Presurance Holdings completes $14 million rights offering

Presurance Holdings Inc. (NASDAQ: PRHI) completed its rights offering on February 27, raising $14 million in gross proceeds through the issuance of 14 million shares at $1.00 per share.

The Michigan-based property and casualty insurance holding company issued 4,284,640 shares through direct subscription rights exercises. Clarkston Companies Inc. and its assignee purchased the remaining 9,715,360 unsubscribed shares under a backstop agreement dated February 3.

The company used a portion of the proceeds to redeem its Series B Preferred Stock and pay all accrued dividends on those shares. The remaining funds will support general corporate purposes.

Subscription rights that were not exercised by 5:00 p.m. Eastern Time on February 24 expired without value. The rights offering was conducted under a registration statement on Form S-1 that became effective February 6.

The backstop commitment ensured full subscription of all 14 million shares offered, with Clarkston guaranteeing purchase of any unsubscribed shares at the $1.00 offering price.

Presurance Holdings provides specialty insurance coverage through its subsidiaries and trades on the Nasdaq Capital Market. The company previously disclosed details of the rights offering in a Form 8-K filing on January 28.

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