High River, Alberta, August 9, 2017 (GLOBE NEWSWIRE) – The Western Investment Company of Canada Limited (“Western” or the “Company”) (WI: TSXV) announced today that it has signed a Letter of Intent (“LOI”) to enter into a strategic partnership with Golden Health Care Inc. (“Golden Health Care”). The LOI:
- Outlines the terms for the purchase of a 30% equity interest in three seniors care homes in Saskatchewan from Golden Heath Care and certain other site specific shareholders (the “Seniors Care Homes Acquisition”). The homes are in the communities of Prince Albert, Estevan, and the Regina suburb of Emerald Park.
- Grants Western a one year option to acquire a 30% equity interest in undeveloped land owned by Golden Health Care in Yorkton, Saskatchewan. This parcel of land is currently undergoing an assessment and feasibility study for a multi-stage housing development for seniors.
- Commits Golden Health Care and Western to work together on a best efforts basis in the coming year to develop and implement a planning and governance framework to support future growth. Western will bring experience and resources to support the vision of Golden Health Care’s management team as they explore the potential for expansion of the organization into new communities.
The total value of the transaction is $5 Million, payable in cash at closing. The LOI contains a number of conditions to closing, including approvals from the board of directors of both parties, the completion of due diligence, entering into a mutually acceptable purchase and sale agreement, and all regulatory approvals including the approval of the TSX Venture Exchange. The parties have agreed to work toward a closing by September 1, 2017.
In addition, Western has provided a $500,000 deposit pursuant to a binding agreement with the two shareholders of the seniors care homes. If Western does not close the Seniors Care Homes Acquisition on or before September 29, 2017 then the two shareholders shall retain the deposit.
Western CEO Scott Tannas commented:
“Western was founded with a specific goal to partner with exceptional management teams at strong, successful Western Canadian companies, and to help them grow. Seniors care is an area where Western has expertise amongst our board and founding shareholder group. Golden Health Care is the largest Saskatchewan based seniors care organization, and we are keen to support the vision of Golden Health Care’s CEO Heather Haupstein for future expansion. Heather is an innovator, and the facilities she oversees are exceptional. At a time when Saskatchewan’s government is leading the way in health care reform, we think Golden Health Care is well positioned.”
Golden Health Care Chairman Doug Banzet stated:
“We are pleased to enter into a partnership with Western, and look forward to working with them to grow our business. Western is a visionary company with big ambitions, and features a team of executives and key shareholders with tremendous experience and who can add value. Their Western Canadian focus and the strategy of owning their investments for the long term were important considerations for us in this partnership.”
About Golden Health Care Inc.
Golden Health Care was founded in 2003 and now operates a total of 457 beds in seven communities in
Saskatchewan. For more information visit www.goldenhealthcare.ca
About The Western Investment Company of Canada Limited
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian businesspeople, and dedicated to building and maintaining ownership in successful Western Canadian companies, and helping them to grow. The Company’s shares are traded on the TSX Venture Exchange under the symbol WI. For more information on the Company, please visit its website at www.winv.ca
The Western Investment Company of Canada Limited Scott Tannas
President and Chief Executive Officer
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to board approvals, satisfactory completion of due diligence, entering into a purchase and sale agreement, and obtaining 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.
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