TORONTO, June 18, 2012 /PRNewswire/ - (TSX: KFS) (NYSE: KFS) Kingsway Financial
Services Inc. ("Kingsway" or the "Company") today announced that its
Board of Directors (the "Board") received and granted an exemption
request under its tax benefit preservation plan (the "Plan") to Joseph
Stilwell, a member of the Board. The Plan was implemented September
28, 2010 to protect the value of the Company's net operating losses
(the "NOLs") accumulated in the Company's United States subsidiaries.
While the Plan is designed to penalize the economic interests of any
person or group which acquires 5% or more of the Company's outstanding
common shares without approval of the Board, it also provides a limited
grandfathering provision for existing 5% plus shareholders of the
Mr. Stilwell, directly or indirectly through funds he owns or controls,
owns 16.8% of the common shares of Kingsway and is eligible to submit
exemption requests through the grandfathering provision of the Plan.
An exemption to purchase up to an additional 2% of shares on the open
market was received by the Company on June 13, 2012. As approved by
the Board, Mr. Stilwell's exemption is conditioned upon a two-week
waiting period to allow other investors interested in considering
exemption requests to petition the Board as well. Requests will be
considered on a case-by-case basis and an exemption is at the
discretion of the Board. The full Plan is available for review on the
About the Company
Kingsway is a holding company functioning as a merchant bank with a
focus on long-term value-creation. The Company owns or controls stakes
in several insurance industry assets and utilizes its subsidiaries,
1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting
as an advisor, an investor and a financier. The common shares of
Kingsway are listed on the Toronto Stock Exchange and the New YorkStock Exchange under the trading symbol "KFS."
Additional information about Kingsway, including a copy of its Quarterly
Report on Form 10-Q for the quarter ended March 31, 2012, can be
accessed on the Canadian Securities Administrators' website at www.sedar.com, on the EDGAR section of the U.S. Securities and Exchange Commission's
website at www.sec.gov or through the Company's website at www.kingsway-financial.com.
SOURCE Kingsway Financial Services Inc.