Definity Financial Corporation files preliminary prospectus for initial public offering
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WATERLOO, ON, August 27, 2021 / CNW / – Definity Financial Corporation (“Definity”) and Economical Mutual Insurance Company (“Economical Insurance”) announced today that Definity has filed with the securities regulatory authorities of each of the provinces and territories in Canada, and has obtained a visa for a PREP Base Preliminary Prospectus (the “Preliminary Prospectus”) for an Initial Public Offering (the “Offer”) of Definity Common Shares (the “Common Shares”). The number and price of common shares for sale has not yet been determined.
The placement is being made in connection with the conversion of Economical Insurance from a mutual insurance company to a share capital company in accordance with the Insurance Companies Act (Canada) and its regulations, a process known as “demutualization” (“demutualization”). Definity, a newly created entity incorporated under the Insurance Companies Act (Canada), will be the parent company of Assurance Economical after completion of the demutualization.
BMO Capital Markets, RBC Capital Markets and Barclays are acting as global coordinators and joint bookkeepers, and Scotia Capital and TD Securities Inc. are acting as joint bookkeepers for the offering.
The Preliminary Prospectus contains important information relating to the Offer and has not yet become final for the purposes of a distribution of securities to the public. No securities regulatory authority has approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale or acceptance of an offer to buy such securities in any province. or a territory of Canada before obtaining a visa for the final prospectus or other authorization from the securities authorities of each of the provinces and territories. The preliminary prospectus will be available under Definity’s profile on SEDAR at www.sedar.com.
The securities covered by the Offer have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”), or the securities laws of any State of United States and may not be offered, sold or delivered, directly or indirectly, in United States, except as an exemption from the registration requirements of the US Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities in any jurisdiction in which the offer or sale is not permitted.
About Economical Insurance
Economical Insurance is a general property and casualty insurer Canada which, along with its subsidiaries, has over a million policies in force across the country. Insurance Economical and its subsidiaries offer personal and commercial insurance products and distribute products primarily on an intermediated basis, through brokers, as well as directly to clients.
Definity, a newly created entity incorporated under the Insurance Companies Act (Canada), will be the parent company of Economical Insurance, Family Insurance Solutions Inc., Petline Insurance Company and Sonnet Insurance Company, following the demutualization of Economical Insurance.
This press release may contain forward-looking information within the meaning of applicable securities laws, which reflects Definity’s and Economical Insurance’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the control of Definity and Economical Insurance, respectively. These risks and uncertainties include, but are not limited to, the failure to complete the demutualization and the offering and the factors described under “Risk Factors” in the preliminary prospectus. Actual results could differ materially from those projected in this document. Neither Definity nor Economical Insurance undertakes to update this forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws.
SOURCE Definity Financial Corporation
For further information: For policyholder inquiries regarding demutualization, please contact: Join in Our Future, (T) 1-866-302-6046 (toll free), [email protected]; Media inquiries: Sarah Attwells, Director, Public Relations and Corporate Story (C) 416-986-9360, [email protected]