Arena Investors Disclaimer

This section of Westaim’s website contains certain information and/or documents relating to Arena Investors, LP (“Arena Investors”), an investment manager in which Westaim holds a substantial interest. The information is being shown in order to provide information to Westaim shareholders in respect of a key investment, and is in no way an offer or solicitation for an investment in any Arena products or services. For a more detailed description of the business of Arena Investors, refer to Westaim’s annual information form dated March 25, 2021 in respect of the year ended December 31, 2020 available under Westaim’s profile on SEDAR at

Viewing the information contained herein may not be lawful in certain jurisdictions. In certain jurisdictions only certain categories of person may be permitted to view this information. The information published or made available herein is not intended to be published or made available in any jurisdiction where to do so would result in the breach of any applicable law or regulation in that jurisdiction or would subject any person or entity to any registration or licensing requirement in that jurisdiction. The information herein is not directed at you if we are prohibited by any law of any jurisdiction from making the information available to you.

The information herein does not constitute investment advice nor is it a recommendation or an offer of investment advisory services or products. No person in any jurisdiction may treat this document as a solicitation or offer of any advisory product or service. A prospective investor must rely solely on the terms and associated disclosures in any final offering memoranda, investment management agreement and associated subscription documents (if any), which would constitute the only basis upon which offerings of any product or service may be made.

Investments in Arena products and services are speculative in nature and involve risk. There can be no assurance that investment objectives will be achieved and investment results may vary substantially over time.

Currently, none of Arena Investors’ products are registered under the United States Investment Company Act of 1940 and accordingly are not extensively regulated. Opportunities for redemption and transferability of interests are restricted, so investors may not have access to capital when it is needed. Leverage may be employed in connection with strategies of Arena Investors, which can make investment performance volatile. Valuation of the investments may involve uncertainties and the exercise of judgment. An investor should not make an investment unless the investor is prepared to lose all or a substantial portion of its investment. The fees and expenses charged in connection with investments may be higher than the fees and expenses of other investment alternatives and may offset profits, and the performance-based compensation paid to Arena may create an incentive for Arena to make more speculative investments than would otherwise be the case. Arena has complete investment-decision making authority over its strategies—the use of a single advisor applying generally similar investment programs could mean a lack of diversification and, consequently, higher risk. Each product or service of Arena Investors is subject to numerous additional risks not listed here.

The information provided herein should not be considered a recommendation regarding a particular investment or strategy. The actual and potential investments discussed herein are meant to be examples of Arena Investors’ investment approach. It should not be assumed that any of the investments discussed herein will prove to be profitable, or that the investment recommendations or decisions made by Arena in the future will be profitable.

Underwritten IRRs:
Investment-level gross underwritten IRR represents the internal rate of return prior to or at the time of making the initial investment as reflected in and supported by loan agreements, including, but not limited to, note purchase agreements and origination agreements. The underwritten IRR is one of many metrics considered by Arena Investors prior to investment and is not typically updated after the initial funding date. The underwritten IRR may be presented as a single percentage or a range. Such gross IRRs are estimated and do not take into account any management fees, incentive allocation and/or any other associated fees, all of which may significantly reduce the net return attributable to any investment. These underwritten IRRs are not a proxy for investment performance for any strategy or product. The underwritten IRRs disclosed herein are being presented for the purpose of providing insight into the investment objectives of Arena Investors, detailing anticipated risk and reward characteristics in order to facilitate comparisons with other investments and for establishing a benchmark for future evaluation of Arena Investors’ strategy and, finally, to help Westaim shareholders better understand Arena Investors. The IRRs included herein are not intended, and must not be regarded, as a representation, warranty or prediction that any Arena Investors will achieve any particular return with respect to any particular investment opportunity or for a particular time period, or that Arena Investors and its investors, including Westaim, will not incur losses. In evaluating these IRRs, it should also be noted that (a) there can be no assurance that Arena Investors will be able to source and consummate investments of the type it is seeking to make and (b) the assumptions underlying the IRRs may prove not to be accurate or not materialize. There can be no assurance that the objective of the investment shown can be met or that substantial losses will be avoided.