Mosaic Capital Corporation

May 02, 2011 09:00 ET

Mosaic Capital Corporation Acquires First West Properties Ltd. Pursuant to a Plan of Arrangement

CALGARY, ALBERTA--(Marketwire - May 2, 2011) - Mosaic Capital Corporation ("Mosaic") is issuing this press release pursuant to the early warning requirements of applicable securities laws in Canada with respect to First West Properties Ltd. ("First West").

Mosaic has acquired ownership and control of 19,848,617 common shares of First West ("Common Shares"), representing 100% of the outstanding Common Shares. The Common Shares were acquired in connection with the completion of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement") among Mosaic Diversified Income Fund (the "Fund"), its unitholders, First West, its securityholders and Mosaic. Pursuant to the Arrangement the holders of Common Shares exchanged such shares for common shares of Mosaic ("Mosaic Shares") and 10% perpetual preferred securities of Mosaic ("Mosaic Preferred Securities"), created pursuant to an indenture dated as of April 29, 2011 between Mosaic and Olympia Trust Company, on the basis of 0.154 of a Mosaic Share and 0.077 of a Mosaic Preferred Security per Common Share. For purposes of the transaction the Mosaic Shares were valued at $5.00 per share and the Mosaic Preferred Securities were valued at $10.00 per security.

The Common Shares are not listed for trading on any market and were acquired pursuant to the Arrangement to effect the combination of the businesses of First West and the Fund under Mosaic by exchanging Common Shares and units of the Fund for Mosaic Shares and Mosaic Preferred Securities. Mosaic may in the future take such actions in respect of its security holdings in First West as it deems appropriate in light of the circumstances.

For additional information, or for a copy of the early warning report filed, or to be filed, by Mosaic in respect of the above-noted transaction, please contact:

John Mackay
Executive Chairman and Chief Executive Officer
Mosaic Capital Corporation

Contact Information

  • Mosaic Capital Corporation
    John Mackay
    Executive Chairman and Chief Executive Officer
    400, 2424 4th Street SW
    Calgary, AB T2S 2T4
    (403) 218-6500