ST. PETERSBURG, Florida – (COMMERCIAL THREAD) –FG Financial Group, Inc. (Nasdaq: FGF, FGFPP) (the âCompanyâ), a reinsurance and investment management holding company focused on opportunistic, guaranteed and loss-capped reinsurance while allocating capital to PSPC and companies related to PSPC sponsors, today announced that its partner of the SPAC platform, Aldel Financial (âAldelâ) (NYSE: ADF) has entered into a definitive business combination agreement with Hagerty, a brand of auto enthusiasts offering a specialized auto insurance platform based on a membership organization for car enthusiasts.
Upon closing of the transaction, Aldel will be renamed Hagerty, Inc. and become publicly traded, with its common shares to be listed on the New York Stock Exchange under the symbol HGTY.
FG Financial’s investments in Aldel Financial represent beneficial interests in approximately 533,000 Aldel shares and approximately 321,000 warrants to purchase Aldel common shares at a price of $ 15.00 per share.
Details of the transaction are available in Aldel Financial’s press release issued this morning and available here.
FG Financial Group CEO Larry Swets, Jr. commented, âWe could not be more pleased with this merger announcement for Aldel, our second SPAC and the first SPAC partner on the SPAC platform. Hagerty is a differentiated and rapidly growing company in an attractive market and we look forward to being shareholders and sharing in the success of the company.
FG Financial Group, Inc.
FG Financial Group, Inc. is a reinsurance and investment management holding company focused on opportunistic guaranteed and capped loss reinsurance while providing capital to PSPC and companies related to PSPC sponsors. The main business activities of the Company are carried out through its subsidiaries and affiliates.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the âSecurities Actâ), and Section 21E of the Securities Exchange Act of 1934, as amended (the âSecurities Actâ). “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 terms such as “anticipate”, “believe”, “budget”, “may”, “contemplate”, “continue”, “might”, “” expect “, “assess”, “foresee”, “objective”, “direction”, “indicate”, “intend”, “probable”, “may”, “could”, “prospect”, “plan”, “possibly” , “potential”, “predict”, “probable”, “probably”, “pro forma”, “project”, “seek”, “should”, “target”, “view”, “will”, “would”, “Will”, “will continue”, “will probably result” or the negative thereof or other variations thereof or comparable terminology. In particular, discussions and statements regarding future business plans and initiatives of the Company are forward-looking in nature. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. 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 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 âSale of Assetsâ) ; risks associated with our inability to identify and realize business opportunities, and the realization of 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 of 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 operating 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 such 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.