Business
WFP files preliminary prospectus in respect of rights offering
WFP files preliminary prospectus in respect of rights offering.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nVANCOUVER, Jan. 23 /CNW/ - Western Forest Products (TSX: WEF) today\nannounced that it has filed a preliminary prospectus in respect of its\nproposed rights offering, 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\nwill receive rights to subscribe for common share subscription receipts of\nWestern. At 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. The subscription price\nshall be determined at the time the final prospectus for the offering is\nfiled. The subscription price for each common share subscription receipt will\nbe fixed at 85% of the volume weighted average trading price of the Western\ncommon shares on the TSX for the 10 day period ending on the day prior to the\ndate of filing of the final prospectus, provided that the subscription price\nwill not be less than C$1.65 per common share subscription receipt nor greater\nthan C$2.75 per common share subscription receipt. The rights are expected to\nbe listed for trading on the TSX and will be exercisable for at least 21 days\nfollowing the date of mailing of the final prospectus.\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 righ...