Xceed Mortgage Schedules Shareholders’ Meeting to Seek
Approval for Continuance as a Federally Regulated Bank
Toronto, Ontario, August 7, 2009 – Xceed Mortgage Corporation [TSX: XMC], a
Canadian provider of insured mortgages, today announced that it will hold a Special
Meeting of shareholders on September 10, 2009.
At the meeting, shareholders will be asked to approve continuance of the company as a
federally regulated Schedule 1 bank under the Bank Act (Canada), to change its name
to Xceed Bank and Banque Xceed, and to confirm amendments to the by-laws of the
company. Continuance as a Schedule 1 bank also is subject to the approval of the
Office of the Superintendent of Financial Institutions (OSFI). The change in Xceed’s
name will take place subject to approval being received from OSFI to continue as a
bank.
“As we previously have stated, Xceed determined that it is advantageous for us to
become a Schedule 1 bank as it will provide us with access to retail deposits as an
additional source for obtaining funds that we can use for our mortgage originations
activities,” said, Ivan Wahl, Chairman and Chief Executive Officer.
“Retail deposits are a stable, cost-effective means to warehouse insured residential
mortgages prior to our pooling them for sale to the Canada Mortgage Bond program.
Retail deposits also are a reliable and permanent way to fund conventional residential
mortgages to be held on Xceed’s balance sheet until maturity. Continuation as a bank
also will assist Xceed in gaining approval from the Canada Housing and Mortgage
Corporation to pool and sell mortgages directly to the Canada Mortgage Bond program
without the need for us to rely on an intermediary and pay the costs associated with
that,” Mr. Wahl said.
“As a bank, Xceed will be able to resume selling financial products to the niche market
that is not well-served by traditional lenders and we will be able to compete on a level
playing field with existing small banks and trust companies,” he continued. Xceed also
will have more flexibility to eventually enter into the marketplace for other related
financial products, such as credit cards.
“As a federally regulated entity, Xceed expects to have access to a more stable funding
platform and to benefit from the lower risk accorded by investors to investments in
Canadian banks. This will result in Xceed becoming exposed to a wider range of
potential investors and other capital providers, which will enable us to continue to build
our capital base to support future growth. This should increase the value of our
business for our shareholders,” Mr. Wahl added.
The proposed continuance of the company as a bank requires approval by two-thirds of
the votes cast by Xceed’s shareholders present or represented by proxy at the special
meeting, as well as the obtaining of all necessary regulatory and other approvals.
1
About Xceed
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of insured
residential mortgages that it originates in Canada. The company has approximately
$2.0 billion of mortgages and other assets under administration. Xceed’s shares are
traded on the Toronto Stock Exchange (TSX: XMC). To find out more about Xceed
Mortgage Corporation, visit our website at www.xceedmortgage.com.
Forward-Looking Statements
Forward-looking statements in this document are based on current expectations that are
subject to significant risks and uncertainties. Actual results might differ materially due to
various factors such as the competitive nature of the mortgage industry, the ability of
Xceed to continue to execute its growth and development strategy, and the reliance of
Xceed on key personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from those reflected
in these. Additional information identifying risks and uncertainties is contained in
Xceed's regulatory filings available on its website and at www.sedar.com.
For further information, please contact Investor and Media Relations:
Richard Wertheim – Wertheim + Company Inc. – 416.594.1600 (bus.) or 416-518-8479
(cell) – email: wertheim@wertheim.ca.
2