CALGARY, ALBERTA–(Marketwired – Nov. 8, 2016) – The Western Investment Company of Canada Limited (“Western”) (TSX VENTURE:WI.P), further to its press release dated September 22, 2016 announcing entering into a letter of intent, is pleased to announce that it has made substantial progress toward the completion of its proposed Qualifying Transaction, and subject to the satisfaction of remaining conditions precedent in the letter of intent, Western intends to proceed with the transaction to purchase GlassMasters Autoglass Ltd. (“GlassMasters”) and ARG Wholesale Ltd. (“ARG”) (the “Transaction”).
GlassMasters is one of the largest windshield repair companies in the province of Alberta with seven retail locations and 27 mobile service units operating in Calgary, Red Deer and Edmonton. ARG is a wholesale automotive glass distribution company. Once the Transaction is completed, the current owners of GlassMasters and ARG, Miles Palmer and Karyn Palmer will retain a significant minority interest in the enterprise and will continue to work closely with the management team at GlassMasters for years to come. In addition, certain key managers have agreed to participate in an equity position, and will be given future opportunities to build on their ownership.
Western is also pleased to confirm that ATB Capital, the recently formed private equity division of ATB Financial, intends to participate as an equity partner in the transaction.
Western President and CEO, Scott Tannas commented “We at Western, have been working hard since September 22 to clear the path toward completing this transaction. While we still have much to do to satisfy remaining conditions and receive approvals before our target closing date of November 30, we are now comfortable to release this update, including the identity of GlassMasters as the company we are proposing to acquire, and ATB as our investing partner. We are very proud to join Miles and his team in forming a strong partnership to build and expand this terrific business.”
GlassMasters President Miles Palmer comments “We are delighted to enter this next phase of our evolution with strong partners like Western and ATB. This partnership will provide GlassMasters with additional capital, contacts, and other resources that will enable us to expand our business in Alberta and into new markets in Western Canada. Our goal is to provide our customers with the most convenient, professional auto glass replacement service possible.
Both Western and ATB share the same values of service and quality of workmanship that allowed us to make GlassMasters what it is today. They have the experience and the leadership needed to grow our brand. As new partners with strong Alberta roots and a long term view of ownership our employees will be able to further their careers and be part of a rapidly growing, successful, national auto-glass company.”
A more comprehensive news release will be issued if and when the definitive agreement has been executed.
About Western (www.winv.ca)
Western is a CPC that has not commenced commercial operations and has no assets other than cash. Except as specifically contemplated in the TSX Venture Exchange’s CPC policy, until the completion of its qualifying transaction, Western will not carry on business, other than the identification and evaluation of businesses or assets with a view to completing a proposed qualifying transaction. Western’s strategy is to create a diversified portfolio of established Western Canadian businesses and create value through the identification and long-term ownership of companies with sustained cash flows and strong potential for organic growth.
The common shares of Western have traded on the TSX Venture Exchange (under the symbol WI.P) since February 24, 2016. The common shares of Western are currently halted for trading and will remain halted until all conditions have been met.
Completion of the Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested shareholder approval, if necessary. If required, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Western should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.
Further information about Western can be found in its prospectus dated February 1, 2016 and other filings with the Canadian securities regulators, which are available at www.sedar.com.
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Transaction including Western’s ability to obtain financing and the necessary approvals, including regulatory approvals. Statements containing the words: ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’ and ‘anticipates’ and any other words of similar meaning are forward-looking. All statements included herein involve various risks and uncertainties because they relate to future events and circumstances beyond Western’s control. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Western’s disclosure documents on the SEDAR website at www.sedar.com. Any forward-looking statements are made as of the date of this news release and Western does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Western Investment Company of Canada Limited
President and Chief Executive Officer