Oxbridge Re Holdings Ltd. (OXBR) stock prices were down by 2.52% as of the market closing on July 19th, 2021, bringing the price per share down to USD$3.48 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall by another 7.47%, bringing it down to USD$3.22.
Registration Statement Filed
July 19th, 2021 saw the company’s SPAC and indirect subsidiary, Oxbridge Acquisition, file a Registration Statement on Form S-1 with the Securities and Exchange Commission. The Registration Statement submitted to the SEC was in regard to a proposed initial public offering of the company’s units. The lead investor in Oxbridge Acquisition’s sponsor is the company’s wholly-owned licensed reinsurance subsidiary, Oxbridge Reinsurance Ltd.
Oxbridge Expansion
The investment is being made as a part of Oxbridge’s reinsurance business plan, wherein Oxbridge Reinsurance anticipates investing in SPACs that are sponsored and/or managed by OXBR management. The aim of these investments is to facilitate capital growth and surplus of Oxbridge Reinsurance over the long term. Following this move, Oxbridge Acquisitions plans to allocate resources towards the disruptive technology market, with a focus in the insurance technology (InsurTech), blockchain, and AI technology sectors.
Details of the Offering
As per the filing of Form S-1, the proposed public offering is anticipated to have a base offering size of USD$100 million, which could be bumped up to USD$115 million in the event of underwriters exercising the over-allotment option in full. With Oxbridge Acquisitions being directly initially owned by OAC sponsor, organized and initiated by the company’s executive officers, OAC is set to own 20% of the common stock issued upon the consummation of the offering.
Improved Financials
The quarter ended March 31st, 2021 saw the company report having generated net income in the amount of USD$28,000, representing breaking even on a per basic and diluted common share basis. This is a significant improvement from the USD$264,000 net loss reported for the same quarter of the prior year, which represented a net loss of USD$0.06 per basic and diluted common share. The year-over-year improvement was largely driven by a positive change in the fair value of the company’s equity securities, as compared to the financial markets having been devastated by the onset of the Covid-19 pandemic in the prior-year quarter.
Future Outlook for OXBR
Armed with confidence-inspiring improvements in its financials, OXBR is set to expand its foray into burgeoning key sectors such as cryptocurrency and insurance technology. The company is keen to expand its network of acquisitions to usher in significant and sustained growth over the long term.
