CORRECTING and REPLACING: $50 Million Private Placement Completed for Strategy.TORONTO -- Please replace the release with the following corrected version due to multiple revisions. The corrected release reads: $50 MILLION PRIVATE PLACEMENT COMPLETED FOR STRATEGY Strategy International Insurance Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :SGYI), a provider of specialty lines of insurance, reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and structured risk underwriting focusing on credit risk and credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing , announced today the completion of a private placement of 5,000 units at $10,000 per unit in its subsidiary, Strategy Real Estate Investments Ltd., for gross proceeds of $50,000,000. Under the terms of the unit offering, each unit is comprised of one share of Series "A" Redeemable Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of Strategy Real Estate Investments Ltd., one share of Series "B" Preferred Stock of Strategy Real Estate Investments Ltd., and a Warrant to purchase shares of common stock of Strategy International Insurance Group, Inc. The Series "A" Preferred Stock will pay a dividend at a rate of 10% per annum Per annum Yearly. , payable quarterly, maturing in three years. Each share of Series "B" Preferred Stock will entitle its holder to receive a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. share of the gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. from specific investments made by Strategy Real Estate Investments Ltd. The Warrants will be convertible at the option of the holder for a period of three years into Strategy International Insurance Group, Inc.'s common stock at $1.6671 per share upon tender of the Series "A" Preferred Stock. The exercise price represents a 25% premium over the arithmetic average of volume weighted average price for the common stock of Strategy International Insurance Group, Inc. for the 10 trading days prior to the date of closing. McMahan Securities Co. L.P. served as the sole placement agent in connection with this transaction. "This will enable Strategy to close on an additional amount of approximately $100 Million in orders over the next 12 months and facilitate the authorization of facilities that will assist Strategy's presence in the specialty insurance industry. We believe that we will surpass our target income in 2005," said Stephen Stonhill, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Strategy International Insurance Group, Inc. About Strategy International Insurance Group, Inc. Strategy Insurance Limited ("Strategy"), a Barbados-formed and licensed provider of specialty lines of insurance, reinsurance and structured risk underwriting, focusing on credit risk and credit enhancement, is a wholly-owned subsidiary of Strategy Holding Company Limited, a Barbados company which is itself a wholly-owned subsidiary of Strategy International Insurance Group, Inc. (OTCBB: SGYI). Strategy conducts its insurance and reinsurance operations principally through its subsidiary incorporated in Barbados, West Indies West Indies, archipelago, between North and South America, curving c.2,500 mi (4,020 km) from Florida to the coast of Venezuela and separating the Caribbean Sea and the Gulf of Mexico from the Atlantic Ocean. . Strategy has offices in Barbados, London and Toronto. Strategy currently has a balance sheet with more that $100 million of net capital which gives the company the wherewithal to write insurance that would result in over $200 million of premium income for Strategy. Forward-Looking Statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "Forward Looking Statements" for purposes of safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward Looking Statements may be identified by words including "anticipate", "await", envision", "foresee", "aim at", "believe", "intends", estimates" including without limitation, those relating to the Company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the Forward Looking Statements. Readers are directed to the Company's filings with the U.S. Securities and Exchange Commission for additional information and a presentation of the risks and uncertainties that may affect the Company's business and results of operations. |
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