WP Stewart & Co. Ltd. has sold an aggregate of 5,010,000 of its common shares to five funds managed by Arrow Capital Management LLC in a private placement pursuant to its previously disclosed Investment Agreement with the Arrow Funds.

The common shares were purchased at a price per share of $1.60 for a total consideration of approximately $8 million.

In addition, the company has been advised by the Arrow Funds that they also purchased aggregate of 16,690,930 common shares in their tender offer for up to 19,902,000 of the company's common shares, which tender offer expired last Monday.

After giving effect to the Arrow Funds' purchase of a total of 21,700,930 common shares in the private placement and the tender offer, the Arrow Funds will hold in the aggregate approximately 39.2 percent of the outstanding common shares of the company. However, the Arrow Funds are limited by the company's bye-laws to a 24 percent aggregate voting interest in the company, with each of the Arrow Funds limited to a voting interest of 9.5 percent individually.

The company and Arrow Capital Management have begun discussions regarding areas of possible co-operation between the two companies.