Western Financial Group Inc. Closes Previously Announced Equity Offerings

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HIGH RIVER, AB, June 29 /CNW/ - Western Financial Group Inc. ("Western Financial Group" or the "Company") is pleased to announce that it has closed its previously announced public offering (the "Public Offering") of 6,514,750 Common Shares which includes the exercise in full of the Underwriters' over-allotment option of 849,750 Common Shares at a price of $2.65 per Common Share for gross proceeds of approximately $17,264,088. The Common Shares were offered to the public through a syndicate of underwriters co-led by TD Securities Inc. and GMP Securities L.P., and including CIBC World Markets Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., Acumen Capital Finance Partners Limited and Jennings Capital Inc. Western Financial Group is also pleased to announce that it has closed its previously announced private placement (the "Private Placement") of 3,879,747 Common Shares at a price of $2.65 per Common Share for gross proceeds of approximately $10,281,330. TD Securities Inc., as lead agent and Industrial Alliance Securities Inc. acted as agents in connection with the Private Placement. The net proceeds of both the Public Offering and the Private Placement will initially be added to working capital and subsequently used to fund the Company's ongoing insurance brokerage acquisition program and for general corporate purposes.

The Common Shares of the Company are traded on the Toronto Stock Exchange under the symbol "WES".

Western Financial Group is a leader in providing insurance, financial services and banking services in over 90 communities, to more than 500,000 individuals and businesses in Western Canada through its wholly owned network of offices, its affiliated insurance brokers, Western Life Assurance Company, Bank West and Western Financial Insurance Company.

Forward-Looking Information

This press release contains information that constitutes "forward-looking information" or "forward-looking statements" (collectively "forward-looking information") within the meaning of applicable securities legislation. This forward-looking information includes, among others, statements regarding: the use of proceeds of the Public Offering and the Private Placement and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events.

This forward-looking information is based on various assumptions. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release. The material risk factors include, but are not limited to, uncertainties as to the Company's ability to complete additional acquisitions.

Forward-looking information is based on the estimates and opinions of the Company's management at the time the information is presented. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change, except as required by law.

For further information: Arlene Beggs, Executive Assistant to the CEO, Western Financial Group, [phone], [email protected]