Kingsway Announces $15.7 Million Pipe to Accelerate Growth

KSX Guidance Increased From 2-3 Acquisitions Per Year To 3-5 Acquisitions Per Year

CHICAGO, IL / ACCESS Newswire / June 24, 2025 / (NYSE:KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company"), the only publicly-traded US company employing the Search Fund model to acquire and build great businesses, today announced the closing of a $15.7 million private placement ("PIPE") of 1,336,264 shares of its common stock at a price of $11.75 per share.

"It's time to play offense," said JT Fitzgerald, Kingsway's President and CEO. "Over the last handful of years, Kingsway has created a world-class Search Fund platform backed by purpose-built infrastructure, an outstanding Advisory Board, and a talented group of Operator CEO's. The results so far have been highly encouraging, and provide confidence it's the right time to accelerate investment into our public Search Fund strategy.

"Concurrent with today's announcement, Kingsway is raising its target range for the number of acquisitions the Company expects to complete each year via the Kingsway Search Xcelerator ("KSX") from 2-3 per year to 3-5 per year. This guidance upgrade reflects our conviction in the KSX model as well as the robust pipeline of opportunities clearly visible in front of us.

"Today marks an important inflection point for Kingsway," concluded Mr. Fitzgerald. "I am thrilled for our employees, our Operator CEO's, and our shareholders. We've laid the foundation, and we are now ready to accelerate growth. The momentum at Kingsway is palpable as we focus on Building Through Search."

The purchasers consisted of a limited number of high-quality, supportive, and long-term institutional investors. Funds received from the PIPE, in combination with operating cash flow and capital from other non-dilutive sources, will provide Kingsway with the financial resources to deliver on the Company's multi-year growth ambitions.

The PIPE was non-brokered. Cadwalader, Wickersham & Taft LLP acted as legal counsel to the Company on the transaction.

Important Information Regarding the PIPE Transaction

The common stock sold in the PIPE was issued in reliance on an exemption from registration under the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(a)(2) thereof. The common stock sold in the PIPE has not been registered under the Securities Act, or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions' securities laws. Kingsway has agreed to register the resale of the shares of common stock issued in the PIPE at a future date with the Securities and Exchange Commission (the "SEC").