TORONTO, Sept. 11, 2012 /CNW/ - The Westaim Corporation ("Westaim" or
the "Company") is pleased to announce that, further to the announcement
of September 5, 2012 regarding the completion of the sale of all of the
shares of JEVCO Insurance Company to a wholly-owned subsidiary of
Intact Financial Corporation (the "Jevco Transaction"), the board of
directors of Westaim (the "Board") has approved a cash distribution by
way of a return of capital on the common shares of the Corporation (the
"Common Shares") of $0.75 per Common Share (the "Cash Distribution")
and has established September 21, 2012 (the "Record Date") as the
record date for the Cash Distribution. The payment of the Cash
Distribution will occur on September 28, 2012 (the "Payment Date").
The Cash Distribution represents substantially all of the net proceeds
realized from the Jevco Transaction.
As the amount of the Cash Distribution of $0.75 per Common Share exceeds
25% of the price of the Common Shares on the Toronto Stock Exchange
(the "TSX") on September 11, 2012, pursuant to the rules of the TSX,
the "ex-distribution" date (the date on which purchasers of the Common
Shares will no longer have a right to receive the Cash Distribution)
will be October 1, 2012, the first trading day following the Payment
Date. The Common Shares are expected to trade on a "due bill" basis on
the TSX between market opening on September 19, 2012 and market closing
on September 28, 2012.
Full details on Due Bills and Due Bill trading are included Westaim's
Management Information Circular dated May 25, 2012 in respect of the
Jevco Transaction (the "Circular").
Non-Voting Share Amendment
In addition, as contemplated in the Circular, the Company has filed
articles of amendment to effect the Non-Voting Share Amendment
described in the Circular in order to allow the holders of Series 1
Class A, non-voting, participating, convertible, preferred shares of
the Company to convert such shares into Common Shares in order to
participate in the Cash Distribution on the same basis as the holders
of Common Shares.
Since the announcement of the Jevco Transaction, the Company has been
reviewing the status of its listing on the TSX given that the Company
has now sold substantially all of its current operating assets. The
Board has concluded that a listing with the TSX Venture Exchange
("TSX-V") would best suit the needs of the Company while providing
continued and seamless trading liquidity for the Company's
shareholders. As such, the Board has approved the making of a listing
application to the TSX-V and has applied to voluntarily de-list from
the TSX in approximately 60 days in order to seek a TSX-V listing.
The Company expects approval of its listing on the TSX-V prior to the
de-listing from the TSX becoming effective.
Westaim is a financial holding company focused on the property and
casualty insurance industry. Westaim's Common Shares are listed on the
TSX under the trading symbol WED. Further information can be found in
the disclosure documents filed by the Company with the securities
regulatory authorities, available at www.sedar.com.
Certain portions of this press release as well as other public
statements by Westaim contain forward-looking statements. Such
forward-looking statements include but are not limited to statements
concerning the proposed Cash Distribution; investment strategies and
expected rates of return; and strategic alternatives to maximize value
for shareholder. These statements are based on current expectations
that are subject to risks, uncertainties and assumptions and Westaim
can give no assurance that these expectations are correct. Westaim's
actual results could differ materially from those anticipated by
forward-looking statements for various reasons generally beyond our
control, including but not limited to: (i) the inability on the part of
Westaim to complete the Cash Distribution; (ii) changes in market
conditions or deterioration in underlying investments; (iii) general
economic, market, financing, regulatory and industry developments and
conditions; (iv) other risk factors set forth in Westaim's Annual
Report, Quarterly Reports or Annual Information Form. Westaim disclaims
any intention or obligation to revise forward-looking statements
whether as a result of new information, future developments or
otherwise except as required by law. All forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
SOURCE: The Westaim Corporation
For further information:
Jeff Sarfin, Chief Financial Officer