April 13, 2016 / By: Mainstreet Equity Corp.

Mainstreet announces preliminary results of substantial issuer bid

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CALGARY, April 13, 2016 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the "Corporation"), today announced the preliminary results of its substantial issuer bid (the "Offer") to purchase for cancellation up to 1,200,000 of its outstanding common shares ("Shares"), which expired at 5:00 p.m. (Eastern time) on April 12, 2016.

All of the terms and conditions of the Offer have been complied with and, based upon a preliminary calculation by Computershare Investor Services Inc., the depositary for the Offer, Mainstreet expects to purchase for cancellation an aggregate of 1,200,000 Shares at a price of $36.00 per Share, for a total cost of $43.2 million, excluding fees and expenses related to the Offering.

The Shares expected to be purchased under the Offer represent approximately 11.8% of the Shares issued and outstanding prior to giving effect to the Offer. After giving effect to the Offer, the number of issued and outstanding Shares is expected to be 8,932,915.

Based upon the preliminary calculation, approximately 1,475,179 Shares were properly deposited under the Offer and not withdrawn. As the Offer was oversubscribed, Mainstreet will purchase properly deposited Shares on a pro rata basis following determination of the final results of the Offer, except that "odd lot" deposits (of holders beneficially owning fewer than 100 Shares) will not be subject to pro-ration. Mainstreet expects that depositing shareholders subject to pro-ration will have approximately 81.1% of their deposited Shares purchased by Mainstreet under the Offer. A complete description of the Offer is contained in the offer to purchase and issuer bid circular dated March 7, 2016 and other related documents and schedules, including any amendments thereto, filed with the applicable securities regulatory authorities. The Offer documents are available free of charge on SEDAR at www.sedar.com.

The number of Shares to be purchased under the Offer is preliminary. Mainstreet and the depositary expect that the final determination of the number of Shares purchased for cancellation under the Offer will be made on or before April 22, 2016. Payment for the purchased Shares will be made by the depositary in accordance with the Offer and applicable law. Any Shares deposited and not purchased will be returned to the shareholders promptly by the depositary.

This press release is neither an offer to purchase nor a solicitation of an offer to sell any Shares. The solicitation and the offer to purchase Shares by Mainstreet was made pursuant to the Offer Documents, copies of which are available on SEDAR at www.sedar.com

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, the number of Shares expected to be purchased under the Offer, the results of pro-rationing, if any, the timing for the final determination of Shares deposited under the Offer, the timing for take up and payment of the deposited Shares and the timing of the return of Shares deposited under the Offer that are not taken up and paid for 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 anticipates 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 and 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