Frontenac Mortgage Investment Corporation (FMIC) has released an announcement regarding certain issues and questions raised about third-party appraisal reports on a property that secures a large development loan. In light of these concerns, FMIC has decided to escrow subscription funds received for its monthly sale of common shares, which was scheduled to close on July 5th. Additionally, the issuance of the Investment Entity Review Report by MNP SENCRL, SRL/LLP, for the valuation date of May 20, 2023, will be pending review and resolution of the same matter. FMIC has stated that current booked trades pending July 5, 2023, settlement may be reversed upon request.
The decision to escrow the subscription funds and review the appraisal reports stems from issues and questions brought to FMIC’s attention regarding the property’s valuation. The company is taking these steps to ensure a thorough examination and resolution of the matter at hand.
FMIC is dedicated to addressing these concerns transparently and responsibly. It will provide further information as it becomes available, enabling stakeholders and investors to stay informed about the ongoing developments. By prioritizing the resolution of these issues, FMIC aims to maintain the integrity of its operations and uphold the trust of its shareholders.
While this announcement may cause some uncertainty, it is essential to ensure thorough due diligence in matters related to property valuations. FMIC’s decision to escrow subscription funds and review the third-party appraisal reports demonstrates its commitment to safeguarding the interests of its investors. The company acknowledges the importance of accurate valuations in providing reliable investment opportunities.
Investors who have made trades pending the July 5, 2023 settlement are advised to monitor the situation closely. FMIC will consider reversing these trades if requested, taking into account the pending review and resolution of the issues and questions surrounding the appraisal reports.
As FMIC works towards resolving these matters, it remains committed to providing reliable investment services and maintaining transparency with its stakeholders. The company understands the significance of accurate appraisal reports in assessing the value and security of loans and investments. By taking the necessary steps to address the concerns raised, FMIC demonstrates its dedication to maintaining high standards in its operations.
It is important to note that despite the news regarding the escrowing of funds and the review of appraisal reports, FMIC continues to operate and provide its services. The company remains focused on fulfilling its commitments while ensuring the integrity and reliability of its investments.
In conclusion, FMIC’s decision to escrow subscription funds and review third-party appraisal reports highlights its dedication to addressing concerns and upholding the trust of its stakeholders. By undertaking a thorough examination of the issues at hand, FMIC aims to protect the interests of its investors and maintain the integrity of its operations. The company will provide updates as the situation progresses, keeping stakeholders informed about any developments.
