CALGARY, Nov. 4 /CNW/ - The Westaim Corporation announced today that its reorganization agreement with several western Canadian construction services companies has been terminated.
Under the terms of the proposed reorganization agreement dated on October 3, 2008, subscription agreements for a private placement of common shares for gross proceeds of $15 million were required to be signed and delivered within 14 days of the mailing of the information circular for Westaim's special meeting of shareholders. Due to the current volatile state of the financial markets and the general state of the investment climate, sufficient subscribers for the private placement could not be found.
As a consequence of terminating the reorganization agreement, Westaim has cancelled the shareholders' meeting called for November 21, 2008.
"Westaim will continue its review of strategic alternatives in light of this development," said Drew Fitch, President & CEO, The Westaim Corporation. "The board of directors will examine all possible options for the longer-term structure of the company moving forward and remain committed to realizing maximum value for shareholders."
The Westaim Corporation's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.
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