CALGARY, Nov. 4 /CNW/ - Mainstreet Equity Corp. (MEQ-TSX) today announced that certain of its shareholders have engaged Desjardins Securities Inc. to act as the lead agent in connection with a private placement secondary offering of up to 2.7 million common shares of Mainstreet. The offered shares are being sold by entities controlled by or affiliated with Mr. Darrell Cook. Mr. Cook has decided to partially divest of his Mainstreet holdings for personal, family and estate planning reasons. Following the closing of the offering, it is anticipated that Mr. Cook will beneficially own or control approximately 363,100 common shares, representing approximately 4.0% of Mainstreet's outstanding common shares. In addition, Mr. Sohan Jeerh who currently owns approximately 14% of Mainstreet's outstanding common shares will also participate in the offering. Following the closing of the offering, it is anticipated that Mr. Jeerh will beneficially own or control approximately 425,555 common shares, representing approximately 5.0% of Mainstreet's outstanding common shares. Together, the selling shareholders currently own or control approximately 3.4 million common shares of the company. In commenting on the offering, Mr. Bob Dhillion, President and CEO of Mainstreet said "since we completed the $33 million convertible debenture financing in October 2004, we have been focused on trying to broaden our investor base and improve the liquidity of Mainstreet's securities. This secondary offering is extremely positive for Mainstreet shareholders as it will significantly improve the liquidity of our common shares." The final terms of the offering will be determined at the time of pricing, which is expected to occur within the next two weeks. Closing of the offering is anticipated to occur on or about November 30, 2005. Mainstreet will not receive any proceeds from the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. There can be no assurance that the secondary offering will be completed and the effects it may have on the price of Mainstreet's securities. Mainstreet is a publicly traded real estate company focused on the acquisition, redevelopment, repositioning and management of "mid-market" multi-family residential rental properties across Canada.