CALGARY, May 8 /PRNewswire-FirstCall/ -- The Westaim Corporation announced today it has sold its real estate holdings in Fort Saskatchewan, Alberta, for net proceeds of $13.5 million. The company will record a book gain of approximately $7.5 million on the transaction.
"As part of our review of the company's business strategy, we determined that our Fort Saskatchewan real estate assets are no longer key to our future plans," said Barry M. Heck, President & CEO, The Westaim Corporation. "We believe it is in the best interest of Westaim's shareholders to realize the value of this non-core asset to strengthen our balance sheet. The facility is partially occupied by NUCRYST Pharmaceuticals which will continue as a tenant under existing long-term leases."
On April 23, 2007, Westaim announced it was conducting a strategic review of its business strategy to determine the optimal use of existing resources and assets to maximize value for shareholders. At March 31, 2007, Westaim had $51.7 million in consolidated cash and short-term investments, which includes $21.2 million of NUCRYST Pharmaceuticals Corp. cash and short-term investments. The gain on the sale will be recorded in the second quarter of 2007.
The Westaim Corporation's technology investments include iFire Technology Corp., which is developing a low-cost flat panel display technology, and a 74.8 per cent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX; NCS), which develops, manufactures and commercializes medical products that fight infection and inflammation based on its nanocrystalline silver technology. Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED and on the NASDAQ under the trading symbol WEDX.
This news release contains forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and Westaim can give no assurance that these expectations are correct. Various factors could cause actual results to differ materially from those projected in such statements, including but not limited to statements regarding NUCRYST's continued occupancy of premises. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
