Israeli digital insurance company WeSure Global Tech (TASE: WESR) has reported that it has signed an investment and collaboration agreement with US insurance company AmTrust Financial Services Inc. Under the terms of the agreement, the US company will invest NIS 35.6 million in WeSure shares, as a loan convertible to shares.
The date for repayment of the loan has been fixed at up to 10 years and according to the letter, the conversion to shares could be undertaken in various circumstances, including automatic conversion, in the event that the WeSure share price will be at least NIS 6.30 (the price at which the deal was closed) for 14 consecutive trading days.
As part of the investment agreement, the two sides will invest $2 million each in WeSure Digital, which is already registered to operate as an MGA in nine US states. In exchange for the investment, AmTrust will receive a 30% stake in WeSure Digital.
AmTrust Group is a multinational insurance holdings company headquartered in New York. The Group specializes in property insurance and business liability including employees’ compensation, business owners’ policies, and product and services liability.
Published by Globes, Israel business news – en.globes.co.il – on August 11 2022.
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