CALGARY, ALBERTA--(Marketwired - Sept. 22, 2016) - The Western Investment Company of Canada Limited ("Western") (TSX VENTURE:WI.P) along with reputable minority equity partners ("Partners") has signed a Letter of Intent to purchase a private Alberta based company ("Seller") that is expected to be the Qualifying Transaction for Western ("Transaction").
There are some necessary legal steps Western must take to ensure the Transaction meets regulatory requirements. This means trading in the common shares of Western has been halted and will not resume until the Transaction is closed. A more comprehensive news release will be issued once the definitive agreement has been executed.
The proposed Transaction is approximately $18 million and will be funded through an equity investment from Western and its Partners and senior and subordinated debt. Western will retain majority control of the Seller and does not anticipate requiring an additional equity financing to complete the Transaction.
Western will disclose details of the Transaction once an agreement has been finalized and conditions have been met including:
||approval of the Transaction by the TSX Venture Exchange;
||approval of the Transaction by Western's Board of Directors and its Partners;
||completion of the financing conditions; and
||satisfactory completion of due diligence.
In the event a final agreement is not reached, Western will notify shareholders.
Scott Tannas, Western's President and CEO said: "Our team is excited to purchase a high quality and stable business that fits squarely within Western's stated objectives. We will work with the Seller to complete the transaction as quickly as possible so we can get to work and grow the business in western Canada."
Shareholders are cordially invited to participate in a teleconference call with Mr. Tannas where he will discuss the Transaction and answer questions from shareholders. The teleconference call is scheduled for:
|Wednesday, September 28, 2016, 8:00 a.m. Mountain Time
|Conference Line: 1-888-789-9572
|Conference ID: 3781063
A recording of the call will be available for a week after the conference call by dialing 1-800-408-3053; passcode: 2414382. Thereafter a recording of the call will be available on Western's website.
About Western (www.winv.ca)
Western is a CPC that has not commenced commercial operations and has no assets other than cash. Except as specifically contemplated in the TSX Venture Exchange's CPC policy, until the completion of its qualifying transaction, Western will not carry on business, other than the identification and evaluation of businesses or assets with a view to completing a proposed qualifying transaction. Western's strategy is to create a diversified portfolio of established Western Canadian businesses and create value through the identification and long-term ownership of companies with sustained cash flows and strong potential for organic growth.
The common shares of Western have traded on the TSX Venture Exchange (under the symbol WI.P) since February 24, 2016.
Completion of the Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested shareholder approval, if necessary. If required, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Western should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.
Further information about Western can be found in its prospectus dated February 1, 2016 and other filings with the Canadian securities regulators, which are available at www.sedar.com.
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Transaction including Western's ability to obtain financing and the necessary approvals, including regulatory approvals. 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. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of 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.sedar.com. Any forward-looking statements are made as of the date of this news release and Western does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.