Citizens Granted Regulatory Approval To Purchase Class B Shares Giving Control Back To The Company

Rhea-AI Summary

Citizens, Inc. (CIA) announced regulatory approval on April 12, 2021, allowing the Harold E. Riley Foundation to transfer its Class B common stock back to the company. The transaction, finalized on March 5, 2021, involved a purchase price of $9,090,463.80. As a result, all Class B shares were reclassified as treasury stock, ensuring only Class A shares remain voting shares. This shift marks a significant change, as for the first time in over 30 years, Citizens is no longer a controlled company, empowering its leaders to focus on growth and shareholder interests.

Positive

• Regulatory approval for Class B stock transfer enhances company control.
• Elimination of prior distractions enables focus on growth and shareholder value.

Negative

• None.

AUSTIN, Texas, April 16, 2021 /PRNewswire/ -- Citizens, Inc. (NYSE: CIA) today announced that on April 12, 2021, final regulatory approval was granted, enabling the Harold E. Riley Foundation (the "Foundation") to transfer all of the Class B common stock back to Citizens, Inc.

As previously disclosed, on February 5, 2021, Citizens, Inc. entered into a Purchase and Sale Agreement with the Foundation to purchase 100% of the Company's Class B common stock from the Foundation at an aggregate purchase price of $9,090,463.80 (the "Class B Transaction") which was paid on March 5, 2021. 

As a result of the Class B Transaction:

• All of the Foundation's Class B common stock was transferred back to the Company as of April 12, 2021
• Class B common stock is reclassified as authorized, but unissued treasury stock
• Citizens Board has resolved that the Class B common stock will not be voted and thus the Company has only one class of voting shares outstanding (Class A common stock)
• One class of directors representing the best interest of all shareholders equally

J.D. "Chip" Davis, Jr., Chairman of the Board, said, " This is a tremendous milestone and essential turning point in the Company's history.  For the first time in more than 30 years, we are not a controlled company.  With Citizens regaining control, the Company and Board of Directors can chart its own course and act in the best interest of all shareholders."

Gerald W. Shields, Vice-Chairman of the Board and Interim CEO, said, "We are thrilled to have eliminated such a significant distraction.  We are excited about the future ahead and the ability to focus our undivided attention on growth and delivering sustainable value while executing the strategic initiatives that are important to meeting the needs of our policyholders." 

About Citizens, Inc.

Citizens, Inc. is a financial services company listed on the New York Stock Exchange under the symbol CIA. The Company utilizes a three-pronged strategy for growth based upon worldwide sales of U.S. Dollar-denominated whole life cash value insurance policies, life insurance product sales in the U.S. and final expense and limited liability property product sales in the U.S. 

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate", "intends," "continue" or comparable words.  In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements.  Readers are encouraged to read the periodic reports the Company files with the Securities and Exchange Commission, particularly its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and its current reports on Form 8-K, for "Risk Factors" and other meaningful cautionary language disclosing why actual results may vary materially from those expected or implied by the forward-looking statements.  The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company's expectations.  Accordingly, you should not unduly rely on these forward-looking statements.  The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.

For further information contact:
Investor Relations
PR@citizensinc.com

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SOURCE Citizens, Inc.

FAQ

What was the recent regulatory approval for Citizens, Inc. (CIA)?

On April 12, 2021, Citizens, Inc. received regulatory approval to transfer Class B common stock back to the company from the Harold E. Riley Foundation.

How much did Citizens, Inc. pay for the Class B stock?

Citizens, Inc. paid $9,090,463.80 for the Class B common stock in a transaction finalized on March 5, 2021.

What does the Class B stock transfer mean for Citizens, Inc.?

The transfer means Citizens, Inc. is no longer a controlled company, allowing it to operate with only Class A voting shares.

When was the stock transfer from the Harold E. Riley Foundation completed?

The stock transfer was completed on April 12, 2021.

What strategic changes can Citizens, Inc. expect after regaining control?

With regained control, Citizens, Inc. can focus on strategic initiatives to enhance growth and deliver value to shareholders.