Mosaic Capital Corporation
TSX VENTURE : MZ
TSX VENTURE : MZ.PR.A

Mosaic Capital Corporation

May 19, 2011 18:45 ET

Mosaic Capital Corporation Announces Commencement of Normal Course Issuer Bid and Market Purchases of Preferred Securities

CALGARY, ALBERTA--(Marketwire - May 19, 2011) - Mosaic Capital Corporation (TSX VENTURE:MZ)(TSX VENTURE:MZ.PR.A) ("Mosaic") announced today that it has obtained the approval of the TSX Venture Exchange (the "TSXV") to commence a normal course issuer bid (the "Bid") for its common shares (the "Shares") (Symbol: MZ) beginning on May 25, 2011 and that it will also commence market purchases of its preferred securities ("Preferred Securities") (Symbol: MZ.PR.A). Mosaic believes that if the market price of the Shares or Preferred Securities does not fully reflect their underlying value that the purchase of such securities could be an attractive and appropriate use of corporate funds in light of potential benefits to remaining shareholders and holders of Preferred Securities.

As of the date hereof, 8,137,889 Shares are issued and outstanding. Under the rules of the TSXV, Mosaic may acquire up to 406,894 of its Shares under the Bid, representing approximately 5% of the issued and outstanding Shares as of the date hereof. Subject to renewal of the Bid, the Bid for the Shares will terminate on the earlier of May 26, 2012 and the date on which Mosaic has acquired the maximum number of Shares permitted under the Bid. There is no set date upon which purchases of Preferred Securities are intended to cease. Such purchases will be effected through the facilities of the TSXV in accordance with the indenture governing the Preferred Securities.

Mosaic may from time to time acquire its Shares and Preferred Securities at the then current market price through the facilities of the TSXV. All Shares and Preferred Securities purchased will be cancelled. The actual number of Shares and Preferred Securities purchased, if any, the time of the purchases and the prices at which such securities are purchased will depend on future market conditions.

Market purchases of both Shares and Preferred Securities will be conducted by Raymond James Ltd.

Mosaic intends to enter into a pre-defined plan with its designated broker to allow for the purchase of Shares and Preferred Securities at times when Mosaic ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise.

ABOUT MOSAIC CAPITAL CORPORATION

Mosaic is a Calgary based investment company that owns a portfolio of established businesses that generate strong cash flow from their operations in niche markets. Mosaic's portfolio businesses operate in the printing, oil and gas service, technology and real estate industries.

Mosaic continues to acquire and invest in businesses that have attributes similar to its existing businesses. It also considers limited capital investments in start up companies, distressed asset situations, reorganizations of businesses, investment fund management, private equity, venture capital, or pursuing various other investment related opportunities.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. Forward-looking statements relate to, among other things, Mosaic's future purchase and cancellation of Shares and Preferred Securities under its normal course issuer bid and through open market purchases (as the case may be), the duration of Mosaic's normal course issuer bid in respect of its Shares, other matters relating to Mosaic's normal course issuer bid, and general market and business conditions. Many of these statements can be identified by words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words. Mosaic believes the expectations reflected in such statements are reasonable but no assurance is given that such expectations will be correct. All forward-looking statements are based on management's beliefs and assumptions based on information available at the time the assumption was made and on its experience and perception of historical trends, current conditions and expected further developments as well as other factors deemed appropriate in the circumstances. The forward-looking statements made in this press release are also based on certain assumptions by management in respect of Mosaic's normal course issuer bid and future market conditions for its securities.

Contact Information

  • Mosaic Capital Corporation
    John Mackay
    Executive Chairman and Chief Executive Officer
    (403) 218-6500