Kingsway Financial Services Inc.

Kingsway Financial Services Inc.

November 13, 2015 13:17 ET

The Votes Are In and the Result is Clear: Change is Coming to Kobex Capital

- Overwhelming majority of shareholders have voted and made it clear Kingsway's nominees should lead Kobex Capital

- Kingsway asks the current Kobex directors to respect the will of shareholders and not spend further shareholder money to implement entrenchment tactics

- Shareholders should not change their vote in response to desperate, last ditch calls from Kobex

TORONTO, ONTARIO--(Marketwired - Nov. 13, 2015) - Kingsway Financial Services Inc. (TSX:KFS)(NYSE:KFS) is pleased to announce that the proxies are in and shareholders' calls for change at Kobex Capital Corp. (TSX VENTURE:KXM) have been answered.

"We'd like to thank the clear majority of Kobex shareholders who have rejected the current self-interested and conflicted board and voted in favour of Kingsway's independent and highly qualified nominees," said Larry Swets, President and Chief Executive Officer of Kingsway. "We are eager to see our plan for improvement at Kobex implemented, starting on Tuesday."

It is expected that immediately following the meeting on Tuesday, the new board of directors of Kobex will commence implementing a plan of action to ensure long-term value creation, including:

  • Establishing a liquidity option for Kobex shareholders for $0.65 per share.
  • In direct response to shareholders who suggested we keep some focus on mining, placing directors with mining and resource expertise on the board of directors.
  • Reducing Kobex's expenses.
  • Increasing shareholder communication and understanding of the Net Asset Value (NAV) of Kobex to facilitate better liquidity in the open market.
  • Finding and executing on investment opportunities by working with an established network and advisors to move expeditiously in proposing opportunities to put Kobex's capital to productive use.
  • Increasing the trading value of Kobex's shares.

"We look forward to seeing the changes you have asked for implemented and thank you for your overwhelming support," Swets added. "As you know, we have seen some questionable tactics by the current Kobex board. Now that they know change is coming, they may attempt to contact you to change your votes before the meeting. We thank shareholders for their continued confidence in our team . Shareholders have spoken and change is on its way starting on Tuesday."

If you have not yet voted your BLUE proxy, please do so. Your vote now will help prevent the current Board from implementing any further entrenchment tactics. We encourage shareholders to attend the meeting on Tuesday, November 17 in Toronto.

If you need help voting or have any questions, please call Kingsway's proxy solicitation agent Kingsdale Shareholder Services at 1-855-683-3113 (North American Toll Free Number) or 1-416-867-2272 (collect outside North America) or email at

Certain statements contained in this press release constitute forward-looking statements. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Kingsway, Kobex, and Kobex's current or future board or management, are intended to identify forward-looking statements. Such statements reflect Kingsway's current views and intentions with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include, but are not limited to, economic, business and regulatory factors, the implementation of specific initiatives proposed by Kingsway and/or the Kingsway nominees, and other factors that are not within the control of Kingsway. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, Kingsway does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and Kingsway undertakes no obligation to publicly update or revise forward-looking statements, other than as required by applicable law.

Contact Information