Business
Westaim completes $273,372,500 private placement of subscription receipts
Westaim completes $273,372,500 private placement of subscription receipts
About this update from Westaim Corporation
[{"type":"text","content":"\n\n\n\nFeb. 9, 2010 (Canada NewsWire Group) -- TORONTO, Feb. 9 /CNW/ -- The Westaim Corporation (Westaim or the Company) (TSX: \"WED\") announced today that it has completed the sale of an aggregate of 546,745,000 subscription receipts (Subscription Receipts) at a purchase price of $0.50 each for aggregate gross proceeds of $273,372,500. An aggregate of 219 million Subscription Receipts were sold pursuant to an underwriting and agency agreement between Westaim and GMP Securities LP (GMP) dated February 9, 2010. An additional 296 million Subscription Receipts were purchased by Her Majesty the Queen in Right of the Province of Alberta (HMQ) through Alberta Investment Management Corporation (AIMCo). As well, an aggregate of 31,745,000 Subscription Receipts were purchased by directors and officers of Westaim, funds managed by Goodwood Inc., existing senior management of JEVCO and certain other designated investors (collectively the Designated Purchasers). A second closing is scheduled for February 19, 2010 in respect of the sale of the remaining 3,255,000 Subscription Receipts to certain other Designated Purchasers for gross proceeds of $1,627,500.The Subscription Receipts were issued under a subscription receipt indenture (the Indenture) among Westaim, GMP and Equity Transfer & Trust Company (the Receipt Agent). Each Subscription Receipt entitles, subject to adjustment and except as described below, the holder thereof to receive upon the conversion thereof one common share of Westaim (each a Common Share). The Subscription Receipts issued to HMQ are exercisable for a mix of Common Shares and Series 1 Class A non-voting preferred shares of Westaim (Non-Voting Shares). The Non-Voting Shares were created by the filing of articles of amendment (the Articles of Amendment) and are convertible into Common Shares of Westaim on a one-for-one basis. The terms of the Non-Voting Shares provide that Westaim can refuse a request to convert such shares into Common Shares if as a result of such conversion the holder thereof would own more than 40% of the then outstanding Common Shares.Each Subscription Receipt will entitle the holder thereof to receive without further consideration or action: (i) one Common Share or, in the case of the Subscription Receipts issued to HMQ, one Common Share or one Non-Voting Share (in each case an Underlying Share)...