High River, Alberta--(Newsfile Corp. - May 6, 2019) - The Western Investment Company of Canada Limited (TSXV: WI) ("WICC") announces today it has received all regulatory approvals from the Alberta Superintendent of Insurance including licences that will allow Fortress Insurance Company ("Fortress") to conduct business on a wider scale within Alberta.
With all conditions to closing now removed, WICC has completed its acquisition to acquire a fifty percent interest in Fortress. We look forward to updating our shareholders on progress with respect to our new venture with a goal to commence expanded western Canadian operations and insurance sales in July of 2019.
Fortress is an Alberta registered and regulated insurance company, exclusively providing automobile third party liability coverage to Prairie View Holding companies in the rental car and airport services business in Calgary. WICC and its partners have agreed on a plan to transform Fortress from its current narrow scope to seize upon opportunities in specialty and surplus lines of business within the western Canadian insurance marketplace. The plan includes expansion of Fortress' licenced operations to include all four western provinces, offering various property insurance products geared to niche customers.
WICC is planning to implement the conversion of the $4,000,000 in subscription receipts which were issued on April 9, 2019 into convertible debentures on Thursday, May 9, 2019. The gross proceeds will be used for general working capital purposes. Each debenture is convertible into common shares of WICC at a conversion price of $0.55 per share. The debentures will mature on March 31, 2024 and bear interest at the rate of 7.5% per annum, payable semi-annually at the end of March and September. Further details regarding the terms of the debentures are contained in WICC's press release dated April 9, 2019.
The Western Investment Company of Canada Limited 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. The company's shares are traded on the TSX Venture Exchange under the symbol WI. For more information on the company, please visit its website at www.winv.ca.
The Western Investment Company of Canada Limited
President and Chief Executive Officer
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the anticipated conversion date of WICC's subscription receipts, and future business plans. 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.
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