August 28, 2003 by Canadian Underwriter
Broker network and banking company Western Financial Group (TSX: WES) says it has increased its investment in Jennings Capital Inc. Jennings is a western Canadian investment dealer which Western Financial says will add to its ability to offer investment products to its customers.
“Beyond providing a more complete line of services, Western Financial Group’s investment in Jennings Capital will create synergistic opportunities with the company’s existing mutual fund business as well as its insurance business and Bank West,” states a Western Financial press release.
The company notes that it had already increased investment in Jennings through the issuance of 500,000 Western Financial shares in exchange for 500,000 Jennings preferred shares. The company also acquired additional Jennings common shares, so that Western Financial now holds 33.2% interest in Jennings.
The transactions did not affect Western Financial’s earnings, but will add $500,000 to its debt as the preferred shares will be labeled debt for accounting purposes. The company was forced to restate its financial filings for 2002 based on the increase in investment as a result of the share issuance.