Westaim updates shareholders on strategic alternatives

About this update from Westaim Corporation

[{"type":"text","content":"\n\n\n\nCALGARY, May 28 /CNW/ - The Westaim Corporation today updated\nshareholders regarding its consideration of strategic alternatives.\nPreviously, the Company announced that it was taking steps to reduce operating\ncosts, dispose of non-core assets and consider strategic alternatives.\n\n\niFire\n\n\n-----\n\n\nAs previously announced, Westaim has discontinued the development plan of\nits iFire Technology subsidiary in the face of increasing technological\nbarriers to entry and steep price reductions with the incumbent technologies\nin the flat panel television market. While iFire made progress on certain\naspects of its development plan, overall progress was slower than expected and\nconsequently the product development timeline extended past the timeframe\noriginally anticipated. In addition, iFire lacked the resources required to\ncomplete the development work necessary for commercialization.\n\n\nOver the past six months Westaim contacted prospective purchasers to\nsolicit interest in purchasing iFire. To date, no expressions of interest in\nacquiring iFire en bloc have been received. Consequently, the Company has\nturned its attention to seeking buyers for the assets of iFire and expects to\nsubstantially complete the sale of such assets by the end of 2008 for proceeds\nthat will likely range between $3 and $7 million.\n\n\nNucryst Pharmaceuticals\n\n\n-----------------------\n\n\nWestaim owns approximately 74.5 per cent of the outstanding common shares\nof Nucryst. Westaim is reviewing alternatives for its investment in Nucryst,\nincluding the sale of its Nucryst shares to a third party, the distribution of\nits Nucryst shares to shareholders of the Company or the investment of the\nCompany's remaining liquid assets in Nucryst.\n\n\nWestaim\n\n\n-------\n\n\nThe longer term options for Westaim include the possibility of\nidentifying a new business opportunity or entering into a reverse take over\ntransaction whereby a private company would become publicly traded through the\nacquisition of such company by Westaim for consideration comprised of common\nshares of Westaim. The Company has begun to receive, from third parties,\nexpressions of interest in pursuing such transactions. However, there can be\nno certainty that these expressions of interest will result in the completion\nof a transaction. Any such transaction c...

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