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Atlas Financial to redeem eligible preferred shares for $16.2 million
By Tali David
Minneapolis, July 8 - Atlas Financial Holdings, Inc. entered into a non-binding letter of intent to purchase all outstanding Atlas preferred shares that are eligible for redemption for $16.2 million, or 90% of liquidation value, according to a press release.
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 Dec. 31, 2013, would generate C$7,541,030 in connection with the issuance of 1,256,843 shares of Atlas common stock, the release said.
Any remaining unpaid portion of the $16.2 million purchase price will be owed by Jan. 13, 2014, other than an amount up to $1 million, which will be owed by April 30, 2014. An annual interest rate of 4.5% will apply to the remaining balance, if any, through the final payment date.
The financial services holding company is based in Elk Grove Village, Ill.
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