Federal Life Group, Inc. Announces Change in OTC Markets Reporting Tier
Federal Life Group, Inc. (OTCMKTS: FLFG) announced that it will cease providing current information to the OTC Markets as of April 2023, expecting to downgrade to the OTC Expert Tier.
Sentiment and the balance of points
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Rhea-AI Summary
Federal Life Group, Inc. (OTCMKTS: FLFG) announced that it will cease providing current information to the OTC Markets as of April 2023, expecting to downgrade to the OTC Expert Tier. The company stated that it cannot guarantee continued trading of its common stock on the OTC Markets or any other exchange. This decision follows an evaluation of the costs and administrative burdens associated with reporting to the OTC Markets. The company anticipates significant savings from this move, which it deems financially meaningful. Federal Life Group operates through its subsidiary, Federal Life Insurance Company, providing life and health insurance and annuity products.
Positive
- Potential reduction in reporting costs and administrative burdens, leading to significant savings.
Negative
- Uncertainty regarding the continued trading of common stock on exchanges.
- Downgrade to the OTC Expert Tier may affect stock visibility and liquidity.
Details
News Market Reaction – FLFG
The recorded move for FLFG in the trading session of this news was -10.37%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
RIVERWOODS, Ill., April 25, 2023 (GLOBE NEWSWIRE) -- Federal Life Group, Inc. (the “Company”) (OTCMKTS: FLFG), the holding company of Federal Life Holding Company and its subsidiaries, today announced it will no longer provide current information to the OTC Markets in April 2023 and expects to drop to the OTC Expert Tier. The Company can give no assurance that trading in its common stock will continue on the OTC Markets or any other securities exchange or quotation medium.
The Company’s Form S-1, effective October 11, 2018, relating to the Company’s initial public offering discussed the additional financial, reporting and corporate governance requirements associated with being a listed, reporting company, and the significant commitment of additional expense and other resources that would be required. In line with this disclosure, and after review and careful consideration of the administrative burden and costs and benefits of reporting to the OTC Markets, the Company has made the decision to cease providing information to the OTC Markets, which is expected to result in the Company dropping down reporting tiers on the OTC markets. The savings derived from this are expected to be financially meaningful.
About Federal Life Group, Inc.
The Company is the holding company for Federal Life Holding Company and its subsidiaries, which include Federal Life Insurance Company, an Illinois domiciled insurance company. Federal Life Insurance Company is an independently operated provider of quality life and health insurance and annuity products. For more information, please visit www.federallife.com, https://aboutus.federallife.com/022823/.
| Contact: | Investor Relations IR@federallife.com | |
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