CALGARY, March 1, 2019 /CNW/ - Mainstreet Equity Corp.
("Mainstreet" or the "Corporation") (TSX: MEQ) today announced
that all of the holders ("Holders") of the Corporation's remaining
outstanding incentive stock options ("Options"), each of which is a
director or officer of the Corporation, have exercised their
Options, at an exercise price of $5.51 per common share of the Corporation
("Common Share") in accordance with the terms of Mainstreet's stock
option plan (the "Option Plan"). As a result of such exercise,
Mainstreet has no options issued or outstanding, and as the Option
Plan has expired, no further Options may be issued until such time
as the Corporation approves a new stock option plan.
Under the Option Plan, the Holders may elect to exercise their
Options, or alternatively may jointly elect with the Corporation to
receive a cash settlement, whereby they may receive the "in the
money value" of the Option in lieu of purchasing the number of
Common Shares purchasable under the Option (a "Cash Settlement").
Each Holder elected to receive a Cash Settlement in respect of a
portion of their Options and to exercise the remainder for Common
Shares. Based on the closing price of the Common Shares on
the Toronto Stock Exchange ("TSX") on February 28, 2019, being $45.75, the Corporation paid an aggregate amount
of $ 10,968,426.05 to the Holders
pursuant to the Cash Settlement election and issued an aggregate of
549,425 Common Shares, representing 6.22% of the issued and
outstanding Common Shares. Following such issuance, the Corporation
has 9,381,730 Common Shares issued and outstanding.
Bob Dhillon, Chief Executive
Officer of Mainstreet added, "Given we believe the current trading
value of the common shares of Mainstreet is significantly below
what we believe is the underlying net asset value of the Common
Shares, Management is of the view that jointly electing to use the
Cash Settlement alternative under the Option Plan to pay Option
holders the "in the money value" for a portion of the exercised
Options is a prudent use of available cash of the Corporation".
In connection with the exercise of the Options, Navjeet (Bob) Dhillon, of 305 – 10th
Avenue SE, Calgary, Alberta
T2G 0W2, Chief Executive Officer and a director of Mainstreet, (who
currently has direct and indirect ownership or control over
3,815,700 Common Shares, representing 43.2% of the outstanding
Common Shares) acquired 501,300 Common Shares, resulting in Mr.
Dhillon directly and indirectly owning or controlling 4,317,000
Common Shares which represents 46% of the outstanding Common Shares
following the exercise of the Options. Mr. Dhillon paid
$5.51 per Common Share acquired for
aggregate proceeds to the Corporation of $2,762,163.
A copy of Mr. Dhillon's Early Warning Report under National
Instrument 62-103 - The Early Warning System and Related Take-Over
Bid and Insider Reporting Issues will be available on SEDAR at
www.sedar.com or by contacting Karen
Engel at (403) 215-6070. Mr. Dhillon has acquired the Common
Shares solely for investment purposes and has no present intention
to increase his beneficial ownership of or control over any of the
Corporation's securities.
Forward-Looking Information
Certain statements contained herein constitute
"forward-looking statements" as such term is used in applicable
Canadian securities laws. These statements relate to, among other
things, Mainstreet's believe that the current trading price of the
Common Share is below the net asset value of the Common Shares and
that the Cash Settlement Alternative is a prudent use of the
Corporation's funds. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions of future events or
performance (often, but not always, using such words or phrases as
"expects" or "does not expect", "is expected", "anticipates" or
"does not anticipate", "plans", "estimates" or "intends", or
stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved) are not
statements of historical fact and should be viewed as
forward-looking statements.
Such forward-looking statements are not guarantees of future
events or performance and by their nature involve known and unknown
risks, uncertainties and other factors, including those risks
described in the Corporation's Annual Information Form under the
heading "Risk Factors" including the current value of the Common
Shares is not significantly below the net asset value of the Common
Shares and that may cause the actual results, performance or
achievements of the Corporation to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Although the Corporation has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, other factors may cause
actions, events or results to be different than anticipated,
estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future
events could vary or differ materially from those anticipated in
such forward-looking statements. Accordingly, readers should not
place undue reliance on forward-looking statements contained
herein.
Forward-looking statements are based on management's beliefs,
estimates and opinions on the date the statements are made, and the
Corporation undertakes no obligation to update forward-looking
statements if these beliefs, estimates or opinions should change,
except as required by applicable securities laws or as otherwise
described therein.
SOURCE Mainstreet Equity Corporation