CALGARY, Alberta, Dec. 05, 2024 (GLOBE NEWSWIRE) -- The Western Investment Company of Canada Limited (TSXV: WI) ("Western" or "WICC") today announced the closing of its previously announced rights offering (the "Rights Offering") for aggregate gross proceeds of $6,296,946.
The net proceeds of the Rights Offering are expected to be used towards: (i) the acquisitions of new portfolio companies in the insurance sector; (ii) general and administrative expenses; (iii) capital expenditures, including increasing its interest in Fortress Insurance Company to 100% as previously announced; and (iv) unallocated capital to be available for future growth.
The Corporation received 14,757,565 initial subscriptions for common shares in the capital of WICC ("Common Shares") pursuant to the basic subscription privilege, and 984,800 additional subscriptions for Common Shares pursuant to the additional subscription privilege.
“We recognize that the strike currently affecting Canada Post impacted some investors who were interested in exercising their rights,” said Scott Tannas, Western’s President and Chief Executive Officer. “We are grateful to those investors who participated in the Rights Offering despite the strike’s impact on the delivery of nominations to our transfer agent.”
Following the completion of the Rights Offering, WICC has 71,144,043 Common Shares outstanding.
To the knowledge of WICC, after reasonable inquiry, directors, officers and insiders of WICC purchased 785,500 Common Shares under their basic subscription privilege and 892,000 Common Shares under the additional subscription privilege for an aggregate of 1,677,500 Common Shares purchased under the Rights Offering, representing total subscription proceeds of $671,000. To the knowledge of WICC, after reasonable inquiry, no person became a new shareholder holding more than 10% of the Shares upon closing of the Rights Offering.
The participation in the Rights Offering by certain "related parties" of WICC, namely, directors, officers and 10% shareholders of Corporation, constitutes a "related party transaction", as such terms are defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation is relying on an exemption from the formal valuation and minority approval requirements of MI 61-101 as the fair market value of the participation in the Rights Offering does not exceed 25% of the market capitalization of WICC.
The Rights Offering remains subject to the final acceptance of the TSX Venture Exchange.
About The Western Investment Company of Canada Limited
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian businesspeople, and dedicated to building and maintaining ownership in successful Western Canadian companies, and helping them to grow. Western's shares are traded on the Exchange under the symbol WI.
For more information on Western, please visit its website at www.winv.ca.
To add yourself to our email news alert subscription please visit this link.
CONTACT INFORMATION - The Western Investment Company of Canada Limited
Scott Tannas President and Chief Executive Officer (403) 652-0408 stannas@winv.ca
Advisories
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future results and plans for Western and its associated companies, acquisitions, and intended uses of funds from the Rights Offering. Statements containing the words: 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates' and any other words of similar meaning are forward-looking. All statements included herein involve various risks and uncertainties because they relate to future events and circumstances beyond Western's control.
The forward-looking statements are based on certain key expectations and assumptions made by Western, including expectations and assumptions concerning the ability of Western to successfully implement its strategic plans and initiatives.
Although Western believes that the expectations and assumptions on which the forward-looking statements made by Western are based are reasonable, undue reliance should not be placed on the forward-looking statements because no assurance can be provided that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the ability of management to execute its business strategy, and the impact of general economic conditions in Canada and the United States. A description of additional assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Western's disclosure documents on the SEDAR+ website at www.sedarplus.ca.
The forward-looking statements contained in this news release are made as of the date hereof and Western undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Readers should also refer to the forward-looking statements and associated assumptions and risk factors contained in Western's October 7, 2024 news release regarding the Rights Offering.
"Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
