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Oxbridge Re Holdings Ltd (NASDAQ:OXBR) announced Wednesday that it has entered into an Equity Distribution Agreement with Maxim Group LLC to offer and sell up to $5 million of its ordinary shares. The agreement allows the company to sell shares from time to time through Maxim Group as its sales agent.
According to the company’s statement in a Securities and Exchange Commission filing, the agreement will remain in effect until the earlier of the sale of all $5 million in shares or termination by either party with 30 days’ written notice. The company will pay Maxim Group a commission equal to 3.0% of the gross proceeds from any shares sold under the agreement.
Sales of the ordinary shares may be made in transactions deemed to be “at-the-market” offerings as defined by SEC rules, including sales on the Nasdaq Capital Market or other existing trading venues. The company is not obligated to sell any shares under the agreement and will instruct the sales agent on timing, price, and amount of shares to be sold.
This new agreement replaces a prior sales agreement with Maxim Group dated September 30, 2022, under which Oxbridge Re Holdings sold $4.6 million in ordinary shares.
Oxbridge Re Holdings stated that it intends to use any net proceeds from the offering for general corporate purposes, including funding its reinsurance operations. Pending use, proceeds may be invested in short-term, investment grade, interest-bearing instruments or held as cash.
The company registered up to $517,745 in ordinary shares under its existing shelf registration statement for this offering. Legal counsel Maples and Calder (Cayman) LLP has provided a legal opinion related to the shares.
This information is based on a press release statement and details disclosed in the company’s SEC filing.
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