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Mainstreet Equity Corporation announces secondary offering of common shares
Mainstreet Equity Corporation announces secondary offering of common shares.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Nov. 4 /CNW/ - Mainstreet Equity Corp. (MEQ-TSX) today announced\nthat certain of its shareholders have engaged Desjardins Securities Inc. to\nact as the lead agent in connection with a private placement secondary\noffering of up to 2.7 million common shares of Mainstreet. The offered shares\nare being sold by entities controlled by or affiliated with Mr. Darrell Cook.\nMr. Cook has decided to partially divest of his Mainstreet holdings for\npersonal, family and estate planning reasons. Following the closing of the\noffering, it is anticipated that Mr. Cook will beneficially own or control\napproximately 363,100 common shares, representing approximately 4.0% of\nMainstreet's outstanding common shares. In addition, Mr. Sohan Jeerh who\ncurrently owns approximately 14% of Mainstreet's outstanding common shares\nwill also participate in the offering. Following the closing of the offering,\nit is anticipated that Mr. Jeerh will beneficially own or control\napproximately 425,555 common shares, representing approximately 5.0% of\nMainstreet's outstanding common shares. Together, the selling shareholders\ncurrently own or control approximately 3.4 million common shares of the\ncompany.\nIn commenting on the offering, Mr. Bob Dhillion, President and CEO of\nMainstreet said \"since we completed the $33 million convertible debenture\nfinancing in October 2004, we have been focused on trying to broaden our\ninvestor base and improve the liquidity of Mainstreet's securities. This\nsecondary offering is extremely positive for Mainstreet shareholders as it\nwill significantly improve the liquidity of our common shares.\" The final\nterms of the offering will be determined at the time of pricing, which is\nexpected to occur within the next two weeks. Closing of the offering is\nanticipated to occur on or about November 30, 2005. Mainstreet will not\nreceive any proceeds from the offering.\n\nThis press release shall not constitute an offer to sell or the\nsolicitation of an offer to buy nor shall there be any sale of the common\nshares in any jurisdiction in which such offer, solicitation or sale would be\nunlawful. There can be no assurance that the secondary offering will be\ncompleted and the effects it may have on the price of Mainstreet's securities.\n\nMainstreet is a publicly traded real estate company focused on the\...