Mainstreet Equity Corp. announces substantial issuer bid

About this update from Mainstreet Equity Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, Dec. 9 /CNW/ - Mainstreet Equity Corp. (the "Corporation")\n(TSX:MEQ) announces today its intention to make a substantial issuer bid (the\n"Offer") pursuant to which the Corporation will offer to purchase for\ncancellation up to 4,000,000 of its outstanding common shares ("Common\nShares") from shareholders ("Shareholders") at a price of $6.25 per Common\nShare or an aggregate amount of up to $25,000,000, being a premium of\napproximately 30% to the closing price of the Common Shares on the Toronto\nStock Exchange on December 9, 2008. If more than 4,000,000 Common Shares are\ntendered to the Offer, Mainstreet will purchase the Common Shares on a pro\nrata basis according to the number of Common Shares deposited, or deemed to be\ndeposited under the terms of the Offer, by the depositing Shareholders with\nfractions rounded to the nearest whole Common Share. The Offer is not\nconditional on any minimum number of Common Shares being deposited. The\npurchase of Common Shares will be financed from existing cash and, to the\nextent required, proceeds from mortgage financing on real estate properties\nwholly-owned by the Corporation.\n\n\nAs of the date hereof, there are 13,873,473 Common Shares outstanding\nand, accordingly, the Offer is for up to approximately 28.8% of the\noutstanding Common Shares on a non-diluted basis or 28.2% of the Common Shares\non a fully diluted basis. The Offer is subject to various conditions typical\nof transactions of this nature, including obtaining any regulatory exemption\nrulings that may be required. It is anticipated that the offer to purchase and\nissuer bid circular and other related documents (the "Offer Documents"),\ncontaining the terms of the Offer and the instructions for tendering Common\nShares, will be mailed to Shareholders and filed with applicable securities\nregulators on or about December 15, 2008. The Offer will remain open for\nacceptance for at least 35 days after the date of commencement, unless\nwithdrawn or extended by the Corporation.\n\n\nThe board of directors of the Corporation (the "Board") believe that the\npurchase of Common Shares under the Offer represents an effective and\ndesirable use of the Corporation's available resources given the current\ntrading price of the Common Shares on the Toron...

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