TORONTO, Jan. 27, 2012 /PRNewswire via COMTEX/ —
/quotes/zigman/12668 CA:KFS
+3.33%
/quotes/zigman/12653/quotes/nls/kfs KFS
+1.64%
Kingsway Financial Services Inc. (“Kingsway” or the
“Company”) today announced that it is implementingan action to effect
a reverse stock split of the Company’s common stock. The action is
intended to ensure that Kingsway remains in compliance with the New
York Stock Exchange (NYSE) continued listing standards.The action has
been approved in principal by the Company’s Board of Directors and
remains subject to final Board action and shareholder approval.
Kingsway is conducting the reverse stock split in conjunction with
reviewing various other strategic alternatives including possible
acquisitions or mergers to enhance shareholder value.
Kingsway has notified the NYSE of its intention to address through a
reverse stock split its non-compliance with the NYSE continued listing
requirement that the average closing price of a security not be lower
than $1.00 per share over a consecutive 30 trading-day period (the
minimum share price requirement). The Company’s common stock continues
to be listed on the NYSE and trades as usual subject to the NYSE’s
continued listing standards and monitoring.
In addition to bringing the Company into compliance with the NYSE’s
continued listing standards, the Company’s Board believes a reverse
stock split would have the additional benefit of attracting a broader
range of institutional and other investors. The Board also believes
that a higher share price will reduce per share transaction fees and
certain administrative costs.
The Company plans to submit the reverse stock split for shareholder
approval at its regular Annual Meeting of Shareholders to be held in
May and will implement the approved action promptly thereafter. The
time, date, location and other details regarding the meeting, and
additional information on the treatment of fractional shares and other
effects of the reverse stock split, will be communicated to
shareholders at a later date.
The Company encourages shareholders to read the materials relating to
its Annual Meeting of Shareholders when they become available, because
they will contain important information regarding the proposed reverse
stock split and other matters. These materials, when available, and the
Company’s other securities filings can be accessed on the Canadian
Securities Administrators’ website at
www.sedar.com , on the EDGAR
section of the U.S. Securities and Exchange Commission’s website at
www.sec.gov or through the Company’s website at
www.kingsway-financial.com.
Forward Looking Statements
This press release includes “forward looking statements,” including
statements regarding the expected timetable for a reverse stock split,
which are subject to risks and uncertainties. Such forward looking
statements relate to future events or performance, but reflect Kingsway
management’s current beliefs, based on information currently available.
A number of factors could cause actual events, performance or results
to differ materially from the events, performance and results discussed
in the forward looking statements, including: our high level of
indebtedness; our ability to service our debt and comply with debt
covenants; our ability to improve our operating performance; our
ability to implement our long-term growth strategies and to identify
and execute on strategic initiatives; our ability to maintain share
price and trading activities at acceptable levels; and our ability to
comply with regulatory requirements and the requirements of stock
exchanges.
For information identifying additional important factors that could
cause actual results to differ materially from those anticipated in the
forward looking statements, see Kingsway’s securities filings,
including its 2010 Annual Report under the heading “Risk Factors” in
the “Management’s Discussion and Analysis” section. Except as expressly
required by applicable securities law, the Company disclaims any
intention or obligation to update or revise any forward looking
statements whether as a result of new information, future events or
otherwise.
About the Company
Kingsway Financial Services Inc. is an insurance holding company. The
Company’s primary businesses are the insuring and servicing of
automobile risks for drivers who do not meet the criteria for coverage
by standard automobile insurers. The common shares of the Company are
listed on the Toronto Stock Exchange and the New York Stock Exchange,
under the trading symbol “KFS”.
SOURCE Kingsway Financial Services Inc.
Copyright (C) 2012 PR Newswire. All rights reserved
/quotes/zigman/12668
Add KFS to portfolio
CA:KFS
/quotes/zigman/12653/quotes/nls/kfs