Oxbridge Re Announces Launch of Tokenized Real-World Asset Offering EpilsonCat Re
March 27 2024 - 9:15AM
Oxbridge Re Holdings Limited
(Nasdaq: OXBR),
(the “Company”), and its subsidiaries which are engaged in the
business of tokenized Real-World Assets (“RWAs”), initially in the
form of Tokenized Reinsurance Securities, and reinsurance business
solutions to property and casualty insurers, announced the launch
of its offering of this year’s Participation Shares represented by
digital tokens to be issued under a 3-year Participation Share
Investment Contract (the “PSIC”). The offering which is the second
year of the Cat Re series, is being conducted by our indirectly
wholly owned subsidiary SurancePlus Inc. (“SurancePlus”) will issue
between 500,000 to 1,000,000 Participation Shares, represented by
digital tokens labelled “EpsilonCat Re”. The Participation Shares
will be offered at an initial price of $10 per Participation Share.
The Participation Shares are not shares in SurancePlus and shall
have no preemptive right or conversion rights. The Participation
Shares solely confer contractual rights against SurancePlus as
contained in the PSIC.
The net proceeds from the offer and sale of the
Participation Shares will be used by SurancePlus to purchase one or
more participating notes of Oxbridge Re NS, an affiliated Cayman
Islands licensed reinsurance entity, and the proceeds from the sale
of such participating notes will be invested in collateralized
reinsurance contracts to be underwritten by Oxbridge Re NS. In a
loss free year the holders of the Participation Shares will be
entitled to proceeds from the payment of the participating notes in
the amount of a preferred return equal to the initial Participation
Share price, plus 20%, and then 80% of any proceeds in excess of
the amount necessary to pay the preferred return.
The EpsilonCat Re tokens are being offered to
accredited investors in the United States by SurancePlus under Rule
506(c) of SEC Regulation D and to non-US investors pursuant to
Regulation S of the US Securities Act 1933, as amended. Assuming no
casualty losses to properties reinsured by Oxbridge Re’s
reinsurance subsidiaries, EpsilonCat Re token investors are
expected to receive a targeted annualized return of 42%. Investors
in last year’s DeltaCat Re token are poised to realize returns
exceeding 45%, surpassing our initial expectations of 42%. This
achievement is particularly noteworthy, given the challenges posed
by Hurricane Idalia, which made landfall in Florida as a Category 3
hurricane in 2023.
“We are particularly enthusiastic about the
prospects of our venture into RWA tokenization and the direction it
sets for our company. Through strategic initiatives undertaken this
year, we are positioning ourselves for substantial growth within
our SurancePlus subsidiary as a premier RWA Web3-focused entity,”
commented Oxbridge Re Holdings President and Chief Executive
Officer Jay Madhu. “Further reinforcing our strategic vision,
Blackrock has announced its intention to tokenize $10 trillion of
its assets. Concurrently, we witness the steady adoption of
blockchain technology across traditional financial institutions and
asset classes, including fiat currencies, equities, government
bonds, and real estate. As pioneers in the RWA market, we are
energized by the transformative potential of our repositioning and
the expansion into new business lines, which we believe will create
significant value for our shareholders.”
Disclaimer: This press
release does not constitute an offer to sell nor a solicitation of
an offer to buy the Participation Shares (the “Securities”) and the
EpsilonCat Re tokens. The Securities are not required to be, and
have not been, registered under the United States Securities Act of
1933, as amended, in reliance on the exemptions provided by
Regulation S and Regulation D (SEC Rule 506(c)) thereunder. Offers
and sales of the Securities are made only by, and pursuant to, the
terms set forth in the Confidential Private Placement Memorandum
relating to the Securities. The offering of the Securities is not
being made to persons in any jurisdiction in which the making or
acceptance thereof would not be in compliance with the securities,
blue sky, or other laws of such jurisdiction.
About Oxbridge Re Holdings
Limited
Oxbridge Re Holdings Limited
(www.OxbridgeRe.com) (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is
headquartered in the Cayman Islands. The company offers tokenized
Real-World Assets (“RWAs”) as Tokenized Reinsurance Securities and
reinsurance business solutions to property and casualty insurers,
through its wholly owned subsidiaries Oxbridge Reinsurance Limited,
Oxbridge Re NS, and SurancePlus Inc.
Insurance businesses in the Gulf Coast region of
the United States purchase property and casualty reinsurance
through our licensed reinsurers Oxbridge Reinsurance Limited and
Oxbridge Re NS.
Our new Web3-focused subsidiary, SurancePlus
Inc. has developed the first “on-chain” reinsurance RWA of its kind
to be sponsored by a subsidiary of a publicly traded company. By
digitizing interests in reinsurance contracts as on-chain RWAs,
SurancePlus Inc. has democratized the availability of reinsurance
as an alternative investment to both U.S. and non-U.S.
investors.
About SurancePlus Inc.
SurancePlus Inc. (www.SurancePlus.com) is an
indirect wholly owned subsidiary of Oxbridge Re Holdings Limited,
incorporated in the British Virgin Islands. SurancePlus was
organized to serve as a special-purpose vehicle to make tokenized
side-car investments in reinsurance contracts entered into by
Oxbridge Re’s licensed reinsurance subsidiaries.
Company Contact:Oxbridge Re Holdings LimitedJay Madhu, CEO+1
345-749-7570jmadhu@oxbridgere.com
Forward-Looking Statements
This press release may contain forward-looking
statements made pursuant to the Private Securities Litigation
Reform Act of 1995. Words such as “anticipate,” “estimate,”
“expect,” “intend,” “plan,” “project” and other similar words and
expressions are intended to signify forward-looking statements.
Forward-looking statements are not guarantees of future results and
conditions but rather are subject to various risks and
uncertainties. A detailed discussion of risks and uncertainties
that could cause actual results and events to differ materially
from such forward-looking statements is included in the section
entitled “Risk Factors” contained in our Form 10-K filed with the
Securities and Exchange Commission (“SEC”) on 26th March 2024. The
occurrence of any of these risks and uncertainties could have a
material adverse effect on the Company’s business, financial
condition and results of operations. Any forward-looking statements
made in this press release speak only as of the date of this press
release and, except as required by law, the Company undertakes no
obligation to update any forward-looking statement contained in
this press release, even if the Company’s expectations or any
related events, conditions or circumstances change.
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