Trez Capital Senior Mortgage Investment Corporation Announces Fourth Quarter and Fiscal 2020 Financial Results and Changes to its Board of Directors - Canada NewsWire | Canada News Media
Trez Capital Senior Mortgage Investment Corporation Announces Fourth Quarter and Fiscal 2020 Financial Results and Changes to its Board of Directors – Canada NewsWire
TORONTO, Feb. 17, 2021 /CNW/ – Trez Capital Senior Mortgage Investment Corporation (TSX: TZS) (the “Company”) today released its financial results for the three months and year ended December 31, 2020. The audited financial statements and annual MD&A of the Company can be found at www.sedar.com or www.trezcapitalseniormic.com. The Company also announces a change to the composition of its board of directors (the “Board”).
Financial Highlights & Business Update
For the three months and year ended December 31, 2020, income from operations decreased by $250 thousand and $53 thousand for the three months and year ended December 31, 2020, respectively, compared to the same periods in 2019. The decrease was primarily the result of an increase in management fees related to a $200 thousand fee paid by the Company pursuant to the terms of the Separation and Mutual Release Agreement entered into between the Company and Trez Capital Fund Management LP dated November 23, 2020, as described in the news release of the Company dated the same day. Remaining expenses were largely consistent with the same periods in 2019. Additionally, the fair value adjustment on investments of the Company in mortgages was reduced by $2.78 million during the fourth quarter of 2020. This was the result of management’s analysis of a single mortgage for which there has been a fair value adjustment based on a number of factors including the expected future cash flows on the mortgage outstanding, the estimated loan to value and recent payment history regarding this mortgage.
During the three months and year ended December 31, 2020, no mortgages were funded or fully repaid, although the Company did receive a substantial repayment on one of its remaining mortgages for which there was a fair value adjustment. The Company’s investment in existing mortgages decreased by $129 thousand, which was primarily the result of capitalized interest and a principle repayment of $3.9 million on one of the two remaining mortgages. Basic and diluted income per share was $0.61 and $0.55 for the three months and year ended December 31, 2020 respectively, compared to $(0.16) and $(0.07) in the same periods in 2019.
Changes to Board Composition
Effective February 16, 2021, Jordan Kupinsky has stepped down from the Board and Brad Nathan has been appointed as a new independent director of the Company. Mr. Kupinsky stepped down from the Board to ensue that there are a sufficient number of independent directors of the Company for the Company to comply with its audit committee member composition requirements under applicable securities laws. Mr. Kupinsky will continue to act as the Chief Executive Officer of the Company and is expected to be nominated by management to once again serve on the Board at the Company’s next annual and special meeting of shareholders (the “2021 Meeting”). The Company expects to put a resolution to shareholders at the 2021 Meeting to approve an amendment to the articles of the Company that would allow the Board to increase its size by up to one-third in between meetings of shareholders in order to provide the Company with greater flexibility with respect to the future composition of its Board.
Mr. Nathan is President of Lynx Equity Limited, a Toronto-based private equity & investment firm focused on acquiring small and medium-sized businesses, where he works with the Lynx management team to define strategy and goals. His responsibilities at Lynx include overseeing transactions, operations, capital sourcing and deal origination. After receiving his Chartered Accounting degree, Mr. Nathan practiced accounting at Price Waterhouse, and then at Grant Thornton in Toronto. He later served as Vice-President of merchant banking at Rothschild Canada Limited. Prior to forming Lynx, Mr. Nathan founded Succession Capital Corporation, a private equity firm that grew to $40 million in annual revenue. He also served on the Board of Directors of the Toronto Wildlife Centre for many years and continues to support wildlife related organizations.
Mr. Kupinsky, Chief Executive Officer of the Company, commented: “we are pleased to welcome Brad to the Board and know that his considerable experience and capabilities will be a welcome addition to the Board.”
About 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.
Forward-Looking Statements
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company. Details of the risk factors relating to the Company and its business are discussed under the heading “Business Risks and Uncertainties” in the Company’s annual Management’s Discussion & Analysis for the year ended December 31, 2020 and under the heading “Risk Factors” in the Company’s Annual Information Form dated March 31, 2020, copies of which are available on the Company’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE Trez Capital Senior Mortgage Investment Corporation
For further information: Jordan Kupinsky, Chairman and CEO, Tel: (416.972.1741), Email: [email protected]
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
