Shares of Dominion Lending Centres surge as shareholders approve preferred shares acquisition

Dominion Lending Centres Inc. (TSX: DLCG) announced this week that its shareholders have approved the acquisition of all Series 1 Class B preferred shares.

At a special meeting held on Tuesday, 99.99% of votes cast supported the acquisition, which will see the company acquire Series 1 preferred shares from KayMaur Holdings Ltd. and other holders. The deal includes issuing 30,500,000 common shares and a cash payment of $15 million.

The acquisition is expected to close by December 17, 2024, subject to regulatory approvals. This move is part of Dominion Lending Centres’ plan to simplify its capital structure and strengthen its position in Canada’s mortgage industry.

The approval came with strong shareholder participation, with 81.24% of outstanding common shares represented at the meeting. The changes also include the cancellation of the Series 1 preferred shares and adjustments to the company’s stated capital.

DLCG stock price up 173% year-to-date

DLCG’s stock has been on a remarkable upward trajectory in recent months, with its price surging by nearly 173% year-to-date, reaching $7.75 as of this afternoon.

Founded in 2006 by Gary Mauris and Chris Kayat, Dominion Lending Centres is one of Canada’s leading network of mortgage professionals, with over 8,500 brokers and agents across more than 500 locations nationwide.

DLC operates through its three main subsidiaries: Mortgage Centre Canada Inc., Mortgage Architects Inc., and Newton Connectivity Systems Inc.

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Last modified: December 7, 2024

Steve Huebl

Steve Huebl is a graduate of Ryerson University's School of Journalism and has been with Canadian Mortgage Trends and reporting on the mortgage industry since 2009. His past work experience includes The Toronto Star, The Calgary Herald, the Sarnia Observer and Canadian Economic Press. Born and raised in Toronto, he now calls Montreal home.