Fairfax closes $150M investment in Mosaic Capital

Mosaic Capital Corporation (TSX-V: M) has closed previously announced $150 million financing with Fairfax Financial Holdings Limited (TSX: FFH, FFH.U).

The financing consists of $100 million aggregate principal amount of 6% senior preferred securities, $50 million aggregate principal amount of 5% senior secured debentures, and common share purchase warrants entitling Fairfax to acquire up to 17,026,106 common shares of Mosaic at a price of $8.81 per common share until January 26, 2024. If the warrants were fully exercised, Fairfax would own approximately 66% of the currently issued and outstanding common shares of Mosaic.

Mosaic has granted to Fairfax the right to two board nominations and pro-rata financing participation rights. These financing rights provide Fairfax with a pre-emptive right to participate in future common share issuances by Mosaic up to the extent necessary for Fairfax to maintain its partially diluted common share ownership position.

photo credit: Mosaic Capital

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.