Business
The Westaim Corporation requisitions meeting of shareholders of NUCRYST Pharmaceuticals to return capital to NUCRYST shareholders
CALGARY, Dec. 1 /CNW/ - The Westaim Corporation today announced it has requisitioned a special me...
About this update from Westaim Corporation
[{"type":"text","content":"\n\n\n\nCALGARY, Dec. 1 /CNW/ - The Westaim Corporation today announced it has\nrequisitioned a special meeting of shareholders of NUCRYST Pharmaceuticals\nCorp. to consider a return of capital to NUCRYST shareholders of approximately\nUS$15 million or US$0.80 per share. Westaim will continue to review\nalternatives to maximize the value of its 74.5 per cent stake in NUCRYST.\nUnder the Alberta Business Corporations Act, NUCRYST's Board of Directors has\n20 days to call a meeting of shareholders when requisitioned.\n\n\nIn addition to its 74.5 percent stake in NUCRYST, Westaim has net assets\nof approximately $15 million including cash of approximately $20 million;\nthird-party asset backed commercial paper with a book value of $5 million and\nliabilities of approximately $11 million. In addition, Westaim has\napproximately $100 million in tax pools available for use against future\nincome.\n\n\nWestaim's cash position will be strengthened by approximately $13 million\npending the return of capital to be considered at the meeting of NUCRYST\nshareholders.\n\n\n"Westaim's Board of Directors has considered all strategic alternatives\nto maximize the value of its assets," said Drew Fitch, President & CEO, The\nWestaim Corporation. "Given the current liquidity and credit crisis and the\nrelated scarcity of available new debt and equity capital, we believe our cash\nresources position us well to pursue new investment opportunities to grow the\nvalue of the company and realize maximum returns for our shareholders."\n\n\nThe Westaim Corporation's common shares are listed on The Toronto Stock\nExchange under the trading symbol WED. Westaim holds a 74.5 percent interest\nin NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS).\n\n\nThis news release contains forward-looking statements. These statements\nare based on current expectations that are subject to risks and uncertainties,\nand Westaim can give no assurance that these expectations are correct. Various\nfactors could cause actual results to differ materially from those projected\nin such statements, including but not limited to statements regarding\nWestaim's intention to review its alternatives for maximizing the value of its\nstake in Nucryst, the expected strengthening of Westaim's cash position on a\nreturn of capital by Nucryst, and pursuit of new in...