2012-10-20 02:36:18 -
Calgary, Alberta - October 19, 2012. Mosaic Capital Corporation ("Mosaic") (TSX-V Symbols: M and M.PR.A) is pleased to announce that the cash distribution for the month of October 2012 in respect of its preferred securities will be paid on November 15, 2012 to all holders of preferred securities of record as of October 31, 2012. The October distribution will be $0.0833 per preferred security. For Canadian income tax purposes the monthly distribution in respect of the preferred securities is considered interest income in the hands of the recipient.
Mosaic also announces that it has re-filed its management's discussion and analysis for the year ended December 31, 2011 ("2011 MD&A") as well as the for the three months ended March 31, 2012
and for the six months ended June 30, 2012 (collectively, the "MD&As"). As has been previously disclosed in the MD&As, in connection with the audit of the annual consolidated financial statements of Mosaic for the year ended December 31, 2011 (the "Annual Financial Statements") there was a change in classification of the preferred trust units of Mosaic Diversified Income Fund (the "Fund" - predecessor to Mosaic) from equity to debt under International Financial Reporting Standards (IFRS), as well as a change in classification of the distributions on the preferred trust units of the Fund from distributions charged directly to equity to interest expense (the "Reclassification"). The Reclassification only relates to the four month period of fiscal 2011 when the business of Mosaic was being carried on through the Fund until it reorganized into a corporation effective May 1, 2011. For the remainder of fiscal 2011, and as is the current accounting practice of Mosaic, the preferred securities of Mosaic are accounted for as equity with payments thereon treated as dividends.
The financial impact of the Reclassification has been reflected in the Annual Financial Statements and the subsequently filed interim financial statements. However certain of the consequential changes resulting from the Reclassification were not carried through to the MD&As. In particular, certain of the shareholders'/unitholders' per share amounts (both basic and diluted) respecting net income from continuing operations before tax, and in respect of income (loss) and comprehensive income (loss), were overstated in respect of certain periods. These amounts were principally set forth in the 2011 MD&A in the table of selected financial information for Mosaic under the heading "Financial Review and Discussion of Results" and in the table of quarterly financial information for Mosaic under the heading "Summary of Quarterly Results". The MD&As have been amended and re-filed in order to correct these and other inconsistencies and errors in the MD&As.
To add additional clarity concerning the financial statement impact of the Reclassification, Mosaic has included an additional note within each of its first and second quarter interim consolidated financial statements for the periods as at and ended March 31, 2012 and June 30, 2012 (the "2012 Interim Financial Reports") which identifies the changes made to the affected comparative 2011 financial statement amounts resulting from the Reclassification. Consequently, Mosaic has re-filed its 2012 Interim Financial Reports.
The Reclassification has no impact on Mosaic's balance sheets filed for the period as at and ended December 31, 2011 and subsequent periods, nor has it had a material impact on Mosaic's non-IFRS financial metrics.
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:
Vice President, Investor Relations
Mosaic Capital Corporation
400, 2424 - 4th Street SW
Calgary, AB T2S 2T4
T: (403) 270-4658
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