Porch Group Buys 2.1M Shares for $15M
Porch Group announced that the Porch Reciprocal Exchange sold approximately 2.1M shares of Porch common stock to Porch for an aggregate purchase price of $15M in cash. The Transaction is designed to convert a portion of the Reciprocal's Porch common stock holdings into cash, which increases the Reciprocal's regulatory capital given a large portion of the value of the Reciprocal's Porch shares is instead counted as non-admitted assets in statutory filings. The Reciprocal will continue to hold approximately 16.2M Porch shares, providing continued upside potential should the share price appreciate. For the quarter ended March 31, statutory surplus at the Reciprocal was approximately $165M, which supports capacity for more than $800M in Reciprocal Written Premiums. Growth in statutory surplus at the Reciprocal has continued to be better than expectations since the end of Q1 independent of this transaction. In March, the Company exhausted its Board authorized open market repurchase program and repurchased 0.3M common shares for $2.5M, which represented the maximum amount permitted under the Company's 2028 convertible notes indenture. This Transaction is separate from that open market repurchase authorization and is not an open market repurchase. The parties entered into the securities purchase agreement June 10, following receipt of required regulatory approvals from the Texas Department of Insurance and the Cayman Islands Monetary Authority. The purchase price reflects $7.17 per share, which was the Nasdaq closing price on March 31, the date the parties received the requisite corporate approvals for the Transaction, subject to receipt of regulatory approvals.
