2013-02-02 00:45:35 -
Calgary, Alberta CANADA, February 01, 2013 /FSC/ - Mosaic Capital Corporation (M - TSX Venture, M.PR.A - TSX Venture), is pleased to announce that its wholly owned subsidiary First West Properties L.P. ("First West") has completed the previously announced sale of its Decade warehouse located at 1820, 31st Street North and its Braman warehouse located at 2930, 9th Avenue North in Lethbridge, Alberta. The two warehouses, comprising 187,200 square feet, have been sold for aggregate consideration of $14.7 million (subject to closing adjustments). This transaction is a continuation of the strategic execution by First West of finding real estate to which it can provide a catalyst for value creation in secondary markets in western Canada.
John Mackay Executive Chairman and
CEO of Mosaic had this to say, "First West continues its track record of purchasing properties that have provided strong returns on our invested capital. With the sale of our Lethbridge warehouses Mosaic will have approximately $35 million of deployable capital to acquire new businesses and expand our existing operations."
Today Mosaic also reports that, in accordance with the terms of Mosaic's Securities-Based Compensation Plan previously approved by its shareholders, $6.02 is the price at which common shares of Mosaic will be valued for purposes of the Mosaic board making subsequent grants of restricted securities units ("RSUs") which are to be settled for common shares in connection with operation of Mosaic's 2013 variable compensation incentive program (the "Incentive Program"). Similarly, $11.41 is the price at which preferred securities of Mosaic will be valued for purposes of the Mosaic board making subsequent grants of RSUs which are to be settled for preferred securities in connection with the Incentive Program.
Under the Incentive Program in early 2014 Mosaic's board of directors will assess both corporate and, for each Incentive Program participant, individual performance for the 2013 fiscal year as measured against performance criteria. Grants of RSUs will then be made by the board subject to such personal and corporate performance criteria being met or exceeded and to an allocation at the election of the grantee between RSUs for Mosaic common shares, Mosaic preferred securities or a combination thereof. The common share and preferred security pricing set forth above in this press release will be utilized in determining the number of RSUs to be issued to a grantee. The RSUs are to be settled on a one-for-one basis for the underlying security, being common shares or preferred securities (as the case may be). The RSUs held by a grantee will vest yearly in three equal tranches starting on the date on which the RSU's are granted in 2014.
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is an investment company based in western Canada that owns a portfolio of established businesses 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:
Mosaic Capital Corporation
400, 2424 - 4th Street SW
Calgary, AB T2S 2T4
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.
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