Calgary, Alberta--(Newsfile Corp. - April 8, 2024) - Builders Capital Mortgage Corp. (TSXV: BCF) (the "Company") announced today that its participating bond offering has received approval for issuance by the TSX Venture Exchange. By way of this bond offering, the Company will raise up to fifty million dollars, the proceeds of which to be used in the Company's ongoing mortgage business to fund short-term, residential construction mortgages in Alberta and British Columbia.

The bonds will participate on a pari passu (equal) basis with the existing shares relative to returns and risk. The bonds and shares are aligned pro rata in accordance with their share capital contribution.

The pro rata structure of the bond offering and equal ranking with equity shares means that shareholders are not exposed to any additional leverage risk as they would be with a traditional bond. The net result is a small increase in projected shareholder returns with no additional risk. Bond features include a redemption option every six months to facilitate short-term liquidity while still preserving mortgage quality security at a targeted 75% loan-to-value on the entirety of the bond proceeds. In contrast to a traditional bond, the participating bond derives its yield from the net yield of the mortgage portfolio versus a fixed interest rate.

Bondholders gain access to a professional management team with a long and successful track record, proven risk remediation strategies, an existing and established borrower base, and an operating credit facility for effective cash management.

The following document outlines bond features and restrictions in more detail.

Sandy Loutitt, President and CEO said, "We are excited to be proceeding with this unique and positive fund-raising development for the Company. Alberta and Western Canada present an important market for the services of Builders Capital, and this new instrument allows the Company to better expand its reach. At the same time, the bond offering benefits existing shareholders by giving them greater diversification of risk in their mortgage portfolio and by lowering their fixed cost of operations due to the larger capital pool."

About Builders Capital

Builders Capital is a mortgage lender providing short-term, course-of-construction financing to builders of residential, wood-frame properties in Western Canada. The Company commenced active operations on December 12, 2013 on the closing of its initial public offering, whereupon it acquired a portfolio of mortgages from two predecessor companies.

Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations ("MIC") as defined in the Income Tax Act.

As an MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31^st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the Company had been made directly by the shareholder.

For further information, please contact:

Sandy Loutitt, Chief Executive Officer
Telephone: (403) 685-9888

Builders Capital Mortgage Corp.
Suite 260, 1414 - 8th Street SW
Calgary, Alberta T2R 1J6

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.