1347 Property Insurance Holdings Inc. priced an underwritten public offering of 640,000 shares of 8.00% cumulative preferred stock series A at a price of $25.00 per share.
The company has granted the underwriters a 30-day option to purchase up to an additional 96,000 preferred shares.
The offering is subject to customary closing conditions and is expected to close on or about Feb. 28.
Net proceeds to the company from the offering are expected to be approximately $14.9 million, or approximately $17.2 million if the underwriter exercises its option to purchase additional shares in full, after deducting estimated underwriting discounts and commissions, structuring fees and estimated offering expenses.
The company intends to use the net proceeds to support organic growth, including spending for business development, sales and marketing and working capital, future potential acquisition opportunities, and to repurchase its series B preferred stock from Kingsway Financial Services Inc. affiliate IWS Acquisition Corp.
Boenning & Scattergood Inc. is acting as sole book-running manager for the offering. American Capital Partners LLC and Joseph Gunnar & Co. LLC are acting as co-managers.