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/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER U.S. WIRE OR NEWS SERVICES/
TORONTO, Nov. 11 /CNW/ - EGI Financial Holdings Inc. (EGI) today announced that it has filed an amended and restated preliminary prospectus with the Canadian securities regulatory authorities in connection with an initial public offering and secondary offering of its common shares. The amended and restated preliminary prospectus includes additional financial information for the period ended September 30, 2005. The offering will be sold through a syndicate of underwriters led by CIBC World Markets Inc. and Dundee Securities Corporation and including TD Securities Inc. and GMP Securities Ltd.
Proceeds of the offering to the company will be used to repay debt, to
redeem its Series F special shares and to discontinue EGI's quota share
re-insurance program. The balance will be used to increase the company's underwriting capital to provide for future organic growth in written premiums, for possible future acquisitions and for working capital purposes. Co-operators General Insurance Company and L'Union Canadienne Compagnie D'Assurances will receive the proceeds from the secondary offering.
Founded in 1997, EGI operates in the property and casualty insurance
industry in Canada, primarily focusing on non-standard automobile insurance and other niche and specialty general insurance products. EGI is currently Canada's 48th largest overall and 26th largest automobile insurance company.
An amended and restated preliminary prospectus relating to these
securities has been filed with the securities regulatory authorities in each
of the provinces and territories of Canada but has not yet become final for the purpose of the sale of securities. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy, these securities in any province or territory of Canada before a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province or territory. Copies of the amended and restated preliminary prospectus may be obtained from www.sedar.com.
These securities have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or applicable exemption fromthe registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America.
For further information: Douglas E. McIntyre, Chief Executive Officer,
EGI Financial Holdings Inc., (905) 565-7960.
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