Business
WFP announces exercise price, record date and expiry date in respect of rights offering
WFP announces exercise price, record date and expiry date in respect of rights offering.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Feb. 3 /CNW/ - Western Forest Products (TSX: WEF) today\nannounced that it has filed a final prospectus in respect of its rights\noffering, which was announced on November 10, 2005.\nWestern intends to raise a total of C$295 million of equity by way of a\nrights offering to all shareholders. Rights will be issued to holders of\nrecord in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and\nQuDebec together with certain U.S. States. Further details of the distribution\nof the rights are provided in the prospectus. This financing will\nsubstantially increase the number of Western's common shares outstanding from\nthe current number of 25.6 million common shares.\nUnder the terms of the rights offering, common shareholders of Western of\nrecord as of the close of business (Toronto time) on February 13, 2006 will\nreceive one right for each common share held. Each right will allow the holder\nto subscribe for 6.975 subscription receipts at a price of $1.65 per\nsubscription receipt on or before 4:00 p.m. (Toronto time) on March 9, 2006.\nRights not exercised on or before 4:00 p.m. (Toronto time) on March 9, 2006\nwill be void and have no value.\nAt the time of closing of the previously announced acquisition of\nCascadia Forest Products Inc. (\"Cascadia\"), each subscription receipt will be\nautomatically exchanged for one Western common share.\nTricap Management Limited (\"Tricap\") has committed to purchase any common\nshare subscription receipts not otherwise purchased by rightholders under the\nrights offering. In addition, Tricap has been granted an option, which may be\nexercised for up to 10 business days following the completion of the rights\noffering, to acquire additional common share subscription receipts at the same\nissue price as under the rights offering in order to ensure that Tricap owns,\nor exercises control or direction over, 45% of the Western common shares after\ngiving effect to the rights offering.\nIf the exchange of subscription receipts would result in a holder or\ngroup of holders beneficially owning or controlling 50% or more of Western's\ncommon shares, Western may, at its option, permit the exchange of that portion\nof the subscription receipts owned by such holder(s) that would result in such\nholder(s) beneficially owning or controlling 49% of the common shares. The\nb...