FedNat Holding Company Announces Closing of Offering of Common Stock

Rhea-AI Summary

FedNat Holding Company (Nasdaq: FNHC) has successfully closed a public offering of 3,500,000 shares of common stock, priced at $4.75 per share, raising gross proceeds of $16.625 million. After expenses, the net proceeds amount to approximately $15.2 million. The funds will enhance liquidity for potential capital contributions to its insurance subsidiaries. Additionally, the underwriter has a 30-day option to purchase up to 525,000 additional shares. Piper Sandler & Co. acted as the sole bookrunner for this offering.

Positive

• Raised approximately $15.2 million in net proceeds to enhance liquidity for future capital contributions.
• The offering includes a 30-day option for underwriters to acquire an additional 525,000 shares.

Negative

• None.

SUNRISE, Fla., March 15, 2021 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC), a regional insurance holding company, announced the closing of an underwritten public offering of 3,500,000 shares of its common stock at a price of $4.75 per share for gross proceeds of $16.625 million. The offering generates net proceeds to the Company of approximately $15.2 million, after deducting the underwriter’s discount and estimated offering expenses payable by the Company. 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.

Piper Sandler & Co. served as sole bookrunner for the offering.

A final prospectus supplement and accompanying prospectus describing the terms of the offering has been filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the securities offered may also be obtained by contacting the underwriter 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 is solely by means of the prospectus included in the registration statement and the prospectus supplement 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

FAQ

What are the details of FedNat Holding Company's recent stock offering?

FedNat Holding Company closed an underwritten public offering of 3,500,000 shares at $4.75 per share, generating gross proceeds of $16.625 million.

How will the proceeds from the stock offering be used?

The proceeds will be used for general corporate purposes, including enhancing liquidity for potential future capital contributions to its insurance subsidiaries.

Who was the underwriter for the FedNat stock offering?

Piper Sandler & Co. served as the sole bookrunner for the stock offering.

What is the potential impact of the stock offering on FNHC shareholders?

While the offering will provide additional liquidity, it may also lead to dilution of existing shares if the underwriters exercise their option to purchase additional shares.