High River, Alberta – Further to its previous announcement, The Western Investment Company of Canada Limited (“WICC” or “Western”) (TSXV: WI) announced today that its investee, Fortress Insurance Company (“Fortress”), has closed a $5.3 million equity financing. The value has increased from that previously expected due to greater demand from our distribution partners and the execution of a significant new partnership agreement.
- Fortress has entered into a strategic partnership with U.S. based Indemnity National Insurance Company (“INIC”). The partnership includes an equity investment of approximately $1.7 million in Fortress by INIC, and a plan to provide Fortress with the resources and expertise to offer specialty surety products in Canadian commercial insurance markets through a comprehensive underwriting and re-insurance agreement. The partnership agreement has received all governance and regulatory approvals and is now operational.
- Fortress closed its $5.3 million equity issuance which includes the INIC investment, with the balance coming from a small group of value-added distribution and business partners who will contribute to the continuing growth and development of Fortress. The subscription price of $1.72 for each share in Fortress represents an approximate 215% premium to Fortress’ June 30, 2022 “book value”, and a substantial increase from Western’s original $0.85 per share investment in 2019.
Upon completion of the financing, WICC and its original investment partners retain a combined majority controlling interest in Fortress.
WICC CEO Scott Tannas provided the following commentary:
“We congratulate Fortress management on the completion of this important transaction. The partnership with INIC will propel Fortress into the specialty surety market in the mining, energy, and natural resource sectors with a financially strong, expert partner. The $5.3 million aggregate investment from INIC and other value-added partners will provide Fortress with capital, capacity, and growth opportunities for years to come.“
About The Western Investment Company of Canada
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian business people, 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.
About Fortress Insurance Company
Fortress is a fast-growing property and casualty insurer licenced and operating in Canada’s western provinces and Ontario. In addition to being a niche capacity provider in the commercial and residential property insurance market, Fortress is focused on the development and provision of specialty insurance products.
About Indemnity National Insurance Company
AM Best A- (“Excellent”) rated, U.S. Treasury listed and licensed across a majority of the United States, INIC’s team of professionals focuses on supporting some of the country’s most critical industries, with a focus on mining, energy and other specialty areas. Its customers range from large publicly traded Fortune 500 companies to private entrepreneurs, and INIC is committed to providing individualized excellence to every one of them.
The Western Investment Company of Canada Limited
President and Chief Executive Officer
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