CALGARY, Dec. 6, 2016 /CNW/ - Mosaic Capital Corporation
("Mosaic") (TSX-V Symbols: M, M.PR.A and
M.DB) is pleased to announce that its board of directors has
approved a quarterly dividend on Mosaic's common shares (TSX-V
Symbol: M) of $0.10 per share (or
$0.40 per share on an annualized
basis). This dividend will be paid December
30, 2016 to holders of record on December 15, 2016. The objective of paying a
dividend is to allow common shareholders of Mosaic to participate
in our free cash flow while ensuring Mosaic retains sufficient
capital to preserve its strong balance sheet, continue its
acquisition strategy and fund organic growth.
Mosaic's dividend on its common shares is designated to be an
eligible dividend for purposes of the Income Tax Act
(Canada) and any similar
provincial or territorial legislation. An enhanced dividend tax
credit applies to eligible dividends paid to Canadian
residents.
Dividend Reinvestment Plan
Mosaic also announces that it has adopted a Dividend
Reinvestment Plan (the "Plan"). The Plan will take effect
beginning with the December dividend, with the dividend to be paid
on December 30, 2016 to shareholders
of record at the close of business on December 15, 2016. Eligible shareholders who wish
to participate in the Plan must enroll in the Plan sufficiently in
advance of the December 15, 2016
record date, as described in further details below.
The Plan provides eligible shareholders of Mosaic with an
opportunity to receive, by reinvesting the quarterly cash dividends
declared payable on their common shares of Mosaic, additional
common shares of Mosaic. The Plan allows Mosaic to elect to have
the common shares of Mosaic purchased on the open market or issued
from treasury with or without a discount of up to 3%.
Currently, common shares of Mosaic purchased on the open market
or issued from treasury will not be purchased at a discount. Such
discount may be changed by the board of directors of Mosaic from
time to time.
Registered shareholders who wish to enroll in the Plan must
notify Computershare Trust Company of Canada (the "Plan Agent") by providing
a duly completed enrollment form (the "Enrollment Form"), a
copy of which is attached to Schedule A of the Plan and is
available on Mosaic's website at www.mosaiccapitalcorp.com.
Beneficial shareholders who hold their common shares through one
or more nominees and wish to enroll in the Plan should contact
their broker, investment dealer, financial institution or other
nominee through which their common shares are held to provide
appropriate instructions and to ensure any deadlines or other
requirements that such broker or nominee may impose or be subject
to are met. These instructions will be collected and aggregated
within the brokerage system and ultimately communicated to the Plan
Agent.
To be eligible to participate in the Plan, shareholders must be
resident in Canada. Unless
otherwise announced by Mosaic, a shareholder who is resident in any
jurisdiction outside of Canada may
not participate in the Plan.
Mosaic reserves the right to limit the amount of equity
available under the Plan on any particular dividend payment date.
No assurances can be made that common shares will be made available
under the Plan on a quarterly basis, or at all. Accordingly,
participation may be prorated in certain circumstances. If on any
dividend payment date Mosaic determines not to elect to have common
shares of Mosaic purchased on the open market or issued from
treasury, the availability of common shares is prorated in
accordance with the terms of the Plan, or for any other reason a
dividend cannot be reinvested under the Plan, the participants will
be entitled to receive from Mosaic the full amount of the regular
dividend for each common share in respect of which the dividend is
payable but cannot be reinvested under the Plan.
All administrative costs of the Plan will be paid by Mosaic.
Beneficial shareholders should consult the brokers, investment
dealers, financial institutions or other similar nominees through
which their common shares are held to confirm whether commissions,
service charges or similar fees are payable.
Participation in the Plan does not relieve shareholders of any
liability for taxes that may be payable in respect of dividends
that are reinvested in common shares under the Plan. Shareholders
should consult their tax advisors concerning the tax implications
of their participation in the Plan having regard to their
particular circumstances.
A complete copy of the Plan is available on Mosaic's website at
www.mosaiccapitalcorp.com or by contacting Mosaic directly at the
number indicated below, or on the Plan Agent's website at
www.computershare.com/investorcentrecanada. Shareholders should
carefully read the complete text of the Plan before making any
decisions regarding their participation in the Plan.
Retention of Hybrid Financial Ltd.
Mosaic is also pleased to announce that it has retained Hybrid
Financial Ltd. ("Hybrid") to provide Mosaic with investor
relations services, including marketing, distribution and business
development services. Under the terms of the agreement with Hybrid,
Mosaic will pay a monthly retainer fee of $10,000 and the term of the agreement shall begin
on December 1, 2016 and continue for
3 months ending February 28, 2017.
The agreement may be terminated by Mosaic upon 10 days' written
notice.
Hybrid was co-founded by Steve
Marshall and Alexandre Cote
in early 2011 to provide retail-focused origination and
distribution services to the investment management industry
throughout North America. Hybrid
is based in Toronto, Ontario and
also has an office in Montreal,
Quebec. Neither Hybrid nor any of its directors and officers
own any securities of Mosaic.
Retention of Integral Wealth Securities Limited
Additionally, Mosaic is pleased to announce that it has retained
Integral Wealth Securities Limited ("Integral") to provide
market-making services in accordance with TSX Venture Exchange
("TSXV") policies. Integral will trade securities of Mosaic
on the TSXV for the purposes of maintaining an orderly market of
Mosaic's securities.
In consideration of the services provided by Integral, Mosaic
will pay integral a monthly cash fee of $6,000. Integral will not receive shares or
options as compensation. However, Integral and its clients may have
or may acquire a direct interest in the securities of Mosaic.
Mosaic and Integral are unrelated and unaffiliated entities;
Integral is a member of the Investment Industry Regulatory
Organization of Canada
("IIROC") and can access all Canadian Stock Exchange and
Alternative Trading Systems. The capital and securities required
for any trade undertaken by Integral as principal will be provided
by Integral.
The agreement will have a minimum term of 12 months, subject to
the one-time right of Mosaic to terminate the agreement after three
months. Following the 12-month anniversary of the agreement, Mosaic
may terminate the agreement on 30 days notice.
Established in 2003, Integral is a private, independent, IIROC
licensed investment dealer headquartered in Toronto with offices in Calgary, Vancouver, Ottawa, Nanaimo (B.C.) and Sidney (B.C.). Integral's capital markets
group provides financing, strategic advisory, and market making
services to emerging companies in three principal sectors: oil and
gas, metals and mining and diversified industries.
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of
established businesses which span a diverse range of industries and
geographies. Mosaic's strategy is to create long-term value for its
shareholders through accretive acquisitions, long-term portfolio
ownership, sustained cash flows and organic portfolio growth.
Mosaic achieves its objectives by maintaining financial discipline,
acquiring businesses at attractive valuations, performing extensive
acquisition due diligence, utilizing optimal transaction
structuring and working closely with subsidiary businesses after
acquisition.
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.
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 news
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, forward-looking
statements in this news release include, but are not limited to:
the payment of the dividend on December 30,
2016; the reinvestment of quarterly dividends on common
shares of Mosaic; the current discount under the Plan with respect
to common shares of Mosaic purchased on the market or issued from
treasury; the procedures of the Plan Agent with respect to the
collection of instructions from shareholders; and the services to
be provided by Hybrid and Integral. 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. Some of the assumptions
made by Mosaic, upon which such forward-looking statements are
based include, but are not limited to: Mosaic will be able to
obtain all required regulatory approvals; future market conditions
will not be materially different than anticipated by Mosaic; there
will be no material changes to government and environmental
regulations affecting Mosaic or its operations; and the business
operations of the operating businesses of Mosaic will continue on a
basis consistent with prior years.
A number of factors could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements, including, but not limited to: prevailing economic
conditions; unexpected changes in the financial markets (including
in the trading price of the securities of Mosaic); and changes in
the general economic and business conditions of one or more of
Mosaic and its subsidiaries. Should any of the risks or
uncertainties facing Mosaic and its subsidiaries materialize, or
should assumptions underlying the forward-looking statements prove
incorrect, actual results, performance, activities or achievements
could vary materially from those expressed or implied by any
forward-looking statements contained in this news release. Readers
are cautioned that the foregoing list of risks is not exhaustive.
Additional information on these and other factors that could affect
the operations or financial results of Mosaic and its subsidiaries
are included in Mosaic's annual information form for the year ended
December 31, 2015, a copy of which is
available under Mosaic's profile on SEDAR (www.sedar.com).
Although Mosaic believes that the expectations represented by
any forward-looking-statements contained herein are reasonable
based on the information available to it 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 statements herein
contained are made as of the date of this news 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.
SOURCE MOSAIC CAPITAL CORPORATION