Westaim and Fairfax Close Strategic Investment Transaction

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[{"type":"text","content":"\n\n\n\nWestaim and Fairfax Close Strategic Investment Transaction\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 2, 2017\n\n\n\nTORONTO, June 2, 2017 /CNW/ - The Westaim Corporation (\"Westaim\" or the \"Company\") (TSXV: WED) is pleased to announce that it has successfully closed its previously announced transaction with Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U) and certain of its subsidiaries (collectively, \"Fairfax\"), pursuant to which Fairfax has agreed to invest up to C$100 million in Westaim. \n\nFairfax has agreed to purchase, on a private placement basis, 5% interest rate preferred securities (the \"Preferred Securities\") in an aggregate amount of up to C$100 million, issuable in tranches of not less than C$25 million. Westaim has closed today an initial sale of Preferred Securities to Fairfax for C$50 million (the \"Initial Tranche\"), and has discretion until January 1, 2018 to require Fairfax to purchase all or part of the remaining 5,000,000 Preferred Securities, for up to C$50 million, with any such purchase to be completed not less than 20 business days following the giving of notice by Westaim to Fairfax. The Preferred Securities are subordinate secured securities that will mature on May 26, 2116 but may be repaid, in whole or in part, by Westaim at any time after June 2, 2022 and at any time after June 2, 2020 if the volume-weighted average trading price of its common shares (the \"Common Shares\") for any 10 day period prior to the date on which the applicable redemption notice is given is at least C$5.60 per Common Share.\n\nWestaim also issued 28,571,430 common share purchase warrants (the \"Warrants\"), each exercisable for one Common Share at an exercise price of C$3.50. The Warrants will vest proportionately based on the aggregate percentage of Preferred Securities purchased by Fairfax with an aggregate of 14,285,715 Warrants having vested today based on the closing of the Initial Tranche. Each vested Warrant is exercisable on or prior to June 2, 2022, but the expiry date will be extended to J...

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