TORONTO, Sept. 22, 2014 /CNW/ - (TSX: KFS, NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced the successful completion of the redemption of its Series A Warrants. During the redemption notice period, 3,279,945 Series A Warrants, representing 99.97% of the outstanding Series A Warrants, were exercised by the holders, raising approximately US$14.8 million in capital for the Company. Larry G. Swets, Jr., the Company's President and Chief Executive Officer, stated, "This capital raise strengthens our balance sheet while providing us additional resources to support our merchant banking initiatives."
Holders had until 5:00 p.m. Eastern Time on September 19, 2014 to exercise their outstanding warrants at US$4.50 per common share. 845 Series A Warrants that remain unexercised will be redeemed by the Company at a redemption price of US$0.25 per Series A Warrant.
The Company's Series B Warrants are unaffected by this redemption.
About the Company
Kingsway is a holding company functioning as a merchant bank with a focus on long-term value-creation. The Company owns or controls stakes in several insurance industry assets and utilizes its subsidiaries, 1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting as an advisor, an investor and a financier. The common shares of Kingsway are listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol "KFS."
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects", "believes", "anticipates", "intends", "estimates", "seeks" and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect Kingsway management's current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, please refer to the section entitled "Risk Factors" in the Company's 2013 Annual Report on Form 10-K. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: Kingsway Financial Services Inc.