Fortune Financial Raises Up to $17 Million in Capital
12 January 2001
Fortune Financial Raises Up to $17 Million in Capital
JACKSONVILLE, Fla.--Jan. 12, 2001--Fortune Financial, Inc. announced today that it has entered into an agreement to sell up to $15 million of its series A convertible preferred stock to The Crown Group, Inc. of Casselberry, Florida. Under the terms of the agreement, The Crown Group has purchased $10 million of preferred stock and has committed up to another $5 million over the next three years as business expansion opportunities arise. The preferred stock is convertible into 6,198,347 shares of Fortune Financial's common stock at a rate of $2.42 per share, subject to certain adjustments.Jack Koegel, CEO of The Crown Group, said, "We are excited to be a part of the turnaround occurring at Fortune Financial. We are a long term investor and look forward to a long, profitable relationship between our companies." John Wortman, President and CEO of Fortune Financial, said, "We believe this is a key day for our company. During the past year business operations have been significantly improved. We have upgraded our product and rate structures to strengthen our competitive position. We have developed and are implementing a long-term business plan to promote growth and profitability for the company. The confidence exhibited by The Crown Group is tremendous and our strengthened capital base will now support our planned growth."
Fortune Financial also announced that members of its Board of Directors have acquired another $2 million of series A convertible preferred stock under similar terms as The Crown Group.
Fortune Financial will use the proceeds of the transaction to support its primary product (automobile insurance) in the state of Florida.
Fortune Financial, Inc. is an insurance holding company headquartered in Jacksonville, Florida. The company underwrites property and casualty insurance, primarily through its wholly owned subsidiary, Fortune Insurance Company. Fortune Insurance Company is one of Florida's top providers of personal nonstandard automobile insurance products written through independent specialty agents.
Forward-Looking Statements
Statements made in this informational release are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements describe turnarounds in performance, business expansion opportunities and expectations of future profit results, and involve risks and uncertainties, which may cause actual results to differ materially from those, set forth. Investors and prospective investors are referred to the Company's Form 10-Q for the quarter ended September 30, 2000 and its most recent Form 10-K for the year ended December 31, 1999 for a more detailed discussion of the factors that could cause actual results to differ. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.