CORRECT and REPLACE: Shift Completes Merger with Insurance Acquisition Corp. on its Path to Public Listing, Transaction Delivers $340 Million to Support Growth and Working Capital

Rhea-AI Summary

Shift has completed its merger with Insurance Acquisition Corp., transitioning to a public listing with NASDAQ ticker symbol SFT. This merger, approved by INSU's stockholders on October 13, 2020, provides Shift with approximately $300 million for growth and working capital. The company aims to disrupt the $840 billion used car market, having achieved nearly 30% year-over-year revenue growth in Q3 2020. Shift plans to discuss further details in an investor conference call on October 15, 2020.

Positive

• Merger brings approximately $300 million for growth initiatives.
• Achieved nearly 30% year-over-year revenue growth in Q3 2020.
• Expands public market presence with ticker symbol SFT.

Negative

• None.

SAN FRANCISCO, Oct. 14, 2020 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Insurance Acquisition Corp. (NASDAQ: INSU) and Shift, please note that dates included in the press release were incorrect. Shift will begin trading on NASDAQ under the ticker symbol “SFT” and its senior management will host an investor conference call on October 15, 2020, not October 14, 2020, as previously stated. The corrected release follows.

Shift Completes Merger with Insurance Acquisition Corp. on its Path to Public Listing, Transaction Delivers $340 Million to Support Growth and Working Capital

Shift will begin trading on NASDAQ under ticker SFT on October 15, 2020

Shift’s senior management to host investor conference call on October 15, 2020 at 8:00am EDT

Shift, a leading end-to-end ecommerce platform for buying and selling used cars, and Insurance Acquisition Corp. (Nasdaq: INSU), a publicly traded special purpose acquisition company sponsored by Cohen & Company (NYSE American: COHN), have announced the closing of their previously announced business combination. The business combination, which was approved on October 13, 2020, by INSU’s stockholders, brings the newest pure-play in the used car ecommerce market to the public markets. The transaction provides Shift with approximately $300 million, net of fees and expenses. Beginning October 15, 2020, Shift’s shares of Class A common stock will trade on the Nasdaq under the ticker symbol “SFT” and warrants under ticker symbol “SFTTW.” Shift’s co-CEOs, George Arison and Toby Russell, will host an investor update call on October 15, 2020 at 8:00am EDT.

Shift has built a state-of-the-art automotive ecommerce company powered by its unique technology platform and service model. Leveraging proprietary technology, Shift delivers a comprehensive and seamless process for consumers to buy, sell, trade, finance, and own used cars.

“Today marks an important milestone for our company. With the support of our shareholders, we have completed the merger with Insurance Acquisition Corp. and fortified our cash position with $300 million to invest in growing our business. We are thrilled to bring Shift to the public markets, fulfilling our long-term plan to be a publicly listed company,” commented George Arison, Shift co-CEO.

Toby Russell, Shift Co-CEO, commented, “We started Shift in 2014 with a vision to transform the antiquated used car market, ripe for disruption. Through the strength of our technology suite and dedication of our employees, we have grown into a leading ecommerce platform, disrupting the more than $840 billion used car market. We accelerated year-over-year revenue growth to nearly 30% in the third quarter and continue to expect strong growth for the full year. We are pleased to enter the public market with this positive momentum and look forward to reporting our full third quarter financial results on our first earnings call in November.”

“We are pleased with the transaction’s completion. Today’s vote is a testament to our excitement, and the excitement of our shareholders, in bringing Shift to the public markets,” said Daniel Cohen, Chairman of Insurance Acquisition Corp. "We are confident in the strength of Shift’s management team and business model, and we look forward to seeing its continued success as a public company.”

Conference Call Information

Shift’s founders and co-CEOs George Arison and Toby Russell will host a conference call on October 15, 2020 at 8:00 am EDT to discuss the close of the transaction and their entrance to the public market. An audio webcast of the call will be available on Shift’s investor relations website at https://investors.shift.com/. The call may also be accessed by dialing (833) 614-1395 for domestic callers or (914) 987-7116 for international callers and providing conference ID 7657773.

About Shift

Shift is a leading end-to-end auto ecommerce platform transforming the used car industry with a technology-driven, hassle-free customer experience. Shift’s mission is to make car purchase and ownership simple — to make buying or selling a used car fun, fair, and accessible to everyone. Shift provides comprehensive, digital solutions throughout the car ownership lifecycle: finding the right car, having a test drive brought to you before buying the car, a seamless digitally-driven purchase transaction including financing and vehicle protection products, an efficient, digital trade-in/sale transaction, and a vision to provide high-value support services during car ownership. For more information, visit www.shift.com.   

Caution Regarding Forward Looking Statements

This document includes "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward looking statements include estimated financial information. Such forward looking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of Shift’s business are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements. These factors include, but are not limited to: (1) the risk that the business combination disrupts Shift’s current plans and operations; (2) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, Shift’s ability to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (3) costs related to the business combination; (4) changes in applicable laws or regulations; (5) the possibility that Shift may be adversely affected by other economic, business, and/or competitive factors; (6) the operational and financial outlook of Shift; (7) the ability for Shift to execute its growth strategy; and (8) other risks and uncertainties indicated from time to time in other documents filed or to be filed with the Securities and Exchange Commission ("SEC") by Shift. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Shift undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Investor Relations:
Mark Roberts, Blueshirt Capital Markets
IR@shift.com

Media Contact:
Jeff Fox, The Blueshirt Group
jeff@blueshirtgroup.com

FAQ

What is the significance of Shift's merger with Insurance Acquisition Corp.?

The merger allows Shift to access $300 million for growth, enhancing its market position in the used car ecommerce industry.

When will Shift start trading on NASDAQ under the ticker SFT?

Shift will begin trading on NASDAQ on October 15, 2020.

What revenue growth did Shift report for Q3 2020?

Shift reported nearly 30% year-over-year revenue growth for Q3 2020.

What are Shift's future plans after the merger?

Shift intends to invest the capital from the merger into expanding its operations and enhance its technology platform.