FG Financial Group, Inc. Investment in SPAC Aldel Financial platform finalized combination with Hagerty



ST. PETERSBURG, Fla .– (COMMERCIAL THREAD) –FG Financial Group, Inc. (Nasdaq: FGF, FGFPP) (the “Company”), a reinsurance and investment management holding company focused on opportunistic, guaranteed and loss-capped reinsurance, while allocating capital in partnership with Fundamental Global® to SPAC-related companies and SPAC sponsors, has announced today that its SPAC platform partner, Aldel Financial (“Aldel”) (NYSE: ADF) has completed its previously announced business combination with Hagerty, an automotive enthusiasts brand offering a platform for specialized auto insurance based on a membership organization for car enthusiasts. The business combination was approved by Aldel shareholders at a meeting held on December 1, 2021.

Aldel Financial now operates under the name Hagerty, Inc., and began trading on the NYSE under the symbol “HGTY” on Friday, December 3, 2021.

FG Financial Group beneficially owns approximately 533,000 common shares of Hagerty and approximately 321,000 warrants at $ 15 per common share.

FG Financial Group CEO Larry Swets, Jr. commented, “We congratulate Aldel on this exciting combination with Hagerty, an innovative and well-known automotive enthusiast brand with an eminently scalable model. FG Financial is deliberate in its assessment and support of investment opportunities and we are delighted to see the successful merger of Aldel, our first SPAC partner on the SPAC platform, with a proven and rapidly growing business in a market attractive. We are delighted to be shareholders of this company and we remain committed to finding similar new opportunities for capital allocation as part of our PSPC strategy.

Hagerty is a leading provider of specialty auto insurance, with approximately 2 million cars insured globally, a Net Sponsor Score (NPS) of 84, and partnerships with nine of the top 10 U.S. auto insurers. The company has invested in a unique business model that integrates omnichannel distribution, risk management and reinsurance, as well as subscription and membership with a rich first-party data source to generate multiple revenue streams and multiple compelling business benefits for Hagerty. The Company’s omnichannel insurance distribution model allows Hagerty to scale through national insurance partners, local agents and brokers, and direct distribution.

The Company’s automotive offering portfolio includes Hagerty Drivers Club (1.8 million members), Hagerty Drivers Club magazine (1.2 million readers), Hagerty YouTube (1.75 million subscribers), Big Three competition, a nationwide collection of premium car storage and social facilities. called Hagerty Garage + Social and DriveShare, a peer-to-peer service that lets people rent cool vintage cars. For more information, please visit www.hagerty.com

FG Financial Group, Inc.

FG Financial Group, Inc. is a reinsurance and investment management holding company that focuses on opportunistic guaranteed and loss-capped reinsurance, while allocating capital in partnership with Fundamental Global® to SPAC and related companies to sponsors of PSPC. The principal business activities of the Company are carried out through its subsidiaries and affiliates.

The FG® logo is a registered trademark of Fundamental Global®.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of those laws. These statements can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “budget”, “can”, “contemplate”, “continue”, “might”, “” “expect to “,” assess “,” foresee “,” objective “,” direction “,” indicate “,” intend “,” probable “,” could “,” could “,” prospect “,” plan “, “possibly”, “potential”, “predict”, “probable”, “probably”, “pro-forma”, “project”, “seek”, “should”, “target”, “view”, “will”, “would”, “will”, “continue”, “probably will” or the negative of it or other variations of it or comparable terminology. In particular, discussions and statements concerning future The Company’s business plans and initiatives are forward-looking in nature. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. es. Although we believe they are reasonable, these forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, and may affect our ability to make to implement and execute our future business plans. and initiatives. Management cautions that the forward-looking statements contained in this press release are not guarantees of future performance, and we can not assume that any such statements will materialize or that forward-looking events and circumstances will occur. Factors that may cause such a difference include, but are not limited to: market conditions and risks associated with our limited business operations since the sale of our insurance business in December 2019 (the “Sale of Assets”) ; risks associated with our inability to identify and realize business opportunities, and the realization of any new such opportunities, as a result of the sale of assets; our ability to spend or invest the net proceeds from the sale of assets in a manner that generates a favorable return; general conditions in the global economy, including the impact of health and safety issues related to the current outbreak of the COVID-19 coronavirus; our lack of operating history or established reputation in the reinsurance industry; our inability to obtain or maintain the approvals necessary to operate reinsurance subsidiaries; risks associated with operations in the reinsurance industry, including inadequately priced insured risks, credit risk associated with brokers with whom we may do business and inadequate retrocession coverage; our inability to execute our investment and investment management strategy, including our investment strategy in real estate assets; potential loss of value of investments; risk of becoming an investment company; fluctuations in our short-term results as we implement our new business strategy; the risks of not being able to attract and retain qualified management and personnel to implement and execute our business and growth strategy; failure of our IT systems, data breaches and cyber attacks; our ability to establish and maintain an effective system of internal controls; our limited operating history as a publicly traded company; the requirements to be a public company and lose our status as a small company reporting or become a fast-filing; any potential conflict of interest between us and our controlling shareholders and the different interests of the controlling shareholders; potential conflicts of interest between us and our directors and executive officers; the volatility or decline of the common shares of FedNat Holding Company that we receive in consideration for the sale of assets or the limitations and restrictions on our ownership of those shares; the risks of being a minority shareholder of FedNat Holding Company; and the risks of our inability to continue to meet Nasdaq continuous listing standards after the completion of the asset sale.



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