- Upon execution of definitive agreements, Atlas will pay $7.5 million in cash.
- Additional cash from the exercise of outstanding Atlas warrants will also be paid to the current holders of Atlas’ preferred stock eligible for redemption. The exercise of all outstanding warrants, which expire on December 31, 2013, would generate CAN$7,541,030 in connection with the issuance of 1,256,843 shares of Atlas common stock.
- Any remaining unpaid portion of the $16.2 million purchase price will be owed by January 13, 2014, other than an amount up to $1 million, which will be owed by April 30, 2014. To the extent there is a balance owing, an annual interest rate of 4.5% will apply to such a balance through the final payment date.
Atlas Financial Holdings, Inc. (NASDAQ: AFH) (“Atlas” or the “Company”) today announced that it entered into a non-binding letter of intent to purchase all outstanding Atlas preferred shares that are eligible for redemption, for 90% of liquidation value, or $16.2 million. This transaction is to be structured as follows: