The Western Investment Company of Canada Limited closed, on Thursday, its previously announced private placement, raising a total of $30 million. The offering, which was upsized in September, saw an over-subscribed interest, with the final amount including an additional $1.1 million in outstanding proceeds.
Originally announced on August 30, 2024, the private placement offered 75,000,000 units at a price designed to raise up to $25 million, with an optional $5 million over-allotment. Each unit consists of one common share and one warrant, allowing the holder to purchase one additional common share at an exercise price of $0.47 for a period of five years. The common shares and warrants issued will be subject to a four-month hold period from the closing date.
According to a news release, the funds raised will be directed towards several strategic initiatives, including acquisitions within the insurance sector, administrative expenses, capital expenditures, and increasing its ownership in Fortress Insurance Company to 100%.
This private placement is still pending final approval by the TSX Venture Exchange.
Western Investment Company of Canada completed a series of transactions this month to shift its focus to property and casualty insurance and investment management. In addition to the $30 million private placement, key developments include the acquisition of new portfolio companies and a rights offering that raised $6.3 million. The company also appointed a refreshed board with expertise in the insurance sector, including Greg Morrison, former CEO and director of Trisura; Naim Ali; Robert Cihra; Dr. Kabir Jivraj; and Sharon Ranson.
Western is a publicly traded private equity firm founded by a group of Western Canadian businesspeople. The company focuses on acquiring and maintaining ownership in successful businesses based in Western Canada, with an emphasis on supporting their growth. Western’s shares are listed on the TSX Venture Exchange under the symbol WI.
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