NEW YORK, Oct. 09, 2015 (GLOBE NEWSWIRE) — HC2 Holdings, Inc. (“HC2” or the “Company”) (NYSE MKT:HCHC) today announced that one of its shareholders, HGI Funding, LLC (“HGI”), a subsidiary of HRG Group, Inc., had entered into a definitive stock purchase agreement for the sale by HGI to certain purchasers of 4,678,395 shares of the Company common stock to certain purchasers named therein, for an aggregate purchase price of $35,087,962.50, or $7.50 per share.
HC2 will not receive any proceeds from the sale of the shares sold by HGI. The purchasers include Philip A. Falcone, the Chairman, President and Chief Executive Officer of the Company, who is purchasing 540,000 shares. As a result of the private offering, HGI will no longer own any shares of the Company’s common stock. HC2 has agreed to provide the purchasers with certain registration rights following the closing of the private offering. The closing of the private offering is subject to the satisfaction of customary conditions and is anticipated to occur on or about October 14, 2015.
The shares are being sold in a private offering pursuant to Section 4(a)(1) of the Securities Act of 1933, as amended (the “Securities Act”). The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell, or a solicitation of an offer to purchase, the shares in any jurisdiction in which such offer or solicitation would be unlawful.
Cautionary Statement Concerning Forward-Looking Statements
This release contains certain forward-looking statements regarding the agreed-upon sale of HC2’s common shares to investors in a private offering. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including the risk that the acquisition of the shares may not be consummated, and typically can be identified by the use of words such as “will,” “expect,” “estimate,” “anticipate,” “forecast,” “plan,” “believe,” and similar terms. Although HC2 believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of HC2’s control that may cause its business, industry, strategy, financing activities or actual results to differ materially. HC2 undertakes no obligation to update or revise any of the forward looking statements contained herein, whether as a result of new information, future events or otherwise.
HC2 Holdings, Inc. is a publicly traded (NYSE MKT:HCHC), a diversified holding company, which seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. HC2 has a diverse array of operating subsidiaries across six reportable segments, including Manufacturing, Marine Services, Utilities, Telecommunications, Life Sciences and Other. Currently, HC2’s largest operating subsidiaries are Schuff International, Inc., a leading structural steel fabricator and erector in the United States, and Global Marine Systems Limited, a leading provider of engineering and underwater services on submarine cables. Founded in 1994, HC2 is headquartered in Herndon, Virginia.
CONTACT: For information on HC2 Holdings, Inc., please contact: HC2 ir@HC2.com