British Columbia Resources Investment Corporation
Encyclopedia
The British Columbia Resources Investment Corporation, or BCRIC was a holding company
formed under the government of William R. Bennett. The company took over ownership of various sawmills and mines that had been bought and bailed out by the government. The name was eventually changed to Westar Group Ltd.
The most famous aspect of the company were the five free bearer shares, dated August 7, 1979 that were distributed to all British Columbia
ns, to promote investment in the province, and earn back a profit to the buyer. British Columbians and investors were encouraged to buy more. The company expanded, and bought a numerous mining and logging installations.
Unfortunately, because of significant investment in a North Sea
oil play by a subsidiary, Westar Petroleum, as well as bad timing in a mining investment by another subsidiary, Westar Mining, the company ran into financial trouble. Investors saw their thousands of dollars dwindle to pennies.
In 1995, the shares were consolidated at a ratio of 125 to 1. At that time, 5 bearer shares were worth .008 (or 0.8%) of one post-consolidation share. In June 1997, the consolidated shares were subject to a compulsory buy-out at $70 each (i.e. 56 cents per bearer share) as part of a privatization
transaction by the Jim Pattison Group
. However, the buyout had a 10 year limit which expired on June 30, 2007 and, as a result, outstanding share certificates no longer have any value.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
formed under the government of William R. Bennett. The company took over ownership of various sawmills and mines that had been bought and bailed out by the government. The name was eventually changed to Westar Group Ltd.
The most famous aspect of the company were the five free bearer shares, dated August 7, 1979 that were distributed to all British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
ns, to promote investment in the province, and earn back a profit to the buyer. British Columbians and investors were encouraged to buy more. The company expanded, and bought a numerous mining and logging installations.
Unfortunately, because of significant investment in a North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
oil play by a subsidiary, Westar Petroleum, as well as bad timing in a mining investment by another subsidiary, Westar Mining, the company ran into financial trouble. Investors saw their thousands of dollars dwindle to pennies.
In 1995, the shares were consolidated at a ratio of 125 to 1. At that time, 5 bearer shares were worth .008 (or 0.8%) of one post-consolidation share. In June 1997, the consolidated shares were subject to a compulsory buy-out at $70 each (i.e. 56 cents per bearer share) as part of a privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
transaction by the Jim Pattison Group
Jim Pattison Group
The Jim Pattison Group is Canada’s third largest privately held company and, in a recent survey by the Financial Post, The Jim Pattison Group was ranked as Canada’s 62nd largest company. Jim Pattison, a Vancouver-based entrepreneur is the Chairman, President, CEO, and sole owner of the Jim Pattison...
. However, the buyout had a 10 year limit which expired on June 30, 2007 and, as a result, outstanding share certificates no longer have any value.