A Midwestern life insurer, Federal Life Group Inc., has completed raising about $35 million through a public stock offering, then shifted to being just a little bit public.
The Riverwoods, Illinois-based company moved its common stock to the OTC Pink Open Market, or Pink Sheets securities quotation service, from the Nasdaq Capital Market system, effective Monday.
(Related: Federal Life Goes Public)
Federal Life shares now trade on the Pink Sheets system under the stock symbol FLFG.
“Such quotation will continue so long as market makers demonstrate an interest in trading in the Company’s common stock; however, the Company can give no assurance that trading in its common stock will continue on the Pink Sheets or any other securities exchange or quotation medium,” Federal Life said in a statement about the listing shift. “Further, trading of the Company’s common stock on the Pink Sheets may be restricted depending on the jurisdiction in which potential purchasers or sellers of shares reside.”
OTCMarkets.com shows that Federal Life shareholders made eight substantial trades, involving 2,700 shares of stock, Tuesday; and one substantial trade, involving 100 shares of stock, Wednesday.
Shares have been selling this year for prices between $10.77 and $14.24.
Griffin Financial Group LLC, an investment bank in Reading, Pa., helped Federal Life Insurance Company convert to a stock company structure through a stock offering process in December 2018.
The offering process raised a total of about $35 million.
Federal Life had to spend about $3 million on the offering process, and it was able to keep about $32 million.
Insurance Capital Group LLC accounted for about $27 million of the offering proceeds, by either buying Federal Life shares or by arranging for other shares purchases, according to Griffin Financial.
ICG is now Federal Life’s controlling shareholder.
ICG is a New York-based investment firm led by two Reservoir Capital veterans, Craig Huff and Matt Popoli. The ICG board includes Jose Montemayor, a former Texas insurance commissioner, and Anne Dowling, a former Illinois insurance director.
Federal Life now sells immediate income annuities, deferred income annuities, final expense life insurance, and other life and annuity products aimed at middle-market households.
The company reported a net loss of $4.8 million for 2018 on $21 million in revenue, according to an annual statement filed with the U.S. Securities and Exchange Commission.
The company ended the year with about 26,000 policyholders and group certificate holders, about 2,000 annuity contract holders, and $280 million in total assets.
The company has said that it plans to use its share of proceeds to add variable annuity and indexed annuity products.
— Read 9 Federal Life Insurance Company Reboot Facts, for Agents, on ThinkAdvisor.