CALGARY, April 13, 2018 /CNW/ - John Mackay, Executive Chairman of Mosaic
Capital Corporation ("Mosaic") (TSX-V Symbols: M and M.DB),
has filed an early warning report in accordance with National
Instrument 62-103 The Early Warning System and Related Take Over
Bids and Insider Reporting Issues, in connection with various
acquisitions of securities of Mosaic (the "Securities").
Mr. Mackay acquired the Securities pursuant to: (i) Mosaic's
Securities Based Compensation Plan and Dividend Reinvestment Plan;
(ii) the conversion of options issued pursuant to a plan of
arrangement under the Business Corporations Act
(Alberta) among Mosaic Diversified
Income Fund, First West Properties Ltd., its securityholders, and
Mosaic; (iii) the issuance of convertible debentures pursuant to a
prospectus supplement dated November 4,
2016 and the accompanying short form base shelf prospectus
dated September 23, 2016 and (iv) the
exercise of subscription privileges issued pursuant to a short form
prospectus dated February 3,
2017.
Mr. Mackay is one of the trustees of M4 Trust, an affiliate of
The Canada West Land & Petroleum Company, Limited ("Canada
West"), and Mr. Mackay may be considered a joint actor in
respect of M4 Trust. M4 Trust is deemed to be a joint actor
in respect of Canada West.
Canada West filed an early warning report on June 27, 2014 disclosing its acquisition of
1,631,692 Common Shares, which, together with the Common Shares
then held by Mr. Mackay, represented approximately 22.6% of the
issued and outstanding Common Shares. Since that early warning
report filed by Canada West, Mr. Mackay has acquired 109,014 Common
Shares, 44,888 options, 65,455 restricted share units
("RSUs") which are convertible into 65,455 Common Shares and
debentures convertible into 11,111 Common Shares. Despite Mr.
Mackay acquiring the Securities, due to Mosaic issuing additional
Common Shares since the early warning report filed by Canada West,
the aggregate percentage of the issued and outstanding Common
Shares held by Mr. Mackay and Canada West has decreased by
approximately 3%, from 22.6% to 19.6%.
Mr. Mackay acquired the Securities as follows: 41,580 Common
Shares at a price of $3.25 per Common
Share through the exercise of options on November 11, 2015; 37,034 Common Shares through
the conversion of RSUs on May 9,
2016; 50,350 options issued on June
1, 2016 pursuant to the Securities Based Compensation Plan,
of which 33,567 options have vested or will vest within 60 days;
100 convertible debentures for an aggregate amount of $100,000 on November 10,
2016; 33,962 options issued on April
12, 2017 pursuant to the Issuer's Securities Based
Compensation Plan, of which 11,321 have vested or will vest within
60 days; 9,635 Common Shares through the conversion of RSUs on
April 10, 2018; 2,858 Common Shares
through the exercise of subscription privileges on February 27, 2017 and 17,907 Common Shares
through Mr. Mackay's participation in Mosaic's Dividend
Reinvestment Plan during fiscal 2017.
Canada West has not changed its securityholdings in Mosaic since
its last early warning report, resulting in the percentage of the
issued and outstanding Common Shares held by Canada West to
decrease by approximately 4.59%, from 19.97% to 15.38%.
The Securities were acquired by the Acquiror for investment
purposes.
SOURCE John Mackay
