TORONTO, March 15 /CNW/ - The Westaim Corporation (Westaim or the Company) (TSX: "WED") announces that RiskMetrics Group (formerly Institutional Shareholder Services or "ISS") is recommending that its clients vote in favour of approving the financing resolution to be submitted to shareholders of Westaim at a special meeting of shareholders scheduled for March 25, 2010 (the Financing Resolution). The Financing Resolution relates to the issuance of up to 550 million common shares of Westaim, issuable on the conversion of an equal number of subscription receipts, recently sold by way of private placement. The subscription receipts were sold to finance the previously announced acquisition of JEVCO Insurance Company (JEVCO) from Kingsway Financial Services Inc.
RiskMetrics is widely recognized as one of the leading independent proxy voting and corporate governance advisory firms. Their analyses and recommendations are relied upon by many major institutional investment firms, mutual funds and fiduciaries throughout North America.
In its report issued on March 11, 2010 recommending that its clients vote to approve the Financing Resolution, RiskMetrics stated*:
"WED has been searching for a new strategic investment opportunity.
(Her Majesty the Queen in Right of the Province of Alberta) is
expected to be a strong financial partner and the proposed
transformational transaction provides WED with a new focus."
"Management believes the acquisition will help create long term
value...Market reaction has been positive and the stock is trading at
its 52-week high."
"We are pleased that RiskMetrics supports our view that Westaim shareholders should vote FOR the Financing Resolution," said Cameron MacDonald, Westaim's President and Chief Executive Officer. "We urge shareholders not to delay voting their proxy, in order to ensure it is received in time to be counted at the Special Meeting."
A Management Information Circular, dated February 26, 2010 has been mailed to shareholders and filed on SEDAR (www.sedar.com) and Westaim's web page (www.westaim.com). The Circular contains, among other items, details regarding the Financing Resolution, the sale of the subscription receipts, the terms of the acquisition, the business of JEVCO and certain historical and pro forma financial information relating to JEVCO and Westaim.
About the Special Meeting
The Special Meeting (the "Meeting") of shareholders of The Westaim Corporation will be held at St. Andrew's Club and Conference Centre, 150 King Street West, 27th Floor, Toronto, Ontario, Canada on March 25, 2010 at 10:00 a.m. (Toronto time).
Shareholders who require assistance in voting their proxy may direct their inquiry to Westaim's proxy solicitation agent, Kingsdale Shareholder Services, 1-888-518-6813 or firstname.lastname@example.org
Westaim invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.
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 transaction described herein; 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) failure to complete the transaction referred to herein; (ii) changes in market conditions or deterioration in underlying investments; (iii) general economic, market, financing, regulatory and industry developments and conditions; and (iv) other risk factors set forth in Westaim's Annual Report 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.
*Permission to use quotations from the RiskMetrics report was neither sought nor obtained.
SOURCE Westaim Corporation
For further information: For further information: Jeffrey Sarfin, Chief Financial Officer, (416) 203-2253, email@example.com