Western Investment Company of Canada Announces Private Placement of Convertible Unsecured Debentures

About this update from Western Investment Company Of Canada Limited

[{"type":"text","content":"Western Investment Company of Canada Announces Private Placement of Convertible Unsecured DebenturesHigh River, Alberta--(Newsfile Corp. - March 12, 2019) - The Western Investment Company of Canada Limited (TSXV: WI) (\"WICC\") announces today it has entered into an agreement for a brokered private placement led by AltaCorp Capital Inc. (\"AltaCorp\") as lead agent and sole bookrunner for the sale of subscription receipts (\"Subscription Receipts\") in the aggregate gross principal amount of up to $4,000,000 (the \"Financing\"). The proceeds of the Financing are expected to be used to finance WICC's previously announced insurance acquisition of Fortress Insurance Company (the \"Acquisition\"), and general working capital purposes. Each Subscription Receipt is priced at $1,000 per subscription receipt and will entitle the holder to receive one unsecured convertible debenture (each, a \"Debenture\") with a principal value of $1,000 if all escrow conditions are met which includes the completion of the Acquisition on or before 5:00pm MTN on July 3, 2019. Should the escrow conditions not be satisfied, the Subscription Receipts will be cancelled and all proceeds from the Financing will be returned to the subscribers, together with interest.Each Debenture will be convertible into common shares of WICC (\"Common Shares\") at a conversion price of $0.55 per share. The Debentures will mature on March 31, 2024 and bear interest at the rate of 7.5% per annum, payable semi-annually at the end of March and September. If after March 31, 2021, the closing price of the Common Shares on the TSX Venture Exchange is $0.65 or greater for 20 consecutive trading days, WICC may, at its option, force the conversion of the Debentures into Common Shares. WICC may elect, at its option, to redeem all or part of the Debentures at any time after March 31, 2021 at the redemption price set forth below plus accrued and unpaid interest, if redeemed during the calendar year upon 45 days written notice by WICC:2021 - 107.5%2022 - 105.0%2023 - 102.5%2024 - 100.0%The closing date of the Financing is expected to occur on or about April 4, 2019 (\"Closing Date\") and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approval including the approval of the TSX Venture Exchange. The Debentures are expected to be eligib...

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