Trez Capital Mortgage Investment Corporation Provides Third Quarter Update and Announces Special Distribution

TORONTO, Nov. 23, 2022 /CNW/ – Trez Capital Mortgage Investment Corporation (the “Company”) today released its third quarter financial and business update and announced that its board of directors has declared a special distribution of $0.06 per Class A share of the Company (the “Special Distribution”). The Special Distribution, which constitutes a return of capital pursuant to the winding-up of the Company’s business as approved by Shareholders on June 16, 2016 (the “Orderly Wind-Up”), will be paid on November 30, 2022 to holders of Class A shares of record at the close of business on November 23, 2022. As of November 22, 2022, there were 11,649,711 Class A shares outstanding. The Special Distribution payment is not subject to any condition and will be made in cash.

Trez Capital Logo (CNW Group/Trez Capital Mortgage Investment Corporation)

Financial & Business Update

On June 16, 2016, the shareholders of the Company approved the Orderly Wind-Up and, effective at the close of markets on July 31, 2019, the Company delisted from the Toronto Stock Exchange. Upon delisting, the Company filed an application for an order that it cease to be a reporting issuer. The order was granted on October 4, 2019 and has permitted the Company to reduce financial and regulatory reporting requirements. The Company is updating investors by posting a quarterly press release and annual financial statements to its website at https://www.trezcapitalmic.com.

Below is a summary of the return of capital per book value since inception of the Orderly Wind-Up plan:

Summary of Return of Capital since Inception of the Orderly Wind Up Plan

Book Value per Share

Opening Book Value at inception of Orderly Wind Up June 30, 2016

$                               8.85

Total Regular and Special Distributions to Investors since inception of Plan

(9.02)

Increase/decrease from Operations in net assets (including SIB*)

0.29

Ending Book Value at September 30, 2022

$                               0.12

* Substantial Issuer Bid

There were no significant events in Q3 to report.

The Company is currently in the final wind-down period of the Orderly Wind-Up. All litigation matters have been settled and the Company’s remaining activity involves solely the maintenance of the Company pending release and discharge of all liabilities, contingent or actual. Final wind-up and dissolution plans have been formulated and the Special Distribution represents the a step in the final Orderly Wind-Up of the Company.

After the above-mentioned Special Distribution, the Company will have approximately $700,000 in cash as a reserve against ongoing operating and other expenses related to the Orderly Wind-Up. Upon release and satisfaction of all liabilities, the Company intends to make a final distribution of remaining funds to the holders of its Class A shares (the “Final Distribution”) and to file articles of dissolution. Completion of the Final Distribution and dissolution is expected to occur in 2023, however, remains subject to the Company obtaining clearance from certain regulatory authorities.

Forward Looking Statements

Certain statements in this news release about the Company, and its business, operations, investments and strategies, and financial performance and condition may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, “forward looking statements”). The forward-looking statements are stated as of the date of this news release and are based on estimates and assumptions made by Trez Capital Fund Management LP (“Trez”) in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Trez believes are appropriate and reasonable in the circumstances.  There can be no assurance that such forward-looking statements will prove to be accurate, as actual results, performance and future events could differ materially from those anticipated in such statements.  Past performance is not an indication of future returns, and there can be no guarantee that targeted returns or yields can be achieved. Trez refers you to the Company’s public disclosure for information regarding these forward-looking statements, including the assumptions made in preparing forward-looking statements and management’s expectations, and the risk factors that could cause the Company’s actual results, yield, levels of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.  Such public disclosure is available at the request of Trez.  This news release does not represent an offer or solicitation to sell securities of the Company.

About the Company

Trez Capital Fund Management Limited Partnership is the manager of and portfolio advisor to the Company. On June 16, 2016 the Shareholders of the Company approved the orderly wind-up of the Company. Under the orderly wind-up plan the Company will distribute the net proceeds through special distributions, the repurchase of shares pursuant to the normal course issuer bid, or otherwise.

SOURCE Trez Capital Mortgage Investment Corporation

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