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EquityLine announces voting on common share split

Canada-based and Jamaican-listed mortgage financier EquityLine Mortgage Investment Corporation has announced the completion of a voting on common equity share split.

The 200 issued and outstanding voting common shares were subdivided into 100-million issued and outstanding voting common shares of the corporation. There is one voting right per one million common shares.

The transaction was completed on November 11, 2021. EquityLine Mortgage Investment Corporation is a Canadian mortgage investment corporation incorporated under the laws of the Province of Ontario and located in Richmond Hill, Ontario.

EquityLine MIC was founded in 2018 and is listed on the Jamaica Stock Exchange (JSE) (www.jamstockex.com) under the symbol ELMIC.

Mischa McLeod-Hines (second right), Assistant Vice President, Capital Markets, Sagicor Investments engages (from left) Sergiy Shchavyelyev, president and CEO, Equity Line Mortgage Investment Corporation (ELMIC); Jamaica Stock Exchange Managing Director, Marlene Street Forrest and ELMIC lawyer, Alison Manzer, following the successful listing of the Canadian-based mortgage provider on the JSE. (File photo)

The company ended its third quarter of 2021 in September with a net loss and comprehensive loss of CAD$480,397. However, this was an improvement on the net loss for the same period in 2020 of CAD$890,325.

During the nine months ended September 30, 2021, the company funded 53 new mortgages in 2021 totalling CAD$17.39 million. Regulatory changes, including the B20 guidelines, have resulted in most residential-focused lenders tightening up on income qualification, thus forcing borrowers to private lenders, as a result of difficulty qualifying for institutional loans.

EquityLine reports that this has resulted in a large increase in demand for more private mortgage products nationwide. One hundred per cent of the EquityLine’s portfolio is invested in Ontario urban markets that generally experience better real estate liquidity in periods of uncertainty and thus offer a better risk profile.

“EquityLine continues to build its team and platform for managing the growth we are seeing today and anticipate in the near future

— EquityLine President and Chief Executive Officer Sergiy Shchavyelyev

During the nine-month period, the company earned interest income on net mortgage investments of CAD$1.12 million, up from the CAD $743,836 recorded for the comparable period in 2020.

As the company strengthens its balance sheet with the completion of the successful JSE public offering in fiscal 2020, funds were put towards a high-quality mortgage portfolio. This portfolio of mortgages at September 30, 2021 has an average loan-to-value of 73.0 per cent.

No defaults or mortgage losses so far this year

EquityLine’s President and Chief Executive Officer Sergiy Shchavyelyev, in his quarterly report to shareholders, boasted that so far this year there has been no instance of defaults or mortgage losses.

EquityLine President and Chief Executive Officer Sergiy Shchavyelyev (Photo: Twitter @shchavyelyev)

He was quick to state that, “we see tremendous growth opportunities in our market segments and plan to capitalise on it. As we expand our revenues, we will achieve the necessary economies of scale to achieve sustainable profitability while ensuring consistent dividend distributions.”

He advised that EquityLine returned an annual return of eight per cent, paid monthly on its publicly traded preference shares and expect this to continue in the foreseeable future.

”EquityLine continues to build its team and platform for managing the growth we are seeing today and anticipate in the near future. We continue to invest in our people, systems, and partnerships to ensure EquityLine MIC delivers quality service, accessible mortgage solutions and performance results expected by our clients and shareholders,” Shchavyelyev remarked.

The Canada-based and Jamaican-listed company is focused on building a strong mortgage portfolio secured by qualified real estate assets, whilst continuing to mitigate risk through mortgage diversification, funding shorter-term loans (less than 12 months) and strictly applying a conservative underwriting practice to every mortgage we fund.
EquityLine has consistently paid dividends and is dedicated to predictable cash flow for its shareholders.

— Durrant Pate