FG Nexus sells majority stake in reinsurance division to focus on ETH

CHARLOTTE - FG Nexus Inc. (NASDAQ:FGNX), a $138 million market cap company, announced Thursday an agreement to sell a majority stake in its reinsurance division to Devondale Holdings LLC, a company led by industry veteran Tom Heise, as part of a strategic shift to focus on Ethereum accumulation. According to InvestingPro data, the company maintains a healthy current ratio of 1.71, indicating strong short-term liquidity.

Under the terms of the deal, FG Nexus will receive approximately $3 million in cash, a $1.25 million note, and retain 40% equity ownership in Devondale. The transaction is subject to regulatory approval and satisfaction of closing conditions.

"This transaction sharpens our focus on Ethereum and reallocates resources toward ETH accumulation," said Maja Vujinovic, CEO of Digital Assets at FG Nexus, in a press release statement.

The divested business includes FG Reinsurance Ltd. and FG Re Solutions Limited, which will operate independently under Heise’s leadership. Heise, who previously served as Chief Executive of the FG Reinsurance Division, brings over 25 years of leadership experience in the reinsurance industry.

According to the company, Devondale plans to grow the reinsurance portfolio while implementing blockchain technology to tokenize reinsurance assets, potentially enhancing liquidity and transparency for investors.

Kyle Cerminara, CEO of FG Nexus, noted that the reinsurance division had developed into a profitable business under Heise’s guidance, and the company looks forward to maintaining its relationship as a minority stakeholder.

FG Nexus describes itself as focused on becoming a significant corporate holder of Ethereum, implementing staking and other yield strategies while serving as a gateway into Ethereum-powered finance.

In other recent news, FG Nexus Inc. has been in the spotlight with several significant developments. The company filed a resale registration statement to register 40 million shares of its common stock, linked to a $200 million private placement. As part of this, pre-funded warrants for over 3.4 million shares remain unexercised. Additionally, FG Nexus reported selling over 2.1 million shares under its $5 billion at-the-market offering. In a strategic move, Fundamental Global, soon to be renamed FG Nexus, filed a $5 billion shelf registration to bolster its Ethereum acquisition strategy. This filing includes an at-the-market offering prospectus for $4 billion in common stock, pending SEC approval. On the analyst front, B.Riley initiated coverage on FG Nexus with a Buy rating, highlighting the company’s focus on securing a stake in the Ethereum network. These developments mark a period of strategic financial maneuvers for FG Nexus.

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