CALGARY, Alberta, Dec. 19, 2024 (GLOBE NEWSWIRE) -- The Western Investment Company of Canada Limited (TSXV: WI) ("Western" or "WICC"), today closed the over-subscribed private placement announced on August 30, 2024, and upsized on September 26, 2024, in its entirety following the receipt of $1.1 million that was outstanding. Unless otherwise indicated, financial figures are expressed in Canadian dollars.
On August 30, 2024 WICC announced a private placement of units (“Units”) that was subsequently upsized on September 26, 2024 to $25 million, with an additional $5 million over-allotment at Western’s option, for aggregate gross proceeds of $30 million (the “Private Placement”). In aggregate, WICC has issued 75,000,000 Units in the Private Placement for gross proceeds of $30 million (including the 2,750,000 Units issued in today's closing).
Each Unit of the Private Placement consisted of one common share in WICC (“Common Share”) and one warrant to purchase a Common Share (each a “Warrant“), with each Warrant exercisable to purchase one additional Common Share for a period of five years from the closing date at an exercise price of $0.47 per share. The Common Shares and Warrants issued in the Private Placement are subject to a 4-month hold period from the closing date. See "Legal Disclaimers regarding Private Placement" below for further information.
The proceeds from the Private Placement 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 Private Placement remains subject to the final approval 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 TSX Venture Exchange under the symbol WI.
For more information on Western, please visit its website at www.winv.ca.
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CONTACT INFORMATION - The Western Investment Company of Canada Limited
Stacey Cross, Chief Financial Officer (scross@winv.ca)
Advisories
This document contains forward-looking statements. More particularly, this document contains statements concerning the anticipated use of proceeds of the Private Placement. Readers are cautioned that the foregoing list of statements should not be construed as exhaustive.
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.
This news release is not an offer of the securities for sale in the United States. The securities described in this news release have not been registered under the United Securities Act of 1933 or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933) absent registration or an exemption from registration. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state in which where such offer, solicitation or sale would be unlawful.
"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."
