VANCOUVER, British Columbia, April 10, 2019 (GLOBE NEWSWIRE) -- Western Resources Corp. (TSX: WRX) ("Western" or the "Company") announces that it has closed the rights offering ("Rights Offering") announced on March 6, 2019. A total of 93,437,110 common shares of the Company ("Shares") will be issued to holders of Rights ("Rightholders") at a subscription price of C$0.12 per Share which represents gross proceeds of C$11,212,453.20. The total issued and outstanding capital of the Company following the completion of the Rights Offering will be 186,874,220 common shares.
Pursuant to the terms of the Rights Offering, the Company issued 73,214,268 Shares to Rightholders under the Basic Subscription Privilege, including 47,652,927 Shares to Tairui Mining Inc. (“Tairui”) and 9,437,148 Shares to CBC (Canada) Holding Corp. (“CBC”), both of which are insiders of the Company by virtue of beneficial ownership of more than 10% of the total issued and outstanding common shares of the Company. In addition, 20,222,842 Shares were issued to Rightholders under the Additional Subscription Privilege. Tairui subscribed for additional 15,110,084 Shares under the Additional Subscription Privilege but did not need to fulfill its standby commitment as all Rights were fully subscribed for under the Additional Subscription Privilege.
Following the completion of the Rights Offering, Tairui holds a total of 110,415,938 common shares which is equivalent to 59.09% of the total issued and outstanding common shares of the Company, while CBC holds 18,874,296 common shares but remains 10.1% shareholding in the total issued and outstanding capital of the Company.
As indicated in the Company’s Rights Offering Circular, the Company intends to use the net proceeds of the Rights Offering to advance the Milestone Potash Project and for general corporate purposes.
This news release contains "forward-looking statements" within the meaning of applicable securities laws. Although Western believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based on factors and assumptions concerning future events that may prove to be inaccurate. These factors and assumptions are based upon currently available information to Western. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the receipt of the TSX approval in respect of the Rights Offering and the timing thereof. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release and, except as required by applicable law, Western does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. Western undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Western, or its financial or operating results or its securities.
For more information on the contents of this press release please contact Jerry Zhang, Corporate Secretary at 604-689-9378.