Western Financial to make $20 million offering

Alberta-based broker network and bank Western Financial Group Inc. (TXS: WES) says it has priced an offering of 9 million subscription receipts at $2.15 each for gross proceeds of $19.35 million. The offering, set to close on February 3, also includes an over-allotment option for underwriters to purchase up to 1.35 more subscription receipts at the $2.15 price. The syndicate of underwriters, led by CIBC World Markets, includes Canaccord Capital, First Associates Investments and Jennings Capital.Western Financial says the proceeds will go to fund its acquisition of Federated Life Insurance Co. of Canada, which is expected to close by the end of February. This is Western’s second offering raising funds for the purchase.The subscription receipts entitle holders to receive one common share of Western Financial once the Federated purchase is complete. If the Federated acquisition does not close by the end of March, holders will receive the price of the subscription plus interest.