News Feed Item

Eclipse Residential Mortgage Investment Corporation Announces Special Meeting of Shareholders

TORONTO, ONTARIO -- (Marketwired) -- 10/19/16 -- Eclipse Residential Mortgage Investment Corporation ("Eclipse" or the "Corporation") (TSX: ERM) is pleased to announce that it is calling a special meeting of holders of Class A Shares (the "Shareholders") to consider and vote upon an extraordinary resolution approving the transition of the Corporation from the Canadian securities regulatory regime for investment funds (the "Investment Funds Regime") to the regulatory regime for reporting issuers that are not investment funds (the "Public Company Regime"), together with related changes to the Corporation's articles and material agreements to reflect the change in regulatory regime (the "Proposed Transition"). The Proposed Transition includes, among other things, amending the articles of the Corporation to create a new class of voting common shares and exchanging all Class A Shares for such voting common shares (which will not have any redemption features), the elimination of the trailer fee, revising the Corporation's investment restrictions, including removal of the majority of the Corporation's investment restrictions, changing them to investment guidelines and making certain changes to those guidelines, and amending certain terms of the Corporation's material contracts to reflect the change from the Investment Funds Regime, including amendments to the management agreement between the Corporation and Brompton Funds Limited, the manager of Eclipse.

The Corporation has had strong performance since its inception in June 2013. Despite this strong performance, the Corporation has a very limited ability to grow and its investment strategies are limited under the investment fund regulatory framework implemented by the Canadian Securities Administrators in September 2014. Without the ability to raise new equity under the Investment Funds Regime and with the other investment restrictions now imposed under the Investment Funds Regime, assets in the Corporation may decline from the annual redemption until the strategy is no longer viable or economic for long-term Shareholders that wish to benefit from this unique investment solution. Market liquidity may decrease and operating costs may become increasingly more difficult to bear by the remaining long-term Shareholders, unless the Corporation makes the necessary changes to allow for the opportunity for growth. Management believes the benefits of transitioning to the Public Company Regime include, but are not limited to, the ability to expand its investment opportunities by allowing new equity capital to be invested in uninsured mortgages, an expanded ability to raise new capital and the potential to adopt a measured increase in the use of leverage. Management believes that the Corporation has an attractive investment strategy and with the transition from the Investment Funds Regime to the Public Company Regime, along with other operational changes, the Corporation will be well positioned to grow earnings per share and dividends over time.

Since inception, the Corporation has increased its monthly dividend and increased its net asset value by investing in a diversified portfolio comprised primarily of interests in single family residential mortgages that seeks to preserve capital and generate sufficient income to permit the Corporation to pay monthly dividends on the Class A Shares. Management is proposing no changes to the investment objectives or investment strategies of the Corporation and believes that continuing with the existing investment objectives and investment strategies leverages the Corporation's success over the last three and a half years.

Since its initial public offering, the Corporation has paid $1.98 per Class A Share in dividends. The Corporation's current dividend rate is $0.65 per annum, payable monthly, which represents a current dividend yield of 6.9% based on the Corporation's closing price per Class A Share on the Toronto Stock Exchange of $9.40 on October 17, 2016. The Corporation increased its dividend from $0.60 per annum to $0.65 per Class A Share per annum in April 2015. Since inception (to September 30, 2016), the Corporation has generated a 7.8% per annum return(1) which outperformed its benchmark, the FTSE TMX Canada Short-Term Bond Index, by 5.2% per annum.

With other structural amendments to the Corporation, including the elimination of the trailer fee, as well as the strong performance of the mortgage portfolio, the Corporation believes that it can increase the dividend further following the completion of the Proposed Transition. If the Proposed Transition is approved by Shareholders, it is the intention of the board of directors of the Corporation (the "Board") and management to increase the annual dividend by $0.10 (or 15.4%) to $0.75 per annum, increasing the dividend yield to approximately 8.0% based on the Corporation's closing price per Class A Share on the Toronto Stock Exchange of $9.40 on October 17, 2016 (although the final amount of any dividend remains subject to declaration by the Board).

The Proposed Transition will not impact Shareholders' 2016 annual redemption right. Shareholders will also be asked at the meeting to approve the extension of the redemption notice period to December 7, 2016 to permit Shareholders to consider the results of the Meeting prior to submitting any redemption notice.

Eclipse will hold the special meeting on or about November 30, 2016 to consider and vote on the Proposed Transition. Shareholders of record at the close of business on October 31, 2016 will be entitled to vote at the meeting. Details of the Proposed Transition will be further outlined in Eclipse's notice of meeting and management information circular that will be prepared and delivered to Shareholders in connection with the special meeting and will be available on www.sedar.com on or about November 8, 2016.

About Brompton Funds

Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2.0 billion in assets under management. Brompton's investment solutions include TSX listed closed-end funds, mutual funds, hedge funds and flow-through limited partnerships. For further information, please call Brompton's investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.

About MCAP Financial Corporation

One of Canada's largest mortgage financing companies, MCAP Financial Corporation originates and services all mortgages for Eclipse. MCAP has more than 20 years of experience underwriting and servicing Canadian Single Family Residential Mortgages, with over $50 billion in mortgage assets managed for banks, lifecos, credit unions and institutional investors.

(1) Please see www.bromptongroup.com for returns for all periods.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about Eclipse in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and does not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to Eclipse, to the future outlook of Eclipse and anticipated events or results and may include statements regarding the future financial performance of the Fund and the expected amount of future dividends. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

Investor Relations
416-642-6000 (toll-free at 1-866-642-6001)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...