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/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER U.S. WIRE OR NEWS SERVICES/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, Dec. 1 /CNW/ - EGI Financial Holdings Inc. (EGI) today announced that it has entered into an underwriting agreement with a syndicate of underwriters led by CIBC World Markets Inc. and Dundee Securities Corporation and including TD Securities Inc. and GMP Securities Ltd., for an initial public offering and secondary offering of its common shares. EGI will issue 1,670,000 common shares at a price of $10.50 per common share, for total gross proceeds to EGI of $17,535,000. Co-operators General Insurance Company and L'Union Canadienne Compagnie D'Assurances will sell an aggregate of 1,670,000 EGI common shares, also at a price of $10.50 per share, for aggregate gross proceeds of $17,535,000.
EGI has also granted the underwriters an option to purchase an additional 500,000 common shares on the same terms and conditions, exercisable until 30 days following closing of the offering to cover over-allotments, if any, and for market stabilization purposes.
The Toronto Stock Exchange has conditionally approved the listing of
EGI's common shares, under the trading symbol EFH, subject to satisfaction of customary conditions of the Exchange. Closing of the offering is anticipated to occur on or about December 8, 2005.
Net proceeds to EGI from the offering 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.
Founded in 1997, EGI operates in the property and casualty insurance
industry in Canada, primarily focusing on non-standard automobile insuranceand other niche and specialty general insurance products. EGI is currently Canada's 48th largest overall and 26th largest automobile insurance company.
EGI has filed its prospectus relating to the offering with the Canadian
securities regulatory authorities. Copies of the prospectus may be obtained from www.sedar.com and from the underwriters of the offering.
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 from the 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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