Mr. Scott Tannas reports

WESTERN INVESTMENT COMPANY SECURES AGREEMENT TO INCREASE OWNERSHIP IN FORTRESS INSURANCE TO 43% UPON CLOSING OF ITS PROPOSED TRANSACTION

The Western Investment Company of Canada Ltd. has secured an agreement to purchase one million shares in Fortress Insurance Company, or 14.22 per cent 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 per cent to 42.67 per cent upon closing of the transaction. The vendor's details are confidential and the vendor is not a related party to Western or Mr. 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. "Securing agreements for 51 per cent of Fortress's 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."

Acquisition of additional Fortress shares

In connection with Western acquiring additional shares of Fortress, Western plans to offer the existing Fortress shareholders the option of receiving cash or the current common shares of Western at a price of 40 cents 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 (and the related change of business).

Webcast -- join Mr. Tannas and Mr. Rivett as they discuss the proposed transaction

March 27, 2024, at 9 a.m. Mountain Time, 11 a.m. Eastern Time

On Wednesday, March 27, 2024, please join Mr. Tannas, president and CEO of Western, and Mr. Rivett, founder and president of Tevir Capital Corp., on a webcast where they will discuss the proposed Transaction and their vision for Western's strategy going forward. Participants of the live event will also have the opportunity to ask questions.

The webcast will take place at 11 a.m. Eastern Time, 10 a.m. Central Time, 9 a.m. Mountain Time and 8 a.m. Pacific Time.

Following the webcast a recording of the event will be available on-line.

About the transaction

The transaction, previously announced on March 22, 2024, proposes an investment of at least $20-million from companies affiliated with Mr. Rivett to transform Western into an insurance and investment holding company. The concurrent rights offering is expected to raise up to an additional $30-million. Upon the successful closing of the transaction, Mr. Rivett is to be appointed to president and chief executive officer of Western with the following initial priorities:

• Grow the Fortress platform to $100-million per annum in written premiums by 2028 through a combination of prudent organic growth and accretive acquisitions;
• Continue managing Western's non-insurance holdings as long-term investments.

Completion of the transaction (including any rights offering) is subject to the approval of the TSX Venture Exchange, shareholder approval and various other conditions. The transaction as contemplated constitutes a change of business under the policies of the TSX-V.

The previously announced investor relations service agreement with Market Climber remains subject to TSX-V approval.

About The Western Investment Company of Canada Ltd.

Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian businesspeople, and dedicated to building and maintaining ownership in successful Western Canadian companies, and helping them to grow. Western's shares are traded on the TSX Venture Exchange under the symbol WI.

We seek Safe Harbor.