2012-10-24 23:01:05 -

Calgary, Alberta CANADA, October 24, 2012 /FSC/ - Mosaic Capital Corporation (M - TSX Venture, M.PR.A - TSX Venture), ("Mosaic") announced today that it has obtained a receipt for a final short form prospectus (the "Final Prospectus") which has been filed with the securities regulatory authorities in each of the provinces in Canada, except Quebec, containing the details of Mosaic's previously announced fully marketed short form prospectus offering (the "Offering") of preferred securities of Mosaic (the "Preferred Securities"). Pursuant to the Offering, Mosaic intends to issue a total of 2,065,000 Preferred Securities at a price of $10.55 for gross proceeds of $21,785,750. This represents an increase in the original size of the offering over the $20 million previously announced due

to strong demand.

The Offering is being conducted through a syndicate of agents led by Raymond James Ltd. and including Mackie Research Capital Corporation, Macquarie Capital Markets Canada Ltd., Canaccord Genuity Corp. and Global Securities Corporation (the "Agents"). Mosaic has entered into an agency agreement with the Agents which provides for the terms and conditions governing the Agents' agreement to offer the Preferred Securities for sale to the public. Under this agreement Mosaic has granted the Agents an over-allotment option to offer for sale up to approximately $3.3 million of additional Preferred Securities (being 15% of the amount of Preferred Securities which may be sold under the Offering). Such additional Preferred Securities shall be issued on the same terms and at the same price as those otherwise sold under the Offering. The over-allotment option shall be exercisable in whole or in part by the Agents for a period of up to 30 days following the closing of the Offering.

Closing of the Offering is expected to occur on or about October 30, 2012. The net proceeds of the Offering will be used for future acquisition opportunities that may arise from time to time and for general corporate purposes.

A copy of the Final Prospectus may be obtained on SEDAR at www.sedar.com or by contacting the Agents.

ABOUT MOSAIC CAPITAL CORPORATION

Mosaic is an investment company based in western Canada that owns a portfolio of established businesses with unique competitive advantages that have a history of generating strong sustainable cash flow from their operations. Mosaic's objective is to create long term value for our shareholders and business partners and to have that reflected in our share price. We believe that this is achieved by growing free cash flow per share and retained earnings. We do this by acquiring businesses that we understand at attractive prices and we manage our risk through extensive due diligence, creative transaction structuring and working closely with our businesses after acquisition.



FOR FURTHER INFORMATION PLEASE CONTACT:

Tim Taylor
Vice President, Investor Relations
Mosaic Capital Corporation
400, 2424 - 4th Street SW
Calgary, AB T2S 2T4

T: (403) 270-4658
E: ttaylor@mosaiccapitalcorp.com

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

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States, in any province or territory of Canada or in any other jurisdiction. The securities to be offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any United States state securities laws and may not be offered or sold in the United States absent registration or absent an applicable exemption from the registration requirements of the U.S. Securities Act and applicable United States state securities laws. There shall be no sale of the securities in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or a sale would be unlawful.

Forward-Looking Information

This news release contains forward-looking information and statements within the meaning of applicable Canadian securities laws (herein referred to as "forward-looking statements") that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All information and statements in this press release which are not statements of historical fact may be forward-looking statements. The words "believe", "expect", "intend", "estimate", "anticipate", "project", "scheduled", and similar expressions, as well as future or conditional verbs such as "will", "should", "would", and "could" often identify forward-looking statements. In particular this news release contains forward-looking statements regarding the expected time of the closing of the Offering and the anticipated use of proceeds of the Offering by Mosaic. Such statements or information are only predictions and reflect the current beliefs of management with respect to future events and are based on information currently available to management. Actual results and events may differ materially from those contemplated by these forward-looking statements due to these statements being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature forward-looking statements involve assumptions and known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions and other forward-looking statements will not occur. A number of factors could cause actual results to differ materially from the those expressed or implied by the forward-looking statements, including, but not limited to, unexpected changes in the financial markets (including in the trading price of the securities of Mosaic) prior to closing of the Offering, unexpected regulatory issues, and changes in the general economic and business conditions of one or more of Mosaic and its subsidiaries. Should any risks or uncertainties which face Mosaic and its subsidiaries materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this news release.

Although Mosaic believes that the expectations represented by any forward-looking-statements contained herein are reasonable based on the information available to them on the date of this news release, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. Any forward-looking statement herein contained is made as of the date of this press release and Mosaic does not assume any obligation to update or revise them to reflect new information, events or circumstances, except as required by law.

To view this press release as a webpage, please click on the following link:
www.usetdas.com/pr/mosaic10242012.htm


Source: Mosaic Capital Corporation (TSXV: M - TSXV: M.PR.A)
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