04:41 PM EDT, 03/26/2024 (MT Newswires) -- The Western Investment Company of Canada Limited (WI.V), Tuesday announced that it has secured an agreement to purchase 1 million shares in Fortress Insurance Company, or 14.22% of the total shares outstanding in Fortress, for $2.6 million.

The share purchase is conditional on the closing of the previously announced proposed transaction with companies affiliated with Paul Rivett to invest at least $20 million into the corporation.

The share purchase will increase Western's ownership in Fortress from 28.45% to 42.67% upon closing of the transaction. The vendor's details are confidential and the vendor is not a related party to Western or Paul Rivett.

"Acquiring additional shares in Fortress is an essential part of transforming Western into an insurance and investment holding company," said Scott Tannas, President and Chief Executive Officer of Western, in a statement. "Securing agreements for 51% of Fortress' shares is a condition of the Transaction, and we will make additional announcements as we sign-up additional share purchase agreements on our way to this threshold. The board and I firmly believe that the transformation of Western into an insurance and investment holding company, with a focus on compounding book value per share through prudent organic growth and accretive acquisitions, will provide our shareholders with the best return over the long-term."

In connection with Western acquiring additional shares of Fortress, Western plans totoffer the existing Fortress shareholders the option of receiving cash or the current common shares of Western at a price of $0.40 per share which could result in the issuance of up to an additional 30 million single voting shares.

Acquisition of the additional Fortress shares is expected to occur concurrent with closing of the transaction.