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

Mosaic Capital Corporation

May 09, 2011 19:59 ET

Mosaic Capital Corporation Commences Trading on the TSXV

CALGARY, ALBERTA--(Marketwire - May 9, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES.

Mosaic Capital Corporation ("Mosaic") (TSX VENTURE:MZ)(TSX VENTURE:MZ.PR.A) announces today that its common shares and preferred securities commenced trading on the TSX Venture Exchange under the symbols "MZ" and "MZ.PR.A", respectively.

Mosaic, a reporting issuer in the Provinces of Alberta and British Columbia, recently participated in a statutory plan of arrangement completed on May 1, 2011 (the "Arrangement") whereby, as part of the transaction, Mosaic Diversified Income Fund and First West Properties Ltd. became wholly-owned subsidiaries of Mosaic. Common shares and preferred securities of Mosaic ("Preferred Securities") were issued to former securityholders of Mosaic Diversified Income Fund and First West Properties Ltd. in connection with the Arrangement.

A monthly distribution is presently payable in respect of each Preferred Security at a rate of $0.0833 per month ($1.00 per year). The distribution is characterized as interest and is taxed as income to the holder of the Preferred Security.

The Preferred Securities are issued pursuant to an indenture dated April 29, 2011 between Mosaic and Olympia Trust Company (the "Indenture") which contains the rights, privileges, conditions and restrictions attaching to the Preferred Securities. For full particulars, please see the Indenture filed under Mosaic's profile on SEDAR (www.sedar.com).

This press release is not an offer of the common shares and Preferred Securities for sale in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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.

This news release contains certain statements that may be deemed "forward-looking" statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Such statements may involve, but are not limited to, comments with respect to the terms of the Preferred Securities.The forward-looking statements and information are based on certain key expectations and assumptions made by Mosaic, including: the ability to conduct the specialty commercial real estate business currently conducted by First West Properties Ltd., one of Mosaic's subsidiaries, and its continued ability to acquire and sell properties; the operations of the operating businesses of Mosaic continuing on a basis consistent with prior years; continuation of executive and operating management or replacement of them on competitive terms; maintaining reasonably stable operating and general administrative expenses; and currency, exchange, interest rates and commodity prices being reasonably stable.Although Mosaic believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to realize the anticipated benefits of the Arrangement; the risks associated with the industries in which Mosaic's subsidiaries operate; fluctuations in exchange, interest rates and commodity prices; competition for, among other things, capital, equipment and skilled personnel; the ability to hire and retain staff; the ability to generate sufficient cash flow from operations to meet current and future obligations; health, safety and environmental risks; loss of markets; environmental risks; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws; risks associated with potential future lawsuits and regulatory actions against Mosaic and its subsidiaries; and general economic and business conditions.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on Mosaic's future operations and such information may not be appropriate for other purposes. Mosaic's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Mosaic will derive there from. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Mosaic are and will be included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Mosaic undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

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