HONG KONG, April 30, 2019 /PRNewswire/ -- MFC Bancorp
Ltd. (the "Company" or "MFC") (NYSE: MFCB) announces it has filed
its financial results for the year ended December 31, 2018. The Company also announced
that it has scheduled a shareholder meeting to seek approval for:
(i) the change of its name to "Scully Limited"; and (ii) the
completion of a consolidation and subsequent forward split of its
shares to further reduce administrative expenses.
2018 Annual Report
In late 2018, the operator of the mine underlying our iron ore
interest in Canada announced that
it had completed financing to re-start mining operations and that
it plans to re-start the Scully mine in the summer of
2019. This development triggered a review of the carrying
value of this asset, which resulted in the recognition of an
after-tax non-cash gain of $137.4
million.
As a result, we returned to profitability for the first time
since 2013 and reported net income of $112.3
million, or $8.96 per share,
which increased our shareholders' equity to $386.4 million, or $30.82 per share.
The Company's financial results for 2018 are set forth in
its Annual Report on Form 20-F for the year ended December 31, 2018, a copy of which is available
on its website at www.mfcbancorp.com and under the
Company's profile at www.sec.gov.
All amounts are in Canadian dollars and the Company's financial
statements are prepared in accordance with International Financial
Reporting Standards.
Name Change / Consolidation and Split
Going forward, to reduce our costs and to better reflect our
balance sheet and business we have called a meeting of our
shareholders that is scheduled to be held on May 31, 2019. At the meeting, shareholders will
be asked to approve the change of our name to "Scully Limited",
which we believe better reflects our business strategy and profile
going forward.
In addition, At the meeting, shareholders will also consider the
approval of a consolidation of our common shares on a 25 for 1
basis, referred to as the "Consolidation", and subsequent forward
split of such shares on a 1 for 25 basis, referred to collectively
as the "Consolidation / Split". No fractional shares will be issued
as a result of the Consolidation to registered shareholders (i.e.
shareholders who hold their shares in registered form and not
beneficially through a broker or other intermediary), with such
fractional shares to be combined and sold by our transfer agent and
the proceeds thereof to be paid to registered holders of fractional
shares on a pro rata basis.
Subject to receipt of requisite shareholder approval, we
currently expect the name change and Consolidation/Split to be
completed on or about June 3, 2019.
Additional information regarding the name change and Consolidation
/ Split will be included in the proxy materials relating to the
meeting.
President's Comments
Michael Smith, President and CEO
of the Company, commented: "It is our goal and initiative to
structure the group in a way that assists in substantially
eliminating the discount between the market price of our common
shares and our stated net book value per share as of December 31, 2018. We are in the process of
defining and finalizing our plans and expect to announce details of
such strategy in the near future."
Stakeholder Communications
Management welcomes any questions you may have and looks forward
to discussing our operations, results and plans with stakeholders.
Further:
- stakeholders are encouraged to read our entire audited
financial statements and management's discussion and analysis for
the year ended December 31, 2018 as
set forth in our Annual Report on Form 20-F for a greater
understanding of our business and operations;
- direct any questions regarding the information in this report
to our North American toll free line: 1 (844) 331 3343 or email
info@mfcbancorp.com to book a conference call with our senior
management; and
- shareholders may request a hard copy of the Annual Report, free
of charge, by contacting the Company as set forth above.
About MFC
MFC is a merchant bank that provides financial services for
corporations and institutions. We specialize in markets that are
not adequately addressed by traditional sources of finance, with an
emphasis on providing solutions for small and medium sized
enterprises. We operate in multiple geographies and industries. As
a supplement to our operating business, we commit proprietary
capital to assets and projects where intrinsic values are not
properly reflected. These investments can take many forms, and our
activities are generally not passive. The structure of each of
these opportunities is tailored to each individual transaction.
Disclaimer for
Forward‐Looking Information
This news release contains statements which are, or may be
deemed to be, "forward‐looking statements" which are
prospective in nature, including, without limitation, statements
regarding the Company's business plans, future business prospects,
the plans of the operator underling our iron ore interest, the
anticipated completion of the proposed name change and
Consolidation / Split and any statements regarding beliefs,
expectations or intentions regarding the future.
Forward-looking statements are not based on historical facts,
but rather on current expectations and projections about future
events, and are therefore subject to risks and uncertainties which
could cause actual results to differ materially from the future
results expressed or implied by the forward-looking statements.
Often, but not always, forward-looking statements can be identified
by the use of forward-looking words such as "plans", "expects", "is
expected", "scheduled", "estimates", "forecasts", "projects",
"intends", "anticipates", or "believes", or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "should", "would", "might" or "will" be
taken, occur or be achieved. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause our
actual results, revenues, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Important factors that could cause our actual results,
revenues, performance or achievements to differ materially from our
expectations include, among other things:(i) periodic fluctuations
in financial results as a result of the nature of our business;
(ii) economic and market conditions; (iv) competition in our
business segments; (iii) our ability to obtain requisite approval
for the proposed name change or Consolidation / Split and we may
determine not to proceed with such transactions at planned or at
all; (iv) counterparty risks related to our finance activities; (v)
operating hazards; (vi) any failure by the operator of the mine
underlying our interest to complete its plans as disclosed by it or
at all; and (vi) other risks set forth in our public disclosure;
and (vii) other factors beyond our control. Such
forward-looking statements should therefore be construed in light
of such factors. Other than in accordance with its legal or
regulatory obligations, the Company is not under any obligation and
the Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or
otherwise. Additional information about these and other
assumptions are set forth in our Annual Report on Form 20-F
for the year ended December 31, 2018,
filed with the Securities and Exchange Commission.
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SOURCE MFC Bancorp Ltd.