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Abstract
(Marketwired - July 6, 2015) - Western Potash Corp. ("Western" or the "Company") (TSX:WPX) (FRANKFURT:AHE) is pleased to announce that Beijing Tairui Innovation Capital Management Ltd. ("Tairui") has agreed to make a strategic equity investment of C$80,000,000 (the "Investment Amount") in Western at a price of C$0.3213 per common share of Western (a "Common Share") for a total of 248,989,860 common shares in the capital of Western ("Common Shares"), subject to adjustment, which will result in Tairui holding a 51% ownership stake in the Company on a non-diluted basis on closing of the transaction ("Closing"). The per share issue price of C$0.3213 represents a 46% premium over the Company's volume weighted average price on the Toronto Stock Exchange for the 30 trading days ended July 3, 2015.
Under the terms of the investment agreement between Western and Tairui, Tairui will have the right to appoint four nominees to the board of directors of the Company. In addition, the investment agreement provides that the number of Common Shares issuable to Tairui and the per share issue price of C$0.3213 based on 248,989,860 Common Shares, are subject to adjustment in certain circumstances where additional Common Shares may be issued on or prior to Closing, such that Tairui will, in all such circumstances, hold a 51% ownership stake in the Company on a non-diluted basis on Closing.