April 22, 2016 / By: Mainstreet Equity Corp.

Mainstreet announces final results of substantial issuer bid

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CALGARY, April 22, 2016 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the "Corporation") today announced the final results of its substantial issuer bid (the "Offer") to purchase for cancellation up to 1,200,000 of its issued and outstanding common shares ("Shares"), which expired at 5:00 p.m. (Eastern time) on April 12, 2016.

Based upon a final calculation by Computershare Investor Services Inc., the depositary for the Offer, Mainstreet has taken up and paid for, on a pro rata basis, a total of 1,200,000 Shares at a purchase price of $36.00 per Share, for an aggregate purchase price of $43.2 million, excluding fees and expenses relating to the Offering.

The Shares purchased under the Offer represent 11.8% of the issued and outstanding Shares prior to giving effect to the Offer. After giving effect to the Offer, the number of issued and outstanding Shares will be 8,932.915.

Based upon the final calculation by the depositary, 1,478,179 Shares were properly deposited under the Offer and not withdrawn. As the Offer was oversubscribed, successfully depositing shareholders had approximately 81.0% of their deposited Shares purchased by Mainstreet, other than "odd lot" deposits which were not subject to pro-ration under the Offer.

Payment for the purchased Shares will be effected by the depositary in accordance with the Offer and applicable law. Any Shares deposited and not purchased will be returned to the applicable shareholders of the Corporation promptly by the depositary.

Mainstreet designates the entire amount of the deemed dividend arising from its repurchase of the Shares as an eligible dividend which is an amount equal to $33.26 per Share. Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.

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, timing for effecting payment of the Shares purchased under the Offer and the timing of the return of Shares deposited under the Offer that were not purchased under the Offer. 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" and the failure to realize anticipated benefits of the Offer, 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.

Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding the Corporation's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

SOURCE Mainstreet Equity Corporation