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Oxbridge Launches Offering of Tokenized Reinsurance Security: DeltaCat Re
GRAND CAYMAN, Cayman Islands, March 27, 2023 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (Nasdaq: OXBR), a provider of reinsurance solutions to property
About this update from Oxbridge Re Holdings Limited
[{"type":"text","content":"GRAND CAYMAN, Cayman Islands, March 27, 2023 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (Nasdaq: OXBR), a provider of reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States, announced the launch of its offering of a tokenized reinsurance security, DeltaCat Re, by its new wholly-owned subsidiary SurancePlus Inc. (“SurancePlus”). The DeltaCat Re token will indirectly represent fractionalized interests in reinsurance contracts, with each token representing one preferred share of SurancePlus. These reinsurance contracts will be underwritten by Oxbridge Re’s reinsurance subsidiary, Oxbridge Re NS Limited, and the proceeds from the sale of the tokens and underlying preferred shares will be used to purchase one or more participating notes of Oxbridge Re NS, with such notes representing an interest in collateralized reinsurance contracts underwritten by Oxbridge Re NS. The DeltaCat Re Tokens are being offered to accredited investors in the United States (“US”) by SurancePlus under Rule 506(c) of SEC Regulation D and to non-US investors pursuant to Regulation S of the US Securities Act 1933, as amended. Token holders will receive the right to a return on the investment from the performance of the underlying reinsurance contracts of Oxbridge Re NS. Assuming no casualty losses to properties reinsured by Oxbridge Re’s reinsurance subsidiaries, DeltaCat Re token investors are expected to receive a return on the original purchase price of the tokens of up to 196% after 3 years. Investor capital will be co-invested alongside ceding insurers' premiums to fully collateralize underwritten reinsurance contracts. SurancePlus has engaged Ogier BVI as its BVI counsel and Bull Blockchain Law LLP, as its United States Securities and Exchange Commission (SEC) counsel. Both firms were selected because each holds digital securities and tokenization expertise. Details of the offering may be found at www.SurancePlus.com/invest. “Tokenization of interests in reinsurance contracts is a digital representation of a real-world tradable asset, and we believe that our SurancePlus subsidiary is well-positioned to offer this unique opportunity to investors”, commented Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu. “Democratizing reinsurance through tokenization allows investors to participat...