Business
Westaim Announces 2009 Year-end Results
Westaim Announces 2009 Year-end Results
About this update from Westaim Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Mar. 8, 2010 (Canada NewsWire Group) -- /CNW/ -- The Westaim Corporation announced today that for the year ended December 31, 2009, it recorded net income of $0.5 million, or 1 cent per share compared to a net loss of $10.2 million, or 11 cents per share in the previous year. For the three months ended December 31, 2009, the Company posted net income of $4.7 million, or 5 cents per share, compared to net income of $2.7 million, or 3 cents per share, in the same period in the previous year.At December 31, 2009, Westaim had $62.4 million in consolidated cash and cash equivalents, compared to $46.8 million at December 31, 2008. In addition, Westaim held ABCP with a book value of $4.0 million.\"Westaim is transforming into a company with a new focus on the Canadian property and casualty insurance business,\" said Cameron MacDonald, President & CEO of Westaim. \"Westaim has a strong balance sheet, cash resources, and the acquisition of JEVCO Insurance Company is expected to serve as the foundation for creating greater shareholder value over the long term.\"In the first quarter of 2010, Westaim announced completion of an amalgamation involving NUCRYST Pharmaceuticals Corp. (formerly a 75% subsidiary of Westaim) pursuant to which NUCRYST shareholders (other than Westaim) received US$1.77 in cash (US$8.2 million in the aggregate) and Westaim received all of the shares of the amalgamated company.Also in the first quarter of 2010, Westaim announced an agreement to purchase JEVCO Insurance Company from Kingsway Financial Services Inc. The purchase of JEVCO is subject to a number of conditions including the receipt of all required consents, authorizations and regulatory approval and is expected to take place on or about March 26, 2010 but in any event prior to April 30, 2010 (unless such date has been extended by the parties). To finance the acquisition, Westaim issued and sold, on a private placement basis, an aggregate of 550 million subscription receipts for aggregate gross proceeds of $275 million. Such funds, less certain expenses, are being held in escrow pending the completion of the acquisition. Further details regarding the acquisition and the related financing are available in Westaim's management information circular dated February 26, 2010.A more detailed discussion of Westaim's 2009 consolidated year end result...