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Graham Jervis's avatar

Dean, have you ever looked at Westaim? $WED.V

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Dean's avatar

Hey Graham.

I haven't kept up with WED since I was turned off by the HIIG business a few years ago. What do you think would be a reasonable P/B for WED? I never seen it trade much above 1x P/B although Arena seems to be growing well.

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Graham Jervis's avatar

Hey Dean,

i believe there are near term catalysts coming up. Skyward their insurance company seems to be in the process of going public.

Arena, their asset management arm seems to have all the back office and infrastructure now in place to grow their AUM fees. based on the arrangement between WED and Arena, it seems a $24M loan payment is imminent from Arena to WED.

the other arrangement over time is that Arena will be buying ownership into WED up to 19.9% of WED shares on the open market.

WED is currently buying up shares on the market also.

So, i think this is a year that WED unlocks a shareholder value going forward.

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