facebook pixel

Default Test Message - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse dapibus, ante a dignissim luctus

Western Financial Group announces Increase In Its Equity Financing to $15 Million

(TSX - WES,WES.DB.A) Western Financial Group Inc. (the “Company”) announced today that it has increased its previously announced equity financing from a maximum of $10 million to $15 million of convertible redeemable non-voting Preferred Shares (the “Preferred Shares”) and has amended the terms of the Preferred Shares.

The Preferred Shares are priced at $100.00 per Share and will pay a dividend of 6.75% per annum, payable semi-annually as declared by the Board of Directors. The Preferred Shares will be convertible into the Company’s common shares at any time at the holder’s option at a price of $3.60 per common share. The Preferred Shares will be redeemable by the Company only after the third anniversary date of issuance. Payment on redemption of the Preferred Shares will be made by issuing the Company’s common shares at 95% of the prior average 20-day trading price prior to redemption. Redemption from the third anniversary to and including the fifth anniversary 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. After the fifth anniversary date the Preferred Shares will be redeemable at the option of the Company by issuing the Company’s common shares at 95% of the prior average twenty day trading price. If not redeemed, on the fifth anniversary and each anniversary thereafter, the Preferred Shares will pay a dividend, per annum payable semi-annually, as declared by the Board of Directors, of 3.5% above the five year Canadian bond rate as quoted seven days before the anniversary date. In addition, if the Preferred Shares remain outstanding but are not listed on a recognized Canadian stock exchange, the dividend shall be increased a further 0.50%.

A syndicate of investment dealers led by Jennings Capital Inc. and including Acumen Capital Finance Partners Limited are acting as agents in connection with the private placement.

Western Financial Group is one of Western Canada’s leading 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”.

This press release is not for distribution to any United States news services or otherwise in the United States.

For further information:
Scott Tannas, President and Chief Executive Officer,
Western Financial Group
(403) 652-2663