TORONTO, July 23, 2019 /CNW/ - Echelon Financial Holdings Inc. ("EFH" or the "Company") (TSX: EFH) today provided an update on the proceeds related to the sale of Echelon Insurance, and announced that it will release its second quarter financial results after market close on Tuesday, August 6, 2019.
Echelon Insurance sale proceeds
As previously disclosed, EFH agreed to sell Echelon Insurance for a sale price of C$175 million, subject to adjustments and subject to Echelon Insurance having a Minimum Capital Test Ratio ("MCT") on the closing date of May 31, 2019 of 220%. Funds were set aside at closing to be paid into Echelon Insurance if the MCT at closing was less than 220%. After the adjustments related to closing and a payment from the escrowed funds of C$8 million to fix the MCT calculation at 220%, the net proceeds to EFH from the sale of Echelon Insurance are approximately C$170.3 million, less expenses related to the sale. The final expense number will be included in the Company's Q2 financial statements.
About Echelon Financial Holdings Inc.
Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit efh.ca.
SOURCE Echelon Financial Holdings Inc.
For further information: Company contact information: Teddy Chien, Chief Financial Officer, [email protected]