Mosaic Capital Corporation Reduces Energy Exposure and Increases Deployable Capital to Approximately $50 Million
Calgary, Alberta (FSCwire) - Mosaic Capital Corporation ("Mosaic") (TSX-V Symbols: M, M.PR.A and M.WT) is pleased to announce the sale of its 70% interest in the business being carried on by Streamline Mechanical L.P. and Streamline Projects L.P. (collectively, "Streamline") for total consideration of $13.7 million, comprised of $10 million in cash on closing and the balance to be paid within 30 days of closing. Signing of the definitive agreement and closing occurred today. Mosaic originally purchased its 70% interest in Streamline in June of 2014 for cash on closing of $13.2 million.
Streamline's business is providing site services to oil sands clients in the Fort McMurray region.
"We are very pleased to be reducing our Oil Sands exposure at this time," commented John Mackay, Executive Chairman and CEO. Mr. Mackay added "When we acquired Streamline, oil was over $100 per barrel and today it trades around $45. We acquired Streamline at a price we felt provided a margin of safety and this sale proves that this strategy helped preserve Mosaic's capital during a severe industry downturn. Today we believe that we are able to better allocate this capital into current opportunities. The disposition of Streamline adds to the relatively large amount of deployable capital available to Mosaic. We continue to have a robust pipeline of opportunities and look forward to announcing our next acquisition."
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
T: (403) 270-4658
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.
This press release may contain forward-looking statements and forward-looking information, including statements and information which reflect current expectations regarding future business opportunities and outlook for Mosaic. 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 and forward-looking information. More particularly, and without limitation, this news release contains forward-looking statements and information concerning the timing of the expected receipt of the balance of the sale proceeds from the disposition of Streamline. The forward-looking statements and information contained herein 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 and information due to such statements and information being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements and forward-looking information 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 and information involve numerous assumptions and known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, projections and other forward-looking statements will not occur. These risks and uncertainties include, but are not limited to, risks related to: counterparties failing to honour their contractual obligations; general economic and political conditions; competition for acquisition candidates; the failure to identify, acquire and develop suitable acquisition targets; and changes in laws or regulations or the interpretation thereof. Should any of the risks or uncertainties facing Mosaic materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results, performance, activities or achievements of Mosaic could vary materially from those expressed or implied by the forward-looking statements or information contained in this document.
Readers are cautioned that the foregoing list of risks is not exhaustive. Additional information on other factors that could affect the operations or financial results of Mosaic and its subsidiaries are included in reports on file with applicable securities regulatory authorities (including, in particular, Mosaic's most recent annual information form) and may be accessed through the SEDAR website (www.sedar.com) under the profile for Mosaic.
Although Mosaic believes that the expectations represented by any forward-looking-statements and forward-looking information contained herein are reasonable based on the information available to it on the date of this document, Mosaic cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. Any forward-looking statements or information herein contained are made as of the date of this press 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.
To view this press release as a PDF file, click onto the following link:public://news_release_pdf/mosaic11042015.pdf
Source: Mosaic Capital Corporation (TSX Venture:M) http://www.mosaiccapitalcorp.com/
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