1347 Property Insurance Holdings, Inc. (Nasdaq: PIH) announced
today that it has priced an underwritten public offering of 640,000
shares of 8.00% Cumulative Preferred Stock, Series A ("Cumulative
Preferred Stock"), at a price of $25.00 per share, pursuant to a
registration statement on Form S-1 previously filed with the U.S.
Securities and Exchange Commission (the "SEC"). In addition, 1347
Property Insurance Holdings has granted the underwriters a 30-day
option to purchase up to an additional 96,000 shares of Cumulative
Preferred Stock. The offering is expected to close on or about
February 28, 2018, subject to customary closing conditions.
1347 Property Insurance Holdings expects to receive net proceeds
of approximately $14.9 million (or approximately $17.2 million if
the underwriter exercises its option to purchase additional shares
in full), after deducting estimated underwriting discounts and
commissions, structuring fees and estimated offering expenses. 1347
Property Insurance Holdings intends to use the net proceeds of the
offering to support organic growth, including spending for business
development, sales and marketing and working capital, future
potential acquisition opportunities, and to repurchase its Series B
Preferred Stock from IWS Acquisition Corporation, an affiliate of
Kingsway Financial Services, Inc.
Boenning & Scattergood, Inc. is acting as sole book-running
manager, with American Capital Partners, LLC and Joseph Gunnar
& Co., LLC acting as co-managers for the offering.
A registration statement relating to these securities has been
filed with, and declared effective by, the SEC. This press release
shall not constitute an offer to sell or a 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.
This offering will be made only by means of a written
prospectus. A copy of the prospectus for the offering may be
obtained, when available, from:
Boenning & Scattergood, Inc.Attention: Prospectus
DepartmentFour Tower Bridge, Suite 300200 Barr Harbor DriveWest
Conshohocken, PA 19428Telephone: (800) 883-1212Email:
Syndicate@Boenninginc.com
You may also obtain a copy of the prospectus free of charge
through the SEC's website, www.sec.gov, under the registrant's name
"1347 Property Insurance Holdings.”
About 1347 Property Insurance Holdings,
Inc.
1347 Property Insurance Holdings, Inc. is a specialized property
and casualty insurance holding company incorporated in Delaware.
The Company provides property and casualty insurance in Louisiana
and Texas through its wholly-owned subsidiary Maison Insurance
Company (“Maison”). Maison was recently licensed in the State of
Florida and began covering risks in the state via the assumption of
policies from Florida Citizens Property Insurance Corporation on
December 19, 2017. The Company’s insurance offerings for customers
currently include homeowners, wind and hail only, manufactured home
and dwelling fire policies.
Forward Looking
Statements
This press release contains forward-looking statements within
the meaning of federal securities laws, including statements
related to the timing and consummation of the offering of the
preferred stock and the expected use of the net proceeds therefrom.
We use words such as “anticipate,” “estimate,” “plan,” “project,”
“continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,”
“will,” “should,” “could,” and other similar expressions to
identify forward-looking statements. Such forward-looking
statements relate to future events or future performance, but
reflect management’s current beliefs, based on information
currently available. Although we believe that the plans,
objectives, expectations, and prospects reflected in or suggested
by our forward-looking statements are reasonable, those statements
involve risks, uncertainties, and other factors that may cause our
actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
express or implied by these forward-looking statements, and we can
give no assurance that our plans, objectives, expectations, and
prospects will be achieved.
Important factors that may impact any offering and cause our
actual results to differ materially from the results contemplated
by the forward looking statements are contained in the registration
statement for the offering, in Item 1A. Risk Factors and elsewhere
on the Company’s Form 10-K for the year ended December 31, 2016 and
in our subsequent filings with the SEC. These factors include, but
are not limited to, changes to business plans, as circumstances
warrant, and the offering of the preferred stock may not be
ultimately completed because of general market conditions and other
factors. These factors include, among others, the following: (i)
our limited operating history and status as an emerging growth
company; (ii) lack of future opportunities to participate in
take-out programs; (iii) the level of demand for our coverage and
the incidence of catastrophic events related to such coverage,
including the impact of climate change and our lack of geographic
diversification; (iv) our ability to successfully implement our
business strategy and expand our operations, including through
acquisitions and development of new products; (v) changes in
general economic, business, and industry conditions, including
cyclical changes in the insurance industry; (vi) our ability to
grow and remain profitable in the competitive insurance industry,
including our lack of a rating from A.M. Best; (vii) legal,
regulatory, and tax developments, including the effects of emerging
claim and coverage issues and increased litigation against the
insurance industry; (viii) legal actions brought against us; (ix)
damage to our reputation; (x) adequacy of our insurance reserves;
(xi) availability of reinsurance and ability of reinsurers to pay
their obligations; (xii) the failure of our risk mitigation
strategies or loss limitation methods; (xiii) our reliance on
independent agents to write our insurance and other third parties;
(xiv) our ability to maintain our public company status, exchange
listing and effective internal control systems; (xv) potential
conflicts of interest due to our affiliation with KFSI; (xvi) data
security breaches and other factors affecting our information
technology systems; (xvii) our ability to attract and retain
qualified employees, independent agents and brokers; (xviii) our
ability to meet our obligations or obtain additional capital on
favorable terms, or at all; (xix) our ability to accurately price
the risks that we underwrite; and (xx) restrictions on the use of
our net operating loss carryforwards.
We disclaim any obligation to update or revise any
forward-looking statements as a result of new information, future
events, or for any other reason.
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version on businesswire.com: http://www.businesswire.com/news/home/20180223005857/en/
1347 Property Insurance Holdings, Inc.Douglas N. Raucy,
813-579-6210Chief Executive
Officerdraucy@maisonins.comorInvestor Relations:The Equity
Group Inc.Jeremy Hellman, CFA, 212-836-9626Senior
Associatejhellman@equityny.com
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