Westaim calls for meeting of Nucryst shareholders
2008-12-01 17:46 ET - News Release
Also News Release (C-NCS) Nucryst Pharmaceuticals Corp
Mr. Drew Fitch of Westaim reports
THE WESTAIM CORPORATION REQUISITIONS MEETING OF SHAREHOLDERS OF NUCRYST PHARMACEUTICALS TO RETURN CAPITAL TO NUCRYST SHAREHOLDERS
The Westaim Corp. has requisitioned a special meeting of shareholders of Nucryst Pharmaceuticals Corp. to consider a return of capital to Nucryst shareholders of approximately $15-million (U.S.) or 80 U.S. cents per share. Westaim will continue to review alternatives to maximize the value of its 74.5-per-cent stake in Nucryst. Under the Alberta Business Corporations Act, Nucryst's board of directors has 20 days to call a meeting of shareholders when requisitioned.
In addition to its 74.5-per-cent stake in Nucryst, Westaim has net assets of approximately $15-million including cash of approximately $20-million; third party asset-backed commercial paper with a book value of $5-million; and liabilities of approximately $11-million. In addition, Westaim has approximately $100-million in tax pools available for use against future income.
Westaim's cash position will be strengthened by approximately $13-million pending the return of capital to be considered at the meeting of Nucryst shareholders.
"Westaim's board of directors has considered all strategic alternatives to maximize the value of its assets," said Drew Fitch, president and chief executive officer, Westaim. "Given the current liquidity and credit crisis and the related scarcity of available new debt and equity capital, we believe our cash resources position us well to pursue new investment opportunities to grow the value of the company and realize maximum returns for our shareholders."
