FedNat Holding Company Announces Pricing of Offering of Common Stock
March 12 2021 - 6:00AM
FedNat Holding Company (Nasdaq: FNHC), a regional insurance holding
company, announced that it has priced an underwritten public
offering of 3,500,000 shares of its common stock at a price to the
public of $4.75 per share for gross proceeds of $16.625 million.
The net proceeds from the sale of the shares, after deducting the
underwriter’s discount and other estimated offering expenses
payable by the Company, will be approximately $15.2 million. In
addition, the underwriter has been granted a 30-day option to
purchase up to 525,000 additional shares of common stock from the
Company at the public offering price, less the underwriter’s
discount.
The Company will use the net proceeds from the sale of the
common stock for general corporate purposes, including to provide
additional liquidity in its holding company to be available for
future capital contributions to its insurance company subsidiaries,
if necessary. The closing of the offering is subject to market and
other conditions and is expected to close on March 15, 2021.
Piper Sandler & Co. is serving as sole bookrunner for the
offering.
The offering is being made pursuant to an effective shelf
registration statement (File No. 333-225464) previously filed with
the U.S. Securities Exchange Commission (“SEC”). A preliminary
prospectus supplement related to the offering was filed with the
SEC on March 5, 2021. A final prospectus supplement and
accompanying prospectus describing the terms of the offering will
be filed with the SEC on March 12, 2021 and will be available on
its website at http://www.sec.gov. Alternatively, the underwriter
will arrange to send you the prospectus and prospectus supplement
if you request it by calling toll free at 866-805-4128.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. Any offer of these securities will be solely by means
of the prospectus included in the registration statement and the
prospectus supplement that will be issued in connection with the
offering.
About the Company
FedNat Holding Company is a regional insurance holding company
that controls substantially all aspects of the insurance
underwriting, distribution and claims processes through our
subsidiaries and contractual relationships with independent agents
and general agents. The Company, through its wholly owned
subsidiaries FedNat Insurance Company, Maison Insurance Company,
and Monarch National Insurance Company, is focused on providing
homeowners insurance in Florida, Texas, Louisiana, Alabama, South
Carolina and Mississippi. More information is available at
https://www.fednat.com/investor-relations/.
Forward-Looking Statements
Except for historical information contained herein, this press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to,
statements about the Company’s expectations regarding the
completion, terms, size, and timing of the public offering, and
with respect to granting the underwriters a 30-day option to
purchase additional shares. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. These statements are based on management’s current
expectations and beliefs and are subject to a number of risks,
uncertainties and assumptions that could cause actual results to
differ materially from those described in the forward-looking
statements, including risks and uncertainties related to completion
of the public offering on the anticipated terms or at all, market
conditions and the satisfaction of customary closing conditions
related to the public offering, and those factors described in the
“Risk Factors” section of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2019, and the Company’s Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31,
2020, June 30, 2020, and September 30, 2020, all of which have been
filed with the Securities and Exchange Commission.
Contacts
Michael H. Braun, CEO (954) 308-1322
Ronald Jordan, CFO (954) 308-1363
Bernard Kilkelly, Investor Relations (954) 308-1409,
or investorrelations@fednat.com
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