Western Financial Group Announces $10 Million Equity Financing
(TSX - WES,WES.DB.A) Western Financial Group Inc. (the “Company”) announced today that it has entered into an agreement with a syndicate of investment dealers led by Jennings Capital Inc. and including Acumen Capital Finance Partners Limited to sell, on a best efforts private placement basis, up to $10 million of convertible redeemable non-voting Preferred Shares (the “Preferred Shares”) at a price of $100.00 per share. The Preferred Shares will pay a dividend of 6.75% per annum, payable semi-annually as declared by the Board of Directors, and mature on the date which is 5 years plus one day from their date of issuance. The Preferred Shares will be convertible into common shares at any time at the holder’s option at a price of $3.60 per share. The Preferred Shares will be redeemable after the third anniversary date of issuance. Payment on redemption or maturity of the Preferred Shares will be made by the Company issuing common shares at 95% of the prior average 20-day trading price prior to redemption. Prior to maturity, redemption will only occur where the common shares of the Company are trading at a price of at least 135% of the $3.60 conversion price.
Western Financial Group is one of the leading western-based financial service companies in Western Canada. With offices in towns and small cities across the West, the Company provides more than 250,000 customers with insurance, investment and banking products through WFG Agency Network, Western Life and Bank West.
The common shares of Western Financial Group are traded on the Toronto Stock Exchange under the symbol “WES” and the 9% Debentures trade under the stock symbol “WES.DB.A”.
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For further information:
Scott Tannas, President and Chief Executive Officer
Western Financial Group