Westaim enters into Management Services Agreement

    CALGARY, April 3 /CNW/ - The Westaim Corporation today announced that it
plans to pursue strategic investment opportunities designed to maximize the
value of the Company's strong balance sheet and non-cash resources. To
implement this strategy, Westaim has entered into a management services
agreement (the "MSA") with Goodwood Management Inc. ("Goodwood"), an affiliate
of Goodwood Inc., to manage the day-to-day affairs of the Company and to
present strategic investment opportunities for the Board of Directors to
    In addition, the Company announced that Cameron MacDonald has been
appointed President and CEO of Westaim. He replaces Drew Fitch, who will
continue to advise the Company during the transition phase.
    "On behalf of the Board, I want to thank Drew Fitch for his many years of
service and more recently for his work monetizing the Company's non-core
assets that have brought us to this exciting new phase for Westaim," said Ian
W. Delaney, Chairman of Westaim. "This new agreement with Goodwood is expected
to present many new opportunities for the Company to consider in order to best
utilize the assets and resources of Westaim."
    "Our strategy will be to fully leverage both our investment resources and
our significant experience and expertise to increase shareholder value," said
Mr. MacDonald. "We look forward to working with the Board as we actively
pursue new investment opportunities for Westaim."
    Goodwood Inc., as portfolio manager to certain investment funds,
exercises control or direction over an aggregate of 18,747,000 common shares
of the Company ("Westaim Shares"), which represents approximately 19.9 per
cent of the issued and outstanding Westaim Shares. Accordingly, the execution
of the MSA constituted a related party transaction for the Company for the
purposes of Multilateral Instrument 61-101 - Protection of Minority
Shareholders in Special Transactions ("MI 61-101"). The decision to enter into
the MSA was made by the independent directors of the Company who also
determined that the transaction was exempt from the valuation and minority
approval requirements of MI 61-101.

    About Westaim

    The Westaim Corporation 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 holds a 75 per cent interest in NUCRYST Pharmaceuticals
Corp. (NASDAQ:   NCST; TSX: NCS). Westaim's common shares are listed on The
Toronto Stock Exchange under the trading symbol WED.

    This news release contains forward-looking statements. These statements
are based on current expectations that are subject to risks and uncertainties,
and Westaim can give no assurance that these expectations are correct. Various
factors could cause actual results to differ materially from those projected
in such statements, including but not limited to statements regarding the
availability of new opportunities to Westaim and the enhancement of
shareholder value. Westaim disclaims any intention or obligation to revise
forward-looking statements whether as a result of new information, future
developments or otherwise. Accordingly, readers are advised not to place undue
reliance on forward-looking statements, and should not rely on this
information at any date other than the date of this news release. All
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.

    %SEDAR: 00002793E

For further information:

For further information: Cameron MacDonald, President and Chief
Executive Officer, The Westaim Corporation, (416) 203-2022, info@westaim.com

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