Toronto-based Timbercreek Financial Corp. plans to raise gross proceeds of up to C$20 million via a private placement of new common shares priced at C$9.22 apiece.

The mortgage lender may pay certain registered dealers a cash commission of up to 2% of the gross proceeds.

Net proceeds of the offering will be channeled toward repayment of a secured revolving credit facility, and the company will draw on the facility to fund potential investments.