceedings, mergers and acquisitions and other corporate transactions, trusts and estates.

]]> http://freedominst.org/otterbourg-appoints-james-cretella-as-president-of-the-alternative-and-specialist-finance-practice-group/feed/ 0 New MBA CEO Robert Broeksmit is poised to be the lender’s attorney http://freedominst.org/new-mba-ceo-robert-broeksmit-is-poised-to-be-the-lenders-attorney/ http://freedominst.org/new-mba-ceo-robert-broeksmit-is-poised-to-be-the-lenders-attorney/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/new-mba-ceo-robert-broeksmit-is-poised-to-be-the-lenders-attorney/

Broeksmit spent most of his youth in Dwight, Illinois, a city of fewer than 4,000 people about 80 miles southwest of Chicago. Corn and soybean fields fill the landscape, and Route 66 runs through the city center. His family lived in a rectory near the church where his father preached.

It was a rather humble upbringing, but it still came with a lot of expectations. Broeksmit’s father had attended Yale, while his mother had gone to Vassar College. He would become the fourth generation on his mother’s side and the third on his father’s side to attend Yale.

“There was a certain amount of educational pedigree, but there was no money,” Broeksmit said.

And despite growing up in a small town where everyone knows everyone’s business, Broeksmit found a way to get away with pranks.

“Our church organist was in the moonlight as a waitress at the truck stop, and the truck stop is where we would go late at night or early in the morning after misbehaving,” Broeksmit said. “And she would wait for us, and it was obvious we would have fun, and then I would see her in church the next morning and not a word was said. So it was actually a good set up.”

A few years after his career began, Broeksmit moved to Frederick, Md., To join Prudential Mortgage. There he met Bruce Muller, who took Broeksmit under his wing. The two worked together until Prudential was acquired by Norwest in 1996. (Norwest later merged with Wells Fargo in 1998.) The couple moved to Chevy Chase, a savings and loan company based in the Maryland suburbs of Washington.

Muller, a Marine Corps veteran who served in the Vietnam War, “swore like a sailor,” Broeksmit said, but he had an innate understanding of mortgage operations. His example set the stage for Broeksmit’s leadership style.

“I learned a lot from him, and in that gruff aspect, which he still retains today, he had a heart of gold,” Broeksmit said of his old boss. “He dated people online, converters, underwriters and closure managers, and he knew them very well, and he knew who a single mother is or, you know, someone who is maybe going through a tough time, and he did things like clipping. good for diapers and take them to these colleagues. “

When Muller retired from Chevy Chase, he recommended Broeksmit take his place. “He brings out the best in the people around him,” Muller said of his protege. “He’s the kind of guy who can take an average artist and turn him into a great artist, and he doesn’t even know what’s going on.”

It was unusual for the closely controlled bank to promote a young executive into such a high-profile role. “His detailed knowledge gave him instant credibility with the people they reported to him, who on the whole were much older,” Boyle said. “He’s a good leader. He speaks effectively in front of a group of loan agents or brokers or insurers – he just has that kind of gift.”

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Euromoney Polish banks under pressure as the GetBack scandal casts a long shadow http://freedominst.org/euromoney-polish-banks-under-pressure-as-the-getback-scandal-casts-a-long-shadow/ http://freedominst.org/euromoney-polish-banks-under-pressure-as-the-getback-scandal-casts-a-long-shadow/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/euromoney-polish-banks-under-pressure-as-the-getback-scandal-casts-a-long-shadow/

Warsaw Stock Exchange

GetBack, which completed an IPO on the Warsaw Stock Exchange (WSE) in July 2017, was at the center of a growing scandal from the non-payment of his debt in mid-April.


Konrad Kakolewski

Several members of the company’s senior management, including former CEO Konrad Kakolewski, were arrested on charges of fraud, mismanagement and destruction of evidence.

Other representatives of the Warsaw financial community were also involved in the affair.

Several wealth managers are facing a scrutiny of investments in distressed debt funds managed by GetBack, while two former board members of WSE-listed fund manager Altus were arrested in early September on suspicion related to the sale. debt collector EGB Investments to GetBack in May 2017.

The turmoil has also been felt in the Polish banking sector, where locals fear it could prove paralyzing for two ailing lenders controlled by local tycoon Leszek Czarnecki.

Getin Noble Bank, the larger of the two, has been at a loss since late 2016 after a reckless attempt to build market share in the wake of the financial crisis by lending risky mortgages, which have led to an increase in bad loans.

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Retirement Plans Teachers, AIMCo sells proxy consultant Glass Lewis to Toronto buyers http://freedominst.org/retirement-plans-teachers-aimco-sells-proxy-consultant-glass-lewis-to-toronto-buyers/ http://freedominst.org/retirement-plans-teachers-aimco-sells-proxy-consultant-glass-lewis-to-toronto-buyers/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/retirement-plans-teachers-aimco-sells-proxy-consultant-glass-lewis-to-toronto-buyers/

Stephen Smith, founder and CEO of mortgage lender First National Financial Corp.

Margaret Mulligan / The Globe and Mail

Two major retirement plans are selling US-based proxy consultancy Glass Lewis & Co. to a new group of Canadian owners.

Peloton Capital Management of Toronto and Stephen Smith, founder and CEO of mortgage lender First National Financial Corp ., are purchasing Glass Lewis from Ontario Teachers’ Pension Plan and Alberta Investment Management Corp. (AIMCo).

Glass Lewis founders saw an opportunity in 2003, not long after the Enron / Worldcom crisis, in advising institutional shareholders on how to vote on issues in proxy statements. The field was – and probably still is – dominated by Institutional Shareholder Services (ISS), which had a nearly 20-year lead over Glass Lewis.

The story continues under the advertisement

Company analysts generate reports on governance issues, such as directors’ independence and performance, or compensation policies. The companies also advise shareholders on how to vote in mergers.

Mr. Smith said on Monday that buyers see opportunities in the growing investor interest in ESG – or environmental, social and governance issues. Additionally, he said, Glass Lewis is largely focused on North America and there are opportunities for international expansion.

“Proxy advice has moved from compliance to the investment manager’s office, so I think there is a demand for more than one opinion,” Smith said. “Glass Lewis under our ownership will be a little more focused on developing this into a big business that rivals ISS.”

“We believe our management of Glass Lewis has contributed to the advancement of good governance practices and healthy capital markets globally … we are delighted to transfer ownership of a strong and growing Glass Lewis to new shareholders,” he said. Teachers spokesman Dan Madge said.

A statement by AIMCo spokesperson Dénes Németh echoed this sentiment, describing the new owners as “like-minded investors”.

The parties did not disclose the terms of the deal, but Smith said he and Peloton were competing in “a robust auction” that included strategic bidders. The teachers bought Glass Lewis in 2007 for $ 46 million from Xinhua Finance, partly owned by the Chinese state news agency. Xinhua had only owned Glass Lewis for about a year at the time. AIMCo acquired its 20% stake in Glass Lewis from Teachers in 2013.

The sale of Glass Lewis comes shortly after German stock exchange operator Deutsche Boerse acquired an 81% stake in ISS at the end of February for about $ 1.8 billion. It was the fourth change of ownership of ISS in a decade: Seller Genstar Capital bought it for $ 720 million in 2017 from Vestar Capital Partners. Vestar bought the company for $ 364 million in 2014 from MSCI, which has owned ISS since 2010.

The story continues under the advertisement

“Although the ISS is a little bigger than us, there are still barriers to entry into this business,” said Smith. “When you cover 20,000 meetings a year, even trying to reach this scale is difficult.”

Proxy consultants are navigating an increasingly challenging regulatory environment. During the Trump presidential administration, the United States Securities and Exchange Commission embraced the corporate community’s view that consultants were not sufficiently transparent and companies had little compensation for reporting errors.

“I own regulated companies,” Smith said, pointing to his mortgage insurance and bank holdings. “I don’t look at regulation with trepidation: I look at regulation in many areas, particularly this one, as creating more demand.”

With a Reuters report

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Sensex, Nifty ends at record highs as consumer goods rise http://freedominst.org/sensex-nifty-ends-at-record-highs-as-consumer-goods-rise/ http://freedominst.org/sensex-nifty-ends-at-record-highs-as-consumer-goods-rise/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/sensex-nifty-ends-at-record-highs-as-consumer-goods-rise/

BENGALURU (Reuters) – Indian equities closed on Monday at a record high, with the Nifty up for a fifth consecutive session as consumer giants Hindustan Unilever and ITC advance, even as losses in private sector lender HDFC Bank they have limited earnings.

A broker reacts while trading at his computer terminal at a securities firm in Mumbai, India, February 1, 2020. REUTERS / Francis Mascarenhas / Files

The NSE Nifty 50 index closed up 0.73% at 13,355.75, while the S&P BSE Sensex benchmark advanced 0.77% to 45,426.97. Both indices posted five consecutive weeks of gains amid news of progress in coronavirus vaccines.

In the latest domestic development, the Serum Institute of India, the world’s largest vaccine producer by volume and India’s leading hope for large-scale supplies, said it had submitted its first formal application for approval of the emergency use for the AstraZeneca COVID-19 vaccine.

Daily cases of the virus in the world’s second most populous country remained below 50,000 for a month, despite a busy festival season.

Among consumer goods stocks, Hindustan Unilever was up 3.3%, while ITC was up 2.5%. Mortgage lender HDFC Ltd grew 2.6%.

ICICI Bank Ltd and smaller rival Bandhan Bank ltd were up 1.7% and 4.5% respectively, after Goldman Sachs added them to its “belief list” of best stock picks and increased their target prices.

Goldman also updated IndusInd Bank Ltd’s rating and target price, raising its shares by 2.4%.

ONGC shares were up 1.9% after the company said Friday that its foreign arm carried out a “significant oil strike” in its block in Colombia. (bityl.co/4ji9)

By capping gains, HDFC Bank Ltd fell 1% to its mid-November low. Credit rating agency Moody’s said the bank’s multiple digital disruptions, which prompted the Reserve Bank of India on Thursday to curb its digital and credit card operations, were bad for credit.

Smaller rival Kotak Mahindra Bank Ltd fell 1.4% after Goldman downgraded the stock to “neutral” from “buy”.

Reporting by Chris Thomas in Bengaluru; Editing by Vinay Dwivedi

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Barclays expands private bank in France and Italy | The powerful 790 KFGO http://freedominst.org/barclays-expands-private-bank-in-france-and-italy-the-powerful-790-kfgo/ http://freedominst.org/barclays-expands-private-bank-in-france-and-italy-the-powerful-790-kfgo/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/barclays-expands-private-bank-in-france-and-italy-the-powerful-790-kfgo/

By Lawrence White

LONDON (Reuters) – Barclays has expanded its private banking business in France and Italy as it seeks to grow its European wealth business in the wake of Britain’s exit from the European Union.

The bank said on Monday that it has appointed Bernard Corneau and Carlo Baronio respectively to head the coverage of private banks in France and Italy, both of which are based in the lender’s investment banking offices in those countries.

The duo will be supported by Barclays’ new European hub in Dublin as the bank, in common with many other lenders in Europe, moves from serving corporate and wealthy clients from a London hub to a more pan-European model.

The couple will target the so-called ultra high net worth market segment, defined as clients with investable assets of around $ 100 million, as well as so-called family offices that look after the wealth of wealthy families or individuals.

Barclays does not disclose profits or assets under management for its private bank, making it difficult to gauge the success of a company facing stiff competition from European rivals seeking to grow.

“Despite the COVID-19 crisis, we have continued to see strong growth in assets under management,” Jean-Christophe Gerard, chief executive of private bank Barclays, told Reuters.

“Europe remains the second largest market after the United States, about 20% of the total global market, and we see opportunities to grow our market share in countries such as France and Italy where there is still strong creation of wealth. “

Reuters reported in October the bank’s plans to expand its private banking business in Europe, leveraging its investment bank’s ties to wealthy entrepreneurs, family offices and businesses.

“We are also thinking about other European markets, such as Germany, where we can leverage our existing relationships through our corporate and investment bank,” said Gerard.

(Reporting by Lawrence White; editing by Susan Fenton)

]]> http://freedominst.org/barclays-expands-private-bank-in-france-and-italy-the-powerful-790-kfgo/feed/ 0 The founders advantage completes the acquisition of Dominion http://freedominst.org/the-founders-advantage-completes-the-acquisition-of-dominion/ http://freedominst.org/the-founders-advantage-completes-the-acquisition-of-dominion/#respond Tue, 23 Mar 2021 05:55:09 +0000 http://freedominst.org/the-founders-advantage-completes-the-acquisition-of-dominion/

CALGARY, Alberta, January 01, 2021 (GLOBE NEWSWIRE) – Founders Advantage Capital Corp. (TSX-V: FCF) (“FAC” or “Corporation”) is pleased to announce that it has completed its acquisition (the “Acquisition”) of all limited partnership shares of Dominion Lending Centers Limited Partnership (“DLC LP”) that the Company did not otherwise own in exchange for a total of 26,774,054 non-voting Class B Series 1 Preferred Shares (the ” Preferred shares “). Concurrently with the completion of the acquisition, the company completed a private placement of 4,285,714 class “A” common stock (“common stock”) for aggregate gross proceeds of $ 7.5 million (the “private placement”). The Company paid the proceeds of the Private Placement and issued an additional 4,285,714 Common Shares to the holders of the Preferred Shares to eliminate the provisions in the Preferred Shares that provide holders with a disproportionate share of future cash distributions above a defined threshold amount (the “Reversal Rights”). Upon completion of the acquisition, the Corporation liquidated DLC LP, merged with Dominion Lending Centers Inc. (“DLC”) and changed the Corporation’s name to Dominion Lending Centers Inc. (collectively, the “Reorganization”).

As previously announced, the Company obtained shareholder approval for the acquisition and reorganization on December 15, 2020. Further details relating to the acquisition and reorganization are set out below.

The acquisition

As of December 31, 2020, the Corporation acquired full ownership of DLC LP in exchange for 26,774,054 preferred shares. The actual number of Preferred Shares is an arbitrary number for administrative convenience since the Preferred Shares have fixed rights and are not convertible into Ordinary Shares. The Preferred Shares do not have voting rights and are not convertible into Ordinary Shares, will not be listed on any stock exchange and will provide the Preferred Shareholders with economic and legal rights similar to those of the shares acquired in DLC LP. The terms and conditions of the Preferred Shares are established in the Company’s information circular dated 9 November 2020 (available on SEDAR).

As of January 1, 2021, the Corporation liquidated DLC LP and merged with Dominion Lending Centers Inc. (changing its name to “Dominion Lending Centers Inc.”).

The private placement

As of December 31, 2020, the Company has completed the Private Placement and issued 4,285,714 Common Shares for gross proceeds of $ 7.5 million ($ 1.75 per Ordinary Share). Belkorp Industries Inc. (“Belkorp”), a related party to the Company, was the sole subscriber. The proceeds from the Private Placement were paid to the holders of the Preferred Shares to finance the cash portion of the Reversal Right Resolution Transaction discussed below.

Reversal Right Resolution Settlement

As of 31 December 2020, the Company paid the Reversal Termination Fee (defined below) to the holders of the Preferred Shares and amended the Preferred Shares to remove the Reversal Rights. The “Reversal Termination Fee” includes a total cash amount of $ 7.5 million (the “Cash Settlement for Reversal Termination”) and a total of 4,285,714 Common Shares (the “Reversal Resolution Shares” of the Inversion “). Because the Reversal Termination Shares are issued at an estimated value of $ 1.75 per share, the Reversal Termination Fee has an estimated aggregate value of $ 15.0 million.

Post-closure capitalization and controlling persons

Upon completion of the Acquisition, Private Placement and Inversion Termination, 46,653,941 Ordinary Shares and 26,774,054 Preferred Shares were issued and in circulation.

KayMaur Holdings Ltd. (“KayMaur”), a company owned and controlled by Gary Mauris and Chris Kayat, holds a total of 16,524,759 common shares (35.4%) and 25,432,674 preferred shares (95%). Belkorp holds a total of 12,276,714 Ordinary Shares (26.3%).

Name change and trading symbol change to “DLCG”

Effective January 1, 2021, the company changed its name to Dominion Lending Centers Inc. After filing the required documentation with the TSX Venture Exchange, the company’s common stock will begin trading under the symbol “DLCG”. The company’s common stock is expected to begin trading under the new symbol when trading opens on January 8, 2021.

Management changes

As of January 1, 2021, the Company has completed the following management changes:

  • Gary Mauris became Chief Executive Officer and Executive Chairman;
  • Chris Kayat became the executive vice president;
  • James Bell (current president of FAC) and Eddy Cocciollo (current president of Dominion Lending Centers Inc.) have been appointed co-chairs of the Corporation. Mr. Bell will be responsible for the operations of the public company and the management of non-core assets while Mr. Cocciollo will be responsible for the DLC loan disbursement operations.
  • Robin Burpee (current Chief Financial Officer of FAC) and Geoff Hague (current Chief Financial Officer of Dominion Lending Centers Inc.) have been appointed co-Chief Financial Officer of the Corporation. Ms Burpee will be responsible for the financial management of public companies and non-core assets, while Mr. Hague will be responsible for the financial management of the mortgage issuance operations.

There have been no changes to the Company’s Board of Directors. The Corporation’s board of directors includes: Gary Mauris, Chris Kayat, James Bell, Trevor Bruno, Ron Gratton, Dennis Sykora and Kingsley Ward.

Changes to the Sagard credit structure

As of January 1, 2021, the Corporation and Sagard Credit Partners, LP (together with its parallel funds, “Sagard”) have entered into an amended and restated credit agreement (the “Amended and Reassessed Credit Agreement”). The Amended and Reassessed Credit Agreement offers the Company the option to extend the expiration date of the credit facility by one year until June 14, 2023 (the “Extension Option”), provided that the leverage ratio total amount of the Company is below a prescribed level. In consideration of the Extension Option, the Company has agreed to extend the maturity date of the 2,078,568 Lender Warrants held by Sagard for a further year (the new maturity of the Lender Warrants will be June 14, 2023).

Changes to the governance of non-core assets

Following the completion of the acquisition and reorganization, the company continues to hold its stakes in Club16 and Impact (the “Non-Essential Activities”). However, as of December 31, 2020, the Company has signed the following governance modification agreements (“Amendments to the governance of non-essential assets”):

  • The Company and the Club16 officers have entered into an amendment agreement to amend the terms of the shareholder agreement to reduce the candidates for the Company’s Club16 board of directors from three (3) representatives to two (2) representatives. Therefore, Club16 officers will now have two (2) board representatives and the Company will now have two (2) board representatives.
  • The Corporation and the directors of Impact Communications entered into an amendment agreement to change the terms of the shareholder agreement to reduce the Corporation’s Impact board candidates from two (2) representatives to one (1) representative. As such, the Impact Principal will now have one (1) representative of the board of directors and the Corporation will now have one (1) representative of the board of directors.

As a result of the amendments to the governance of non-core assets, the company will be able to better highlight the core business of Dominion loan centers from non-core assets that will help users of the company’s financial information better understand the financial performance of the business.

About Dominion Lending Centers Inc.

The DLC group of companies is Canada’s premier and largest mortgage broker with over $ 40 billion in mortgages funded in 2019. The DLC group of companies operates through four main subsidiaries, Dominion Lending Centers, Mortgage Center Canada, Mortgage Architects and Newton Connectivity Systems and has operations in all 13 provinces and territories. The extensive network of the DLC group of companies includes approximately 6,000 agents and 515 locations. Based in British Columbia, the DLC group of companies was founded in 2006 by Gary Mauris and Chris Kayat.

About the founders Advantage Capital Corp.

The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and adopts a permanent investment approach.

The Corporation’s common stock is listed on the TSX Venture Exchange under the symbol “FCF”.

For more information, please refer to the Company’s website at www.advantagecapital.ca.

The contact information for the company is as follows:

James Bell
President and CEO
Robin Burpee
Head of the financial office
Amar Leekha
Senior Vice President, Capital Markets


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