High River, Alberta–(Newsfile Corp. – August 4, 2022) – The Western Investment Company of Canada Limited (TSXV: WI) (“WICC” or “Western”) is pleased to provide shareholders with the following changes to the no. about the situation at Fortress Insurance Company (“Fortress”).
– Registration fees for the first year of 2022 increased 213% to $7.2 million from $2.3 million in 2021. Fortress’ goal was to increase its revenue to $12 million by the end of 2022. Based on the first half of the year, they are on track to meet or exceed that goal.
-Linga has agreed to a joint venture with a US private insurance company (“US Insureco”), whose information will be kept confidential until the contract is closed. The agreement also includes a $1.7 million investment in Fortress by US Insureco, as well as a plan to provide Fortress with resources and expertise to provide specialty insurance products in the Canadian insurance markets through comprehensive and reinsurance agreements. The terms of the agreement remain subject to approval from both US Insureco and Fortress and various other approvals. Closing of the deal is expected on September 15, 2022. All parties to the deal are expected to be effective sometime in the fourth quarter of 2022.
-Fortress intends to complete a $5 million investment including funding from US Insureco, and funding from a small group of value-added businesses that will support the growth and development of Fortress. The subscription price of $1.72 per share to Fortress represents a nearly 100% premium to Fortress’ June 30, 2022 estimated “book value”, and a significant increase from Western’s initial offer of $0.85 per share in 2019.
Upon completion of the proposed financing, WICC and the entities that participated in the initial financing will continue to retain a controlling interest in Fortress of approximately 60%.
In a message to shareholders, WICC CEO Scott Tannas made this comment:
“Since investing in Western in 2019, we’ve helped Fortress establish a distribution partnership that has taken their property insurance business from zero to $12 million in annual sales by year-end, and counting. This was the first step in our development. We’re excited to see the management. Fortress is starting the next important phase, which is to create a portfolio of niche insurance products. The partnership with US Insureco will move Fortress into the most reliable market and with a strong financial, professional partner.
A $5 million investment from US Insureco and other profit-making organizations will provide Fortress with capital, strength, and growth opportunities for years to come.
We will keep our stakeholders informed of progress and details as we work with Fortress to obtain all necessary approvals. “
Company Profile The Western Investment Company of Canada Limited
WICC is a privately held, publicly traded company founded by a group of successful Western Canadian entrepreneurs, and committed to building and maintaining ownership in successful Western Canadian companies, and helping them grow. Western shares are traded on the TSX Venture Exchange under the symbol WI.
Information about Fortress Insurance Company
Fortress is a rapidly growing licensed personal injury and life insurance company operating in western Canada and Ontario. In addition to being a leading provider of commercial and residential insurance, Fortress focuses on the design and supply of specialty insurance products.
For more information about Western, please visit its website www.winv.ca
PROVISIONAL VERSION – The Western Investment Company of Canada Limited
Scott Tannas President and Chief Executive Officer (403) 652-2663 email@example.com
This article may contain forward-looking statements and statements, including without limitation, statements regarding the completion and timing of the $5 million financing, entering into an insurance agreement with US Insureco, receiving all board and regulatory approvals. , future plans, purchases, income and returns. The following words include: ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’ and ‘expects’ and any other words that have similar meanings to future. All the statements included here involve various risks and uncertainties because they relate to future events and situations that are beyond the control of the West. There can be no assurance that such information will be accurate, and actual results and future events may differ materially from those anticipated in such information. A description of the assumptions used in making such forward-looking information and a description of the factors that could cause risks that could cause actual results to differ materially from those of the forward-looking statements 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 press release and Western does not intend to update any forward-looking statements except in accordance with securities laws.
Neither the TSX Venture Exchange nor the Regulation Services Provider (as such term is defined in the TSX Venture Exchange regulations) accepts responsibility for the completeness or accuracy of this release.