During 2003, 541,252 (2002 – 294,603) common shares were issued to pay interest to holders of the Company’s 7.0% convertible debentures. The Company issued $0.2 million (2002 – $27.6 million) 7.25% convertible debentures in exchange for $0.2 million (2002 – $22.1 million) of the Company’s 7.5% debentures. In addition, 831,224 (2002 – 915,054) common shares were issued to pay interest to holders of the Company’s 7.25% convertible debentures. Effective April 1, 2002, the Company issued $28.16 million in principal amount of 7.25% convertible debentures to Gazit as a result of the First Capital Inc. transaction (note 19). The Company issued an additional $5.73 million in principal amount of 7.25% convertible debentures to Gazit on May 30, 2002 (note 19). On December 1, 2003, the Company paid $14.7 million, representing the principal outstanding by holders on its 7.5% debentures on maturity. Prior to maturity $0.2 million of the debentures were converted to 7.25% convertible debentures, and $0.3 million were purchased and cancelled by the Company. The Company has an unlimited number of authorized preference shares and common shares. The preference shares may be issued from time to time in one or more series, each series comprising the number of shares, designations, rights, privileges, restrictions and conditions which the Board of Directors determines by resolution; preference shares are non-voting and rank in priority to the common shares with respect to dividends and distributions upon dissolution. No preference shares have been issued. The common shares carry one vote each and participate equally in the earnings of the Company and the net assets of the Company upon dissolution. Dividends are payable on the common shares as and when declared by the Board of Directors. 11 Debentures Payable 12 Shareholders’ Equity (thousands of dollars) 2003 2002 Share capital (a)  $ 422,916 $ 200,183 Equity component of convertible debentures (note 10) 337,557 371,330 Warrants (c) 6,591 10,303 Options and deferred share units (d) (e) 298 – Cumulative currency translation adjustment (f) (8,253) 11,697 De fi cit (94,115) (85,757) $ 664,994 $ 507,756 59 First Capital Realty Annual Report 2003 (a) Share Capital