On August 31, 2015, Westaim established and capitalized the operations of Arena Investors, LP (“Arena Investors”), which operates as a U.S.-based investment manager; established and capitalized Arena Finance in the amount of approximately US$146 million to facilitate the acquisition, holding and possible future sale of fundamentals-based, asset-oriented credit investments; and established and capitalized Arena Origination in the amount of approximately US$34 million to facilitate the origination of fundamentals-based, asset-oriented credit investments for its own account and/or for possible future sale to Arena Finance, clients of Arena Investors and/or other third parties. Together, Arena Finance and Arena Origination are known as Arena FINCOs as defined in Westaim’s MD&A.

Fundamentals-based, asset-oriented credit investments refer to loans or credit arrangements which are generally secured by assets. These assets could include hard assets such as real estate, inventory, vehicles, aircraft, watercraft, oil and gas reserves, or a borrower’s plant and equipment and other hard assets, or soft assets such as securities, receivables, contractual income streams, and certain intellectual property types. Fundamentals-based, asset-oriented lenders manage their risk and exposure by carefully assessing the value of the assets securing the loan, receiving periodic and frequent reports on collateral value and the status of those assets, and tracking the financial performance of borrowers.

For more information about Arena Investors, its people and products, visit Arena’s website www.arenaco.com