Oxbridge Re, along with its subsidiaries, has made a significant announcement regarding a registered direct offering and a concurrent private placement totaling $3.0 million. The company has entered into a securities purchase agreement with a single institutional investor to acquire 705,884 ordinary shares through this registered direct offering.
In conjunction with this offering, Oxbridge Re will also issue unregistered Series A Warrants, which allow for the purchase of up to 529,413 ordinary shares, and unregistered Series B Warrants for the purchase of up to 882,355 ordinary shares as part of the private placement. The effective offering price for each ordinary share, along with the accompanying warrants, is set at $4.25.
The Series A Warrants will be immediately exercisable and will expire two years after issuance, with an exercise price of $4.25. Conversely, the Series B Warrants will become exercisable only after receiving shareholder approval or six months from the date of issuance, and they carry a five-year expiration period. The offering is anticipated to close around February 26, 2025, with Maxim Group serving as the sole placement agent.
In the announcement, Oxbridge Re emphasized that, “The Series A Warrants and Series B Warrants to be issued in the concurrent private placement, along with the ordinary shares that can be purchased upon exercising such warrants, were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, and under Regulation D promulgated thereunder. These securities have not been registered under the Act or applicable state securities laws.”
This capital raise marks a pivotal moment for Oxbridge as it transitions from its traditional reinsurance business model towards the innovative domain of tokenized Real-World Assets (RWAs). The company is initially focusing on tokenized reinsurance securities and developing reinsurance solutions tailored for property and casualty insurers operating in the Gulf Coast region of the United States.
