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PROVIDENT AMERICAN CORPORATION SELLS 387,500 NEWLY ISSUED CONVERTIBLE PREFERRED SHARES TO INVESTOR GROUP

 NORRISTOWN, Pa., April 5 /PRNewswire/ -- Provident American Corporation, (NASDAQ: PAMC) announced that on March 31, 1993, it sold 387,500 newly issued shares of cumulative convertible preferred stock at $4.00 per share to a group of investors represented by Oak Value Capital Management, a registered investment advisor. Prior to this acquisition Oak Value represented a group that owned 5.2 percent of the company's common shares.
 Each of the new preferred shares in convertible into one share of common stock after March 31, 1995 and pays a 7 percent annual dividend. The preferred shares are also subject to certain redemption and put rights.
 This capital, together with the $2 million recently raised from the sale of 500,000 shares of preferred stock to Alvin H. Clemens, chairman and CEO, will be used to increase the capital and surplus of Provident Indemnity to approximately $7 million which is in excess of the new risk based capital requirements. The higher capital and surplus base will allow Provident to continue expanding its pre-need marketing programs.
 Provident American is an insurance holding company selling specialized niche insurance products concentrating on pre-funded funeral planning.
 -0- 4/5/93
 /CONTACT: Anthony R. Verdi, chief financial officer of Provident American Corporation, 215-279-2500; or Melissa Wilmoth of Cameron Associates, 212-644-9560, for Provident American Corporation/
 (PAMC)


CO: Provident American Corporation ST: Pennsylvania IN: INS SU:

SH-LR -- NY047 -- 3125 04/05/93 15:04 EDT
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Publication:PR Newswire
Date:Apr 5, 1993
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