Canadian long-term investment firm Westaim Corp has acquired US$44 million of preferred shares in Houston International Insurance Group. The investment was part of a broader US$100 million rights offering. HIIG is an international specialty insurance group based in Houston, Texas.
TORONTO–(BUSINESS WIRE)–Further to its press release of March 19, 2020, The Westaim Corporation (“Westaim” or the “Company”) (TSXV: WED) is pleased to announce that it has completed the purchase of $44,003,574 of shares of Series A Convertible Preferred Stock (the “Preferred Shares”) of Houston International Insurance Group, Ltd. (“HIIG”). The Preferred Shares purchased by Westaim formed part of a larger offering of Preferred Shares by HIIG by way of a rights offering (the “Rights Offering”) pursuant to which existing direct and indirect holders of shares of HIIG’s common stock were entitled to subscribe, on a pro rata basis, for Preferred Shares.
The Rights Offering was over-subscribed and resulted in gross proceeds to HIIG of $100 million. HIIG expects to contribute the net proceeds of the Rights Offering from time to time to its insurance company subsidiaries to support their insurance businesses and for general corporate purposes.
Following completion of the Rights Offering, Westaim’s interest in Westaim HIIG Limited Partnership, combined with its direct ownership of Preferred Shares, results in its 44.0% look through interest in HIIG being unchanged.
Westaim is a Canadian investment company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. The Company invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim’s strategy is to pursue investment opportunities with a focus towards the financial services industry and grow shareholder value over the long term. Westaim’s investments include significant interests in HIIG and the Arena Group. Westaim’s Common Shares are listed on the TSX Venture Exchange under the trading symbol WED. This release is made solely on behalf of Westaim and not on behalf of HIIG.