Western Financial to raise $10 million through placement

Western Financial Group Inc. (TSX: WES) plans to raise approximately $10 million through a private placement, which the company says the proceeds will be used to fund its ongoing acquisition program, as well as for “general corporate purposes”. Subject to regulatory approval, the placement closes on December 18 this year.
Western expects to issue just over four million “units” at a purchase price of $2.47 per unit. The company notes that a “unit” consists of one common share of the company and half of a purchase warrant. A whole warrant entitles the holder to acquire one common in Western at a price of $2.90 for a period of two years.
A Western statement notes that the company has the option to increase the size of the offering by about two million units, valued at $5 million. The placement is being managed by a syndicate of agents including CIBC World Markets Inc., Jennings Capital Inc. and Lightyear Capital Inc.