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Oxbridge Re Holdings Limited (NASDAQ:OXBR), a small-cap reinsurance company with a market capitalization of $23.34 million, has announced the launch of a new digital token offering through its subsidiary SurancePlus Inc. According to InvestingPro data, the company’s stock has shown significant volatility, with a remarkable 318% return over the past year. The offering, which commenced on Tuesday, February 26, 2025, involves Participation Shares represented by two types of digital tokens, "ZetaCat Re" and "EtaCat Re."
The offering aims to issue up to one million Participation Shares at an initial price of $10.00 each, with discounts available for larger investments. These tokens do not represent equity in SurancePlus or Oxbridge Re Holdings and carry no preemptive or conversion rights. Instead, they offer contractual rights against SurancePlus as detailed in the Participation Share Investment Contract (PSIC). InvestingPro analysis reveals that while the company maintains strong liquidity with a current ratio of 2.99, it currently trades at a relatively high Price/Book multiple of 6.69x.
Proceeds from the sale of Participation Shares will be used to purchase participating notes from Oxbridge Re NS, an affiliated Cayman Islands licensed reinsurance entity. The funds from these notes will then be invested in collateralized reinsurance contracts. Participation Shareholders are entitled to a preferred return of the initial share price plus 20%, followed by 80% of any excess proceeds.
The Securities have not been registered under the Securities Act of 1933 and will be sold in compliance with Regulation S and SEC Rule 506(c), targeting accredited investors in the U.S. and non-U.S. persons internationally. The company has made it clear that this report does not constitute an offer to sell or a solicitation of an offer to buy the Securities.
This strategic move by Oxbridge Re Holdings is furnished under the Securities Exchange Act of 1934, and the information herein is not filed for purposes of Section 18 of the Act. It should not be incorporated into any filing under the Securities Exchange Act or Securities Act unless specified by reference in such a filing. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and a detailed Fair Value assessment, suggesting the stock may be currently overvalued. The Pro Research Report provides extensive coverage of OXBR’s financial health, market position, and growth prospects.
The company cautions that the statements in this report contain forward-looking information subject to risks and uncertainties. The actual outcomes could differ materially from those projected. The company has no obligation to update these forward-looking statements, except as required by law. This news is based on a press release statement.
In other recent news, Oxbridge Re Holdings Limited announced a private placement offering to raise up to $5 million through the sale of its subsidiary SP Holdings’ ordinary shares. This initiative includes private placement warrants for purchasing up to 625,000 ordinary shares of Oxbridge Re, valid for four years. The proceeds are intended for general corporate purposes and to support the growth of SP Holdings’ Web-3 segment. In a separate development, Oxbridge Re disclosed that it has not received any claims related to Hurricanes Helene and Milton. The company has capped its potential maximum loss at $1.7 million as of December 31, 2024, due to these hurricanes. This disclosure was made to provide transparency regarding its exposure to natural disaster events. The company has noted that the actual outcomes may differ from current expectations. Investors are encouraged to review Oxbridge Re’s SEC filings for detailed information on financial health and risk exposure.
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