Strategy raises $700 million in capital

Strategy International Insurance Group, Inc. (OTCBB: SGYI) (“Strategy”) has announced that its subsidiary, Strategy Holding Company Limited, has finalized the transaction for the sale of $700 million of preferred stock of Strategy Holding Company to Grupo Lakas S.A., a Panamanian corporation, in exchange for a US$700-million convertible note (collateralized assets having an initial value of US$900 million).
Grupo Lakas is a Panamanian holding company with investments in mineral mining, portuary activities, fuels and power generation.
The increase in stockholders’ equity of Strategy Holding Company will be based upon the results of an independent valuation report, currently in progress, Strategy International announced in a press release.
Commenting on the closing, Strategy CEO Stephen Stonhill stated: “We are pleased the first step toward new capital infusion to Strategy has been completed. We are looking forward to being able to use our capital base to take advantage of our pipeline of insurance business in early 2006.”
Strategy International Insurance Group, Inc., a Texas-based corporation, is a publicly traded holding company for a group of financial service companies located throughout the world. Strategy Holding Company Limited, a wholly-owned subsidiary, is the parent company for a group of insurance related organizations whose operating subsidiaries include Strategy Insurance Limited of Barbados, Strategy Insurance (Canada) Limited and Strategy Underwriting Agency Limited.
Strategy Holding Company Limited owns all of the insurance operations, of which the key operating insurance company is Strategy Insurance Limited. Strategy Insurance Limited was incorporated in Barbados on Dec. 23, 2003, and was granted a license under the Barbados Exempt Insurance Act Mar. 25, 2004.