IGI redeems warrants for $16.4 million

International General Insurance will redeem more than $16 million worth of warrants issued in 2018 after investors agreed to sell them to the company.

Bermuda-based IGI offered to buy two sets of warrants issued in connection with the initial public offering of Tiberius Acquisition in 2018. IGI merged with Tiberius in 2020, at which time it assumed responsibility for the warrants.

IGI tendered to buy the warrants for 95 cents a warrant earlier this year. The warrants were exercisable at a share price of $11.50. IGI shares currently trade on Nasdaq at a price of $11.40, having climbed from $8.05 in May.

IGI offered to purchase 12.75 million warrants to purchase IGI’s common shares which were publicly issued and sold as part of the units in the initial public offering of Tiberius Acquisition Corporation on March 20, 2018, and assumed by the Company on March 17, 2020. The company also offered to buy 4.5 million private warrants to purchase IGI’s common shares which entitled the warrant holders to purchase one of IGI’s common shares at an exercise price of $11.50.

At yesterday’s expiration of the offer, 12.05 million public warrants had been tendered and all 4.5 million private warrants had been tendered. The company expects to pay $15.7 million in cash in exchange for the tendered warrants by Friday.

IGI also received consent from the warrant holders to redeem the warrants not tendered for 86 cents a share and will redeem the warrants by October 4, at which point there will be no outstanding warrants. That will cost a further $700,000.