Crosswinds Holdings closes $4.9M rights offering

Ted Liu

Crosswinds Holdings Inc. (TSX: CWI), formerly C.A. Bancorp Inc., a publicly traded private equity firm and asset manager targeting financial services sector with a particular focus on the insurance industry, has completed its previously announced rights offering which expired on February 28, 2017, raising gross proceeds of $4,880,115 through the issuance of 3,904,092 common shares at $1.25 per share.

Upon completion of the rights offering, the total number of issued and outstanding shares is now 9,208,099.

CDJ Global Catalyst LLC, an entity controlled by Colin King, CEO of Crosswinds, has advised that upon completion of the rights offering, it exercises control or direction over managed accounts representing an aggregate of approximately 52.3% of the issued and outstanding common shares.

CDJ controlled approximately 76% of outstanding shares prior the offering.

“We are pleased with the result of the Rights Offering which achieved the articulated dual objectives for the Rights Offering: raising funds and enhancing liquidity by increasing shareholder distribution, all while minimizing dilution to existing shareholders,” commented King.

Crosswinds intends to use the available funds for general working capital purposes, to fund Crosswinds’ reinsurance subsidiary, Crosswinds Re, and to explore InsurTech opportunities, however there may be circumstances where a reallocation of the available funds may be necessary. Crosswinds will reallocate funds only for sound business reasons.

photo credit: Crosswinds