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