United Insurance Holdings Corp. Announces Completion of Share Conversion, Share Repurchase Program and Exchange Offer

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--United Insurance Holding Corp. (OTCBB: FMGQ; FMGQW; FMGQU) (“United” or the “Company”), an underwriter of homeowners and selected small business insurance in the State of Florida, announced today that the Company has settled transactions whereby the Company and certain of its affiliates completed privately negotiated purchases with a limited number of the Company’s stockholders to purchase 1,980,671 shares of the Company’s outstanding common stock for an aggregate purchase price of $15,740,351. Such stockholders also agreed to vote in favor of the merger of United Insurance Holdings LC with a subsidiary of the Company and thereby complete the business combination. United also announced that, pursuant to conversion rights granted to stockholders who owned common stock issued in the Company’s initial public offering (“IPO”), 1,267,863 shares were converted. United used funds totaling $10,039,861 held in the trust account established in connection with its IPO to consummate the conversion. In addition, United consummated its previously announced exchange offer made available to certain institutional holders of its common stock whereby such stockholders exchanged 869,565 shares of United’s common stock for the Company’s notes in the aggregate principal amount of $7,526,882. Following the consummation of these transactions and the business combination, United had 10,548,932 shares of common stock and 7,077,375 warrants to purchase common stock (each with a strike price of $6.00) issued and outstanding.

About United Insurance Holdings Corp.

Founded in 1999, United Insurance Holdings Corp. underwrites homeowners insurance and selected small business insurance in the state of Florida. From its headquarters in St. Petersburg, United’s team of dedicated employees manages a completely integrated insurance company, including sales, underwriting, policyholder service and claims. The Company distributes its homeowners, dwelling fire, flood and garage liability products through over 200 agency groups and conducts business through three wholly-owned subsidiaries. Homeowners insurance constitutes the majority of United’s premiums and policies.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about United. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of United or United’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The information set forth herein should be read in light of such risks. United assumes no obligation to update the information contained in this press release.

United Insurance Holdings Corp.
Nick Griffin, 727-895-7737
Chief Financial Officer
or
Investor Relations:
The Equity Group Inc.
Adam Prior, 212-836-9606
Vice President
aprior@equityny.com