We are a ‘mortgage investment corporation’ (a “MIC”). Our business is to make a diversified range of residential and other loans secured by first and second mortgages on properties located in British Columbia and Alberta. We earn most of our income from the interest paid on these mortgages. The balance of our income is earned from short-term rental of properties we acquire from foreclosures under mortgages held by us and capital gains when such properties are sold. We distribute all of our annual net income to holders of our Preferred Shares. Under the Income Tax Act (Canada) MICs are not taxed on their net income if it is distributed annually to the MICs’ shareholders. The MICs’ shareholders, however, must pay income tax on the dividends received from the MIC.

Since incorporation our business has grown steadily as a result of our prudent and conservative lending practices. We believe this growth has resulted in acceptable rates of return on our invested capital relative to alternative investment opportunities for our shareholders.