Canada-based Kingsway Financial Services, a provider of automobile insurance services, has entered into an agreement with JJR VI Acquisition, a capital pool company listed on the TSX Venture Exchange.
According to Kingsway, the agreement is the part next step towards completion of the previously announced going-public transaction involving its wholly-owned subsidiaries American Insurance Acquisition(AIAI), American Country Insurance Company (ACIC) and American Service Insurance Company (ASI).
Pursuant to the agreement, Atlas Acquisition, a wholly-owned subsidiary of JJR VI, will merge with and into AIAI, JJR VI will be renamed Atlas Financial Holdings(Atlas) and Atlas will be continued under the laws of the Cayman Islands.
Following the completion of the merger, ACIC and ASI will be wholly-owned subsidiaries of Atlas.
Kingsway said it will retain approximately 75% of the equity and 30% of the voting rights of Atlas. Kingsway will also hold approximately $18m in preferred shares of Atlas.
Completion of the transaction is subject to a approval by the TSX Venture Exchange and by the Illinois Department of Insurance.