Business
The Westaim Corporation to undertake review of business strategy
The Westaim Corporation to undertake review of business strategy.
About this update from Westaim Corporation
[{"type":"text","content":"\n\n\n\nCALGARY, April 23 /CNW/ - The Westaim Corporation announced today it will\nundertake a review of its business strategy. The Board of Directors has\ndirected management of the Company to consider strategic alternatives to\nmaximize value for shareholders. The Board does not believe that the Company's\ncurrent share price accurately reflects the value of its investments in\nNUCRYST Pharmaceuticals and iFire Technology. The company will retain\nstrategic and financial advisors as necessary during the process.\n\n\n"Development delays at iFire Technology and disappointing results from a\nPhase 2 clinical trial of a treatment for atopic dermatitis at NUCRYST have\nresulted in a weakened share price," said Barry Heck, President & CEO of The\nWestaim Corporation. "This is putting pressure on our balance sheet and, as a\nresult, we must re-assess our business strategy and determine the optimal use\nof existing resources and assets."\n\n\nAs of December 31, 2006, Westaim had $62.8 million in consolidated cash\nand short term investments which includes $22.1 million of NUCRYST\nPharmaceuticals Corp. cash and short-term investments. In addition to its\nwholly owned subsidiary, iFire Technology, Westaim owns 74.8 per cent of the\noutstanding shares of NUCRYST Pharmaceuticals.\n\n\nThe Westaim Corporation's technology investments include iFire Technology\nCorp., which is developing a low-cost flat panel display technology, and a\n74.8 per cent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX;\nNCS), which develops, manufactures and commercializes medical products that\nfight infection and inflammation based on its nanocrystalline silver\ntechnology. Westaim's common shares are listed on The Toronto Stock Exchange\nunder the trading symbol WED and on the NASDAQ under the trading symbol WEDX.\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 involving beliefs\nregarding the Company's share price, the value of Westaim's investments in\nNUCRYST and iFire, and the best use of the Com...