HG Holdings, Inc. Announces Agreement to Acquire National Consumer Title Insurance Company From Southern Fidelity Insurance Company and Affiliates

Rhea-AI Summary

HG Holdings, Inc. (OTCQB: STLY) has agreed to acquire 100% of National Consumer Title Insurance Company (NCTIC) and National Consumer Title Group, LLC, which holds a 50% interest in Omega National Title Agency. The transaction is contingent upon regulatory approvals from the Florida Office of Insurance Regulation and other customary closing conditions. CEO Steve Hale expressed enthusiasm about entering the insurance industry through this title insurance platform, indicating potential growth opportunities.

Positive

• Acquisition of NCTIC and National Consumer Title Group may diversify revenue streams.
• Entry into the insurance sector could offer strategic growth and potential market expansion.

Negative

• Completion of the transaction depends on obtaining multiple regulatory approvals.
• Potential risks associated with the acquisition could affect operational stability.

HG Holdings, Inc. (OTCQB: STLY) announced that it has entered into an agreement to acquire 100% of the equity of National Consumer Title Insurance Company (“NCTIC”) and 100% of the interest in National Consumer Title Group, LLC, which indirectly owns 50% of the membership interest in Omega National Title Agency (“Omega”).

As a closing condition, all necessary regulatory approvals and governmental consents must be obtained, including those from the Florida Office of Insurance Regulation, and the parties currently expect to close the transactions contemplated by the Purchase Agreement upon receipt of such approvals and consents. Further, the consummation of the transactions contemplated by the Purchase Agreement is subject to certain specified closing conditions, including the receipt of certain third-party consents or approvals, the absence of a “material adverse effect” with respect to the NCTIC, NCTG, Omega and TAV (taken as a whole), and other customary closing conditions, including the accuracy of each party’s representations and warranties and each party’s compliance with its obligations and covenants under the Purchase Agreement.

Steve Hale, HG Holdings, Inc.’s Chairman and Chief Executive Officer commented: “Working with the owners and management of Southern Fidelity to complete this transaction was delightful, and we hope to find future ways to partner with them. We are excited about the prospects of entering the insurance industry via this title insurance platform.”

About the Company

HG Holdings, Inc. (the “Company”), through its interest in HC Government Realty Trust, Inc. (“HC Realty”), owns and operates real estate properties in the United States. HC Realty owns and operates a portfolio of 24 single-tenant properties leased for the occupancy by federal agencies, including the Federal Bureau of Investigation, the Drug Enforcement Administration, the Social Security Administration, and the Department of Transportation. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.

Forward-Looking Statements

These statements reflect our reasonable judgment with respect to future events and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include the occurrence of any event, change or other circumstance. Certain statements made in this news release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “may,” “will,” “should,” “could,” or “anticipates,” or the negative thereof or other variations thereon or comparable terminology that could give rise to the termination of the equity purchase agreement, an inability to complete the proposed transaction due to a failure to obtain the necessary regulatory approvals, as well as the other risks and uncertainties identified in filings by the Company with the Securities and Exchange Commission (“SEC”), including its periodic reports on Form 10-K and Form 10-Q. Any forward-looking statement speaks only as of the date of this news release and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Additional Information and Where to Find It

Stockholders of the Company may obtain relevant documents filed with the SEC (once they are available) free of charge at the SEC’s website at www.sec.gov or by directing a request to HG Holdings, Inc. at investor@hgholdingsinc.net or 2115 E. 7^th Street, Suite 101, Charlotte, NC 28204, Attn: Brad Garner.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428005747/en/

FAQ

What is the value of the acquisition involving STLY?

The press release does not specify the transaction value for the acquisition.

When is HG Holdings expected to close the acquisition of NCTIC?

HG Holdings expects to close the acquisition upon receiving necessary regulatory approvals.

What is the significance of the acquisition for STLY?

The acquisition allows STLY to enter the insurance industry, potentially generating new revenue streams.

What are the potential risks associated with STLY's acquisition?

The risks include the necessity of obtaining regulatory approvals and the possibility of material adverse effects.