Western Investment Company of Canada Announces Private Placement of Convertible Unsecured Debentures

High River, Alberta--(Newsfile Corp. - March 12, 2019) - The Western Investment Company of Canada Limited (TSXV: WI) ("WICC") announces today it has entered into an agreement for a brokered private placement led by AltaCorp Capital Inc. ("AltaCorp") as lead agent and sole bookrunner for the sale of subscription receipts ("Subscription Receipts") in the aggregate gross principal amount of up to $4,000,000 (the "Financing").

The proceeds of the Financing are expected to be used to finance WICC's previously announced insurance acquisition of Fortress Insurance Company (the "Acquisition"), and general working capital purposes.

Each Subscription Receipt is priced at $1,000 per subscription receipt and will entitle the holder to receive one unsecured convertible debenture (each, a "Debenture") with a principal value of $1,000 if all escrow conditions are met which includes the completion of the Acquisition on or before 5:00pm MTN on July 3, 2019. Should the escrow conditions not be satisfied, the Subscription Receipts will be cancelled and all proceeds from the Financing will be returned to the subscribers, together with interest.

Each Debenture will be convertible into common shares of WICC ("Common Shares") at a conversion price of $0.55 per share. The Debentures will mature on March 31, 2024 and bear interest at the rate of 7.5% per annum, payable semi-annually at the end of March and September. If after March 31, 2021, the closing price of the Common Shares on the TSX Venture Exchange is $0.65 or greater for 20 consecutive trading days, WICC may, at its option, force the conversion of the Debentures into Common Shares.

WICC may elect, at its option, to redeem all or part of the Debentures at any time after March 31, 2021 at the redemption price set forth below plus accrued and unpaid interest, if redeemed during the calendar year upon 45 days written notice by WICC:

2021 - 107.5%
2022 - 105.0%
2023 - 102.5%
2024 - 100.0%

The closing date of the Financing is expected to occur on or about April 4, 2019 ("Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approval including the approval of the TSX Venture Exchange. The Debentures are expected to be eligible for RRSP, RESP, RRIF, TFSA and DPSP accounts and will be subject to a statutory hold period that extends four months and one day from the Closing Date.

The Acquisition is currently scheduled to close in early Q2, 2019. Investors should refer to WICC's press release dated March 11, 2019 and earlier press releases for further details regarding the Acquisition.

In connection with the Financing, the lead agent is entitled to receive (i) a cash commission equal to 6% of the aggregate proceeds of the portion of the Financing sold to subscribers sourced by the lead agent, and (ii) broker warrants equal to 6% of the Financing, with each broker warrant exercisable into one Common Share at an exercise price of $0.55 that expire 24 months from the Closing Date.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About WICC

The Western Investment Company of Canada Limited 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. WICC's shares are traded on the TSX Venture Exchange under the symbol WI. For more information on WICC, please visit its website at www.winv.ca.

CONTACT INFORMATION

The Western Investment Company of Canada Limited
Scott Tannas
President and Chief Executive Officer
(403) 652-0408
stannas@winv.ca

Advisory

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to completion of the Financing, closing of the acquisition of Fortress Insurance Company, the use of proceeds and regulatory approval. 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. In particular, no assurance can be given as to the timing and/or completion of the Financing and the Acquisition. 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43353