Heritage Insurance Holdings has recently revealed its plans to conduct an underwritten public offering of 3.7 million shares at a price of $6.75 each. As a result, the company’s shares experienced a significant decrease of 14% and are currently trading at $6.35. Despite this setback, Heritage’s stock has witnessed impressive growth of 255% throughout the year.
Primary Offering for Future Growth
Headquartered in Tampa, Fla., Heritage has initiated a primary offering of shares with the purpose of utilizing the funds for general corporate and operations purposes, as well as supporting the company’s growth strategies. The offering is expected to conclude on Tuesday and is estimated to generate approximately $25 million in gross proceeds.
Private Placement by Key Figures
On Friday, Heritage announced that Chief Executive Ernie Garateix, Director Paul Whiting, and Raymond Hyer, who currently holds around 13.5% of the company’s outstanding stock, have collectively agreed to purchase 222,222 shares at the aforementioned price through a private placement.
Key Players in the Offering
JonesTrading Institutional Services LLC has been appointed as the book-running manager for the underwritten public offering, while Stonybrook Capital and its affiliates are serving as the financial advisor.
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