Western Pacific Trust Company

Western Pacific Trust Company

June 09, 2006 14:02 ET

Western Pacific Trust Company Intends to Acquire Creative Planning Corporate Insurance Services Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 9, 2006) - Western Pacific Trust Company (TSX VENTURE:WP) announces that it intends to enter into a formal agreement with the shareholders of Creative Planning Corporate Insurance Services Inc. ("Creative") pursuant to which all of the issued and outstanding shares (the "Creative Shares") of Creative, a wholly owned subsidiary of Creative Planning Holdings Inc. will be transferred to Western Pacific Trust Company ("WPTC") in exchange for common shares of WPTC ("WPTC Shares") as a result of which Creative will become a wholly owned subsidiary of WPTC (the "Acquisition").

Under the terms of a Letter of Intent dated June 6, 2006, executed on behalf of each of WPTC and Creative, the Creative Shares will be purchased by WPTC in exchange for 4,900,000 WPTC shares to be issued from Treasury.

The Acquisition is subject to the following conditions: (i) completion of a valuation of Creative and a fairness opinion in respect of the Acquisition, both of which shall be satisfactory to the Board of WPTC in its sole discretion; (ii) absence of any material adverse change in the business, financial condition, prospects, assets or operations since March 31, 2006 of either party; (iii) the results of the due diligence investigation of each party being satisfactory to it in all material respects, including review and approval by each party's counsel and accountants of the tax and accounting structure of the Acquisition; (iv) approval of the Acquisition by the board of directors and shareholders of WPTC; (v) applicable regulatory approvals; (vi) negotiations of the Share Purchase Agreement and such other agreements as may be required; and (vii) the accuracy of the parties' respective representations and warranties.

Upon closing, the board of directors of Creative will be reconstituted so that it then consists of five individuals, two nominees of Creative and three nominees of WPTC.

Increase in clients and funds managed

Creative was established 1971, and has developed a dynamic and innovative financial service organization providing a broad range of insurance and investment products. The structure of Creative Planning Financial Group enables its clients to take advantage of any combination of services to fulfill their financial planning needs. Their unique approach permits them to create and implement a comprehensive range of financial programs for individuals and corporations. In addition to its insurance Managing General Agent services, Toronto-based Creative has approximately $132 million mutual fund Assets Under Administration ("AUA"). This Acquisition will augment the $183 million AUA currently held by WPTC's wholly owned subsidiary, Futureworth Financial Planners Corp., and establish a solid financial services presence for the WPTC group in Ontario.

About Western Pacific Trust Company

Western Pacific Trust Company is a non-deposit taking financial corporation. Western Pacific is licensed under the Financial Institutions Act in British Columbia as a Trust Company, and is a registered Mortgage Broker in B.C. under the Mortgage Brokers Act. The Company is also registered extra-provincially in Alberta as a non-deposit taking Trust Company. Western Pacific Trust has two wholly owned subsidiaries: Futureworth Financial Planners Corp., a licensed mutual fund dealer in British Columbia, Alberta, Ontario and Nova Scotia, and Western Equity Loans Ltd., a registered mortgage broker in Ontario.

"Victor Lee"

Victor Lee, President & CEO

This news release was prepared by the Board of Directors which is solely responsible for its contents.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Western Pacific Trust Company
    Alison Alfer
    Manager, Admin. & Communications
    (604) 683-0455
    (604) 669-6978 (FAX)