TORONTO, June 22, 2018 (GLOBE NEWSWIRE) — Crosswinds Holdings Inc. (“Crosswinds” or the “Company”) (TSX:CWI) today announced an update on its previously disclosed assessment of strategic alternatives.
As the majority of the Company’s assets are now in cash, the Company’s Board of Directors (the “Board”) has been reviewing available investment opportunities against other strategic alternatives including, without limitation, a return of capital or other monetization event.
The Board has unanimously resolved, having regard to the Company’s available resources and opportunities, that it is in the best interests of the Company to distribute all of its available capital (less a reasonable reserve for liabilities and contingencies) to shareholders and dissolve the Company (the “Monetization Event”). The Company will continue to consider alternative opportunities that may become available as the process continues.
The Company intends to hold a special shareholder meeting in the third quarter to seek approval for the Monetization Event. There can be no assurance that shareholder approval will be received.
The Company also announced that its wholly-owned subsidiary, Crosswinds Re, reviewed available reinsurance opportunities for the 2018 wind season and determined that those opportunities presented to date did not meet its risk-return criteria. As a result, Crosswinds Re has not written any reinsurance business. If the Monetization Event is approved, Crosswinds Re would also be dissolved.
Crosswinds Holdings Inc.
Crosswinds is a publicly traded private equity firm and asset manager that has been targeting strategic and opportunistic investments in the financial services sector with a particular focus on the insurance industry.
Caution Regarding Forward-Looking Information
This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors in the Company’s most recent Annual Information Form, in the Management’s Discussion and Analysis for the year ended December 31, 2017 and in our other filings with Canadian securities regulators. Additional important factors that could cause actual results to differ materially from expectations include, among other things, receipt of shareholder approval, timing and ability to maintain continued listing on the TSX, outcome of assessment of any new alternatives available to the Company, general economic and market factors, tax related matters, loss of personnel, reliance on key personnel, the ability of the Company to execute its strategies from time to time; the receipt of any regulatory approvals or consents required from time to time.