February 08, 2013 at 17:35 PM EST
GC-Global Capital Corp. Announces Its Investee Company, Marathon Mortgage Corporation Has Received CMHC Lenders Status

Toronto, Canada--(Newsfile Corp. - February 8, 2013) - GC-Global Capital Corp. (TSXV: GDE.A) is pleased to announce that its investee company, Marathon Mortgage Corporation (“MMC”) has received its CMHC (Canada Mortgage and Housing Corporation) lenders status as well as completed servicing agreements with two major Canadian financial institutions. As outlined in its December 2011 press release, Global Capital is one of the founding shareholders of Marathon Mortgage Corporation (“MMC”), a residential mortgage origination, sales and servicing business. MMC brings together the former management team of First Marathon Mortgage Corp. which at the time of its sale in 2002 was servicing approximately $4 Billion in mortgages. Marathon’s management team and business operations are in place and ready to ramp up operations beginning in early, 2013.Through the MMC management team’s alliances with major financial institutions and mortgage brokerage firms, MMC’s goal is to become one of the most reliable residential and commercial mortgage lenders in Canada, providing competitive mortgage products, competitive mortgage interest rates, competitive mortgage terms and reliable service through quick turnaround service to its borrowers and broker partners. MMC will underwrite prime-insured and conventional residential and commercial mortgages that will be sold to mortgage investors, such as banks or trust companies, co-operatives, securities firms and insurance companies. MMC expects to retain the majority of servicing for these mortgages.

MMC’s Board of Directors includes:

-Stuart Henry, Chairman of MMC - former SVP of Finance Bank of Montreal and director of First Marathon Inc.
-Harold Kennedy, President and CEO of MMC
-Michael MacKenzie - former Superintendent of Financial Institutions Canada
-Hank Cunningham - Fixed Income Strategist Odlum Brown Limited
-Chris Kauffman

Global Capital’s acquisition of MMC Preferred and Common Shares was the lead order in a financing of MMC which raised $7,801,000. The Preferred Shares are expected to yield a cumulative annual dividend equal to 8% of the issue price and the Preferred Shares are also redeemable at a redemption price equal to the issue price. It is expected that MMC will redeem all of the Preferred Shares within the next four years. Global originally subscribed for and purchased 2,750,000 Preferred Shares and 2,138,890 Common Shares of MMC for a total subscription price of $2,750,213.89.

As consideration for being the lead order on the MMC financing, Global negotiated and entered into a Put/Call arrangement pursuant to which Global may purchase, or MMC may require Global to purchase, an additional 1.2 million Preferred Shares and 933,333 Common Shares for an aggregate purchase price of $1,200,093. The Put/Call arrangement is exercisable by either party and expires November 18, 2015.

Global Capital’s CEO, Jason Ewart, commented “The receipt of CMHC lenders status for Marathon represents a significant milestone in the company’s development. We look forward to providing our shareholders with updates on Marathon’s operations during 2013. Given the track record of their previous company, First Marathon Mortgage Corp., we believe that this management team can once again create a leading national mortgage company.”

About Global Capital

Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global’s website at www.gcglobalcapital.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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