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## 8. Share capital (continued): 

## Issue of common shares 

In the year ended December 31, 2011, the Corporation issued: 2,464,800 shares by way of short form prospectus; 531,850 shares as a result of the exercise of warrants; 10,375 shares as a result of the exercise of options; 10,331 shares under the Restricted Share Unit (“RSU”) Plan; and 31,250 shares that vested to Directors under the RSU Plan. During the year ended December 31, 2011, at the Annual General Meeting, shareholders approved conversion of 666,665 non-voting shares to voting shares. 

The Corporation has authorized, issued and outstanding, 19,475,210 voting common shares as at December 31, 2011. 

The warrants were exercisable at $7.50 at any time up to twenty-four (24) months from the date of their issue (October 22, 2009), subject to a mandatory exercise if, at the Corporation’s option, any time after twelve (12) months from their issue, if the volume weighted average price of the voting common shares on the Toronto Stock Exchange is above $9.00 per common share for twenty (20) consecutive trading days. The warrants expired in October. 

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## Dividends 

The following dividends were declared and paid by the Corporation: 

For the first eleven months of 2011, the Corporation declared a dividend of $0.085 per common share, and in December declared a dividend of $0.095 per common share ($18,014,242 in aggregate). For the year ended December 31, 2010, dividends of $12,628,487 were declared. 

## 9. Debt: 

The Corporation has a $30,100,000 secured revolving credit facility with a syndicate of Canadian chartered banks. In June 2011, the Corporation repaid the outstanding balance of $26,200,000 out of proceeds from the sale of MEDIchair and the reduction of its interest in LifeMark Health. The Corporation then drew on a temporarily extended facility of $44,000,000 in October 2011 to fund a further contribution into KMH and the original contribution to Quetico. From funds out of the December 2011 public offering, the Corporation then repaid $37,500,000 of that debt and at December 31, 2011 has $6,500,000 in senior debt outstanding. Interest is payable at the lenders’ prime rate plus 3.0% (6.0% at December 31, 2011). The term out date under the credit facility is December 31, 2012. If monies are drawn, and if an extension is not received by December 31, 2012, the facility will be repaid in thirty-six equal monthly installments commencing January 31, 2013. There are financial covenants under this facility and at December 31, 2011, the Corporation is in compliance with each of the covenants based on a letter received by the Corporation from the 

