CLEARWATER, Fla., March 31, 2011 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based provider of homeowners' insurance, today announced that it has completed an offering of Series A Cumulative Redeemable Preferred Stock, selling 1,247,700 shares of the preferred stock at price of $10 per share.
Dividends on the Series A Preferred Stock will be cumulative from the date of original issue and will accrue on the last day of each month at an annual rate of 7% of the $10 liquidation preference per share. Each share of the Series A Preferred Stock will be convertible, at the holder's option at any time, initially into one share of common stock based upon an initial conversion price of $10 per share. Beginning March 31, 2014, the Series A Preferred Stock will be subject to redemption by the company, and the conversion right of the shares will be subject to cancellation by the company, upon terms more specifically set forth in the terms of the Series A Preferred Stock as presented in the Prospectus and as filed with the Delaware Secretary of State.
The shares have begun trading on the NASDAQ Capital Market under the ticker symbol "HCIIP."
Anderson & Strudwick, Incorporated was the placement agent for the offering. Foley & Lardner LLP served as the issuer's outside legal counsel. A registration statement relating to this offering was declared effective by the U.S. Securities and Exchange Commission on Feb. 18, 2011. The offering was made only by means of a prospectus, copies of which may be obtained from Anderson & Strudwick by calling 1-800-767-2424
About Homeowners Choice, Inc.
Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Clearwater. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance. Founded in 2006, Homeowners Choice today serves approximately 65,000 policyholders throughout Florida representing approximately $135 million in annualized premiums. The company's common shares trade on the NASDAQ Global Select Market under the ticker symbol HCII and are included in the Russell Microcap Index. Warrants trade on the same market under the ticker symbol HCIIW. More information about Homeowners Choice, Inc. is available at www.hcpci.com.
The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712
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