Cervus Financial Group Inc. to Complete Equity Financing of Up to $10 Million.TORONTO -- Cervus Financial Group Inc. ("Cervus") (TSXVENTURE:CFG CFG Configuration (File Name Extension) CFG Control Flow Graph CFG Context-Free Grammar CFG Club for Growth CFG Cienfuegos, Cuba (city/airport code) CFG Critical Friends Groups ), which is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company dedicated to providing mortgages through selected leading mortgage brokers, is pleased to announce plans to proceed with a private placement of up to 10,000,000 common shares at a price of $1.00 per share for gross proceeds of up to $10,000,000.00. The private placement is expected to have two closings; the first is expected to close on November 26, 2004 and the second on or before December 15, 2004. Agents retained by Cervus in connection with the private placement will be paid cash commissions and work fees of up to $603,000 and non-transferable warrants of the Corporation entitling the holders to acquire up to an aggregate of 647,000 common shares at a price of $1.00 per common share for a period of 24 months following the closing date. The private placement remains subject to regulatory approval and completion of definitive documentation. Cervus expects to use the proceeds of this financing for balance sheet enhancement and general working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . About "Customer for Life" The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee A charge imposed by a lending institution or a bank for the service of processing a loan. For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan. and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus. About Cervus Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. to become a high-yield mortgage producer and the largest mortgage broker lender of AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $30B in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers. Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial service and related businesses. Cervus is focused on funding and servicing conventional and high ratio residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario's and British Columbia's mortgage broker legislation and is seeking similar regulatory approvals in Alberta and Quebec. Cervus head office and Ontario operations centre is located in Toronto, with additional planned offices in Vancouver (2005) serving Western Canada
Western Canada, commonly referred to as the West and in Montreal serving Quebec (2005). Cervus Financial Group Inc., will carry on all lending operations through its wholly-owned subsidiary, Cervus Financial Corp. Forward-looking (safe harbour) statement Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Additional information about Cervus is available on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review (www.sedar.com). The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. does not accept responsibility for the adequacy or accuracy of this release. Cervus Financial Group Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CFG) |
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