Business
Western announces completion of rights offering
/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAIL...
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE\nUNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\nCONSTITUTE A VIOLATION OF US SECURITIES LAW./\n\nTSX: WEF\n\n\nDUNCAN, BC, Jan. 21 /CNW/ - Western Forest Products (TSX: WEF) ("Western"\nor the "Company") today announced that it has completed its $50 million rights\noffering, which was announced on December 1, 2008.\n\n\nA total of approximately 188.7 million common shares were subscribed for\nby rightholders pursuant to the basic subscription right, including exercise\nof the basic subscription right by Tricap Management Limited ("Tricap"),\nWestern's largest shareholder, for proceeds of approximately $35.9 million.\nThe shares will be issued not later than January 27, 2009.\n\n\nDue to the exercise of the additional subscription privilege by\nrightholders, including Tricap, it will not be necessary for Tricap to\npurchase shares pursuant to the terms of the standby purchase agreement.\nPursuant to the additional subscription privilege, rightholders will purchase\nthe approximately 74.5 million shares not otherwise purchased by rightholders\nunder the basic subscription right for gross proceeds of approximately $14.1\nmillion. As such, a total of approximately 263.2 million shares will be issued\nin connection with the rights offering, for aggregate proceeds of $50 million.\n\n\nPrior to this rights offering, Tricap beneficially owned 49% of the\noutstanding common shares. Western may, at its option, permit the exercise of\nonly that portion of the rights owned by Tricap that would result in Tricap\nbeneficially owning, or exercising control or direction over, not more than\n49% of the common shares now outstanding (the "Exchange Limitation"). For that\nnumber of common shares that would otherwise have been issued on an exercise\nof rights but for the application of the Exchange Limitation, Western will\ndeliver non-voting shares in lieu of an equivalent number of common shares.\nUpon the closing of the rights offering, Tricap will hold a total of\n63,026,544 common shares and 338,945,860 non-voting shares or approximately\n49% and 100% of Western's issued and outstanding common shares and non-voting\nshares, respectively.\n\n\nUpon the closing of the rights offering, Western expects a total ...