Notes to the Consolidated Financial Statements  continued 12 Shareholders’ Equity continued The following table sets forth the particulars of the issued and outstanding shares of the Company: The Company issued 5,753,000 (2002 – nil) common shares through two private placements, at a weighted average price of $14.62 per share for gross proceeds of $84.1 million. On April 10, 2002, the Company completed a rights offering pursuant to which its common shareholders subscribed for 12,301,619 warrants to purchase common shares. A holder of rights was entitled to subscribe for one common share purchase warrant for each 1.25 rights held at a price of $0.05 per warrant. As a result of the warrants having a fair value greater than the subscription price, $10.2 million was charged to the deficit. A corresponding amount, net of issue costs, was recorded under warrants in shareholders’ equity. Each warrant entitles the holder to purchase one common share of the Company at a price of $11.80 per share during a three- month exercise period commencing on June 1 and ending on August 31 in each year from 2002 to 2008, on and subject to certain terms and conditions, and may be exercisable in certain other limited circumstances. The maximum number of warrants available under the rights offering was subscribed by holders of common shares. In connection with the rights offering, the conversion prices of the Company’s outstanding convertible debentures, and the exercise prices of the Company’s outstanding advisory warrants and options, in accordance with the terms of those instruments, were adjusted by a factor of .9667. A total of 4,651,784 (2002 – 1,873,406) share purchase warrants were exercised at $11.80 per share resulting in proceeds to the Company of $54.9 million (2002 – $22.1 million) during 2003. The equity component of the warrants exercised, $3.7 million (2002 – $1.5 million), was transferred to share capital. 60 First Capital Realty Annual Report 2003 (c) Warrants (b) Private Placements of Common Shares Number of Stated Capital Common Shares (thousands of dollars) Issued and outstanding at December 31, 2001 15,377,024 $ 154,499 Acquisitions (notes 3 and 19) 673,630 8,286 Payment of interest on convertible debentures 1,209,657 14,205 Exercise of warrants (c) 1,873,406 23,598 Director compensation 9,000 113 Issue costs, net of income taxes of $310,000 – (518) Issued and outstanding at December 31, 2002 19,142,717 200,183 Private placements of common shares (b) 5,753,000 84,117 Redemption and conversion of 8.5% convertible  debentures 3,875,242 59,300 Acquisitions (note 3) 202,535 2,490 Payment of interest on convertible debentures 1,372,476 18,724 Exercise of warrants (c) 4,651,784 58,604 Exercise of options (d) 112,000 1,428 Issue costs, net of income taxes of $1,136,000 – (1,930) Issued and outstanding at December 31, 2003 35,109,754 $ 422,916