Leeward Group, a Delaware Corporation, specializing in commercial and residential insurance, has signed a non-binding letter of intent (LOI) which contemplates a proposed reverse merger with Principle Security International.
Under the terms of the non-binding LOI, Leeward would acquire 65% of outstanding common stock of PCPZ, pursuant to contemplated merger exchange agreement. Following the closing of expected merger, Leeward would emerge as the surviving company with a name and symbol change to follow.
According to Leeward, PCPZ shareholders would retain approximately 35% of the new company’s outstanding shares upon completion of expected merger. The merger is subject to a number of conditions, including signing of a definitive merger agreement, which is expected to be completed by end of May 2010, with the completion of financing arrangements between two parties, and positive final due diligence results reported on behalf of both parties.
Kevin Coughlin, CEO of Leeward, said: The greater access to capital and overall visibility afforded by operating as a publicly traded entity can play a significant role in our ability to expand both through acquisition and the organic growth of our existing business.