Oxbridge Announces Pricing of $3.0 Million Registered Direct Offering and Concurrent Private Placement
Oxbridge Re Holdings (Nasdaq: OXBR) has announced a $3.0 million registered direct offering and concurrent private placement. The company has entered into a securities purchase agreement with a single institutional investor to purchase 705,884 ordinary shares at an effective price of $4.25 per share.
The concurrent private placement includes unregistered Series A Warrants to purchase up to 529,413 ordinary shares and Series B Warrants to purchase up to 882,355 ordinary shares. Series A Warrants will be immediately exercisable with a two-year expiration and $4.25 exercise price, while Series B Warrants will be exercisable after shareholder approval or 6 months from issuance with a five-year expiration.
The offering is expected to close around February 26, 2025, with Maxim Group acting as the sole placement agent. The ordinary shares are being offered through a shelf registration statement, while the warrants are offered in a private placement under Section 4(a)(2) of the Securities Act of 1933.
Oxbridge Re Holdings (Nasdaq: OXBR) ha annunciato un offerta diretta registrata di 3,0 milioni di dollari e un collocamento privato concomitante. L'azienda ha stipulato un accordo di acquisto di titoli con un singolo investitore istituzionale per l'acquisto di 705.884 azioni ordinarie a un prezzo effettivo di 4,25 dollari per azione.
Il collocamento privato concomitante include Warrant di Serie A non registrati per l'acquisto fino a 529.413 azioni ordinarie e Warrant di Serie B per l'acquisto fino a 882.355 azioni ordinarie. I Warrant di Serie A saranno immediatamente esercitabili con una scadenza di due anni e un prezzo di esercizio di 4,25 dollari, mentre i Warrant di Serie B saranno esercitabili dopo l'approvazione degli azionisti o 6 mesi dalla emissione con una scadenza di cinque anni.
Si prevede che l'offerta si chiuda intorno al 26 febbraio 2025, con il Maxim Group che agirà come unico agente di collocamento. Le azioni ordinarie vengono offerte tramite una dichiarazione di registrazione a scaffale, mentre i warrant sono offerti in un collocamento privato ai sensi della Sezione 4(a)(2) del Securities Act del 1933.
Oxbridge Re Holdings (Nasdaq: OXBR) ha anunciado una oferta directa registrada de 3,0 millones de dólares y un colocación privada concurrente. La compañía ha firmado un acuerdo de compra de valores con un único inversor institucional para adquirir 705,884 acciones ordinarias a un precio efectivo de 4,25 dólares por acción.
El colocación privada concurrente incluye Warrant de Serie A no registrados para comprar hasta 529,413 acciones ordinarias y Warrant de Serie B para comprar hasta 882,355 acciones ordinarias. Los Warrant de Serie A serán ejercitables de inmediato con una expiración de dos años y un precio de ejercicio de 4,25 dólares, mientras que los Warrant de Serie B serán ejercitables tras la aprobación de los accionistas o 6 meses después de la emisión con una expiración de cinco años.
Se espera que la oferta cierre alrededor del 26 de febrero de 2025, con Maxim Group actuando como el único agente de colocación. Las acciones ordinarias se ofrecen a través de una declaración de registro de estante, mientras que los warrants se ofrecen en un colocación privada bajo la Sección 4(a)(2) de la Ley de Valores de 1933.
옥스브리지 리 홀딩스 (Nasdaq: OXBR)는 300만 달러의 등록 직접 공모와 동시 사모 방식의 자금 조달을 발표했습니다. 이 회사는 단일 기관 투자자와 705,884주를 주당 4.25달러의 유효 가격으로 구매하는 증권 구매 계약을 체결했습니다.
동시 사모에는 529,413주를 구매할 수 있는 등록되지 않은 A시리즈 워런트와 882,355주를 구매할 수 있는 B시리즈 워런트가 포함됩니다. A시리즈 워런트는 즉시 행사 가능하며 2년의 만기와 4.25달러의 행사 가격을 갖고, B시리즈 워런트는 주주 승인 후 또는 발행 후 6개월에 행사 가능하며 5년의 만기를 가집니다.
이번 공모는 2025년 2월 26일 경에 마감될 것으로 예상되며, Maxim Group이 단독 배치 대행사로 활동합니다. 보통주는 선반 등록 명세서를 통해 제공되며, 워런트는 1933년 증권법 제4(a)(2)조에 따른 사모 방식으로 제공됩니다.
Oxbridge Re Holdings (Nasdaq: OXBR) a annoncé une offre directe enregistrée de 3,0 millions de dollars et un placement privé concomitant. La société a conclu un accord d'achat de titres avec un seul investisseur institutionnel pour acheter 705 884 actions ordinaires à un prix effectif de 4,25 dollars par action.
Le placement privé concomitant comprend des bons de souscription de série A non enregistrés permettant d'acheter jusqu'à 529 413 actions ordinaires et des bons de souscription de série B permettant d'acheter jusqu'à 882 355 actions ordinaires. Les bons de souscription de série A seront immédiatement exerçables avec une expiration de deux ans et un prix d'exercice de 4,25 dollars, tandis que les bons de souscription de série B seront exerçables après approbation des actionnaires ou 6 mois après leur émission avec une expiration de cinq ans.
L'offre devrait se clôturer autour du 26 février 2025, avec le Maxim Group agissant en tant qu'agent de placement exclusif. Les actions ordinaires sont offertes par le biais d'une déclaration d'enregistrement par étagère, tandis que les bons de souscription sont offerts dans le cadre d'un placement privé en vertu de la section 4(a)(2) de la loi sur les valeurs mobilières de 1933.
Oxbridge Re Holdings (Nasdaq: OXBR) hat ein registriertes Direktangebot über 3,0 Millionen Dollar und eine gleichzeitige Privatplatzierung angekündigt. Das Unternehmen hat einen Wertpapierkaufvertrag mit einem einzigen institutionellen Investor abgeschlossen, um 705.884 Stammaktien zu einem effektiven Preis von 4,25 Dollar pro Aktie zu erwerben.
Die gleichzeitige Privatplatzierung umfasst nicht registrierte Serie-A-Warrants zum Kauf von bis zu 529.413 Stammaktien und Serie-B-Warrants zum Kauf von bis zu 882.355 Stammaktien. Serie-A-Warrants sind sofort ausübbar und haben eine Laufzeit von zwei Jahren bei einem Ausübungspreis von 4,25 Dollar, während Serie-B-Warrants nach der Genehmigung durch die Aktionäre oder 6 Monate nach der Ausgabe mit einer Laufzeit von fünf Jahren ausübbar sind.
Es wird erwartet, dass das Angebot etwa am 26. Februar 2025 abgeschlossen wird, wobei die Maxim Group als alleiniger Platzierungsagent fungiert. Die Stammaktien werden über eine Shelf-Registrierungserklärung angeboten, während die Warrants im Rahmen einer Privatplatzierung gemäß Abschnitt 4(a)(2) des Securities Act von 1933 angeboten werden.
- Raising $3.0 million in capital
- Single institutional investor participation indicates confidence
- Structured financing through shares and warrants provides flexibility
- Potential dilution for existing shareholders
- Warrant exercise could lead to additional dilution
- Offering price of $4.25 may represent a discount to market price
Insights
Oxbridge Re's $3 Million Capital Raise: Dilutive Financing with Complex Warrant Structure
Oxbridge Re (NASDAQ: OXBR) has secured $3 million in gross proceeds through a complex financing arrangement with a single institutional investor - a significant capital infusion representing approximately 10.5% of the company's current $28.5 million market capitalization.
The structure of this deal raises several red flags. The company is selling ordinary shares at $4.25, a substantial 14% discount to the current market price, while simultaneously issuing two series of warrants that could lead to significant future dilution. If all warrants are eventually exercised, this could result in the issuance of up to 1.41 million additional shares - potentially diluting existing shareholders by over 24% on a fully diluted basis.
The Series B warrants are particularly concerning, with a five-year term and a variable exercise price that could be set at the Nasdaq minimum price (typically $1.00), potentially allowing the investor to acquire shares at a steep discount to current levels. This structure suggests the company faced challenges securing more favorable financing terms.
This capital raise comes at a pivotal time as Oxbridge transitions from its traditional reinsurance business toward tokenized Real-World Assets. While the Gulf Coast reinsurance market has faced significant challenges from increased hurricane activity and climate change impacts, the pivot toward tokenized securities represents a speculative but potentially higher-growth opportunity.
The reliance on a single institutional investor rather than a broader offering indicates market interest or possibly a strategic relationship. Investors should monitor the identity of this investor when disclosed, as it may provide insights into future corporate direction.
After accounting for placement fees and expenses, the net proceeds will likely be around $2.7 million, which provides a modest runway extension but may not be sufficient for long-term operational needs, suggesting the possibility of additional dilutive financings in the future.
This financing appears to be a necessary but costly capital raise that prioritizes short-term liquidity over long-term shareholder value, reflecting the challenging position of small-cap reinsurers attempting to pivot toward new business models.
GRAND CAYMAN, Cayman Islands, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (Nasdaq: OXBR) (“Oxbridge Re”), together with its subsidiaries which is engaged in the business of tokenized Real-World Assets (“RWAs”) initially in the form of tokenized reinsurance securities, and reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United State, today announced that it has entered into a securities purchase agreement with a single institutional investor to purchase 705,884 ordinary shares in a registered direct offering. In a concurrent private placement, the Company also agreed to issue and sell unregistered Series A Warrants to purchase up to an aggregate of 529,413 ordinary shares, and unregistered Series B Warrants to purchase up to an aggregate of 882,355 ordinary shares. The combined effective offering price for each ordinary share and the accompanying Series A Warrants and Series B Warrants is
The combined gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately
Maxim Group LLC is acting as the sole placement agent in connection with the offering.
The ordinary shares are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-262590), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 6, 2022. The offering of ordinary shares will be made only by means of a prospectus supplement that forms a part of such registration statement. A prospectus supplement relating to the ordinary shares offered in the registered direct offering will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3500.
The Series A Warrants and Series B Warrants to be issued in the concurrent private placement and the ordinary shares issuable upon exercise of such warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Oxbridge Re Holdings Limited
Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries SurancePlus Inc., Oxbridge Re NS, and Oxbridge Reinsurance Limited.
Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.
Our Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.
Forward-Looking Statements
All statements in this release that are not based on historical fact are “forward-looking statements,” including within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The information in this announcement may contain forward-looking statements and information related to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views with respect to future events-based information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.
Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
+1 345-749-7570
jmadhu@oxbridgere.com
FAQ
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