IGI to regulate monetary statements
International General Insurance Holdings (IGI) is reorganizing its financial statements in response to a SEC statement regarding the accounting for warrants issued by SPACs.
According to the commercial (re) insurer, the consolidated financial statements of IGI as of December 31, 2020 as well as the previously published quarterly figures for 2020 and 2021 are to be changed.
“IGI has 12.75 million public warrants and 4.5 million private warrants outstanding,” the company stated. “No warrants have been exercised or redeemed since they were originally issued.
“The effect of the adjustment on consolidated financial statements will be a decrease in net income of $ 4.4 million for total equity as of December 31, 2020 of $ 13.6 million as of December 31, 2020.”
It was determined that the warrants should have been recognized at fair value as liabilities and not as equity. To reflect the restatement, IGI intends to submit an amended annual report as soon as possible. However, it was emphasized that the restatement had no impact on liquidity, cash or cash equivalents, or cash flow from operating, investing and financing activities of IGI.
“IGI is one of several hundred US public companies that have re-engineered or revised their financial statements based on the SEC’s personnel statement on option accounting for SPACs,” said IGI chairman and chief executive officer Wasef Jabsheh.
“This adjustment has no impact on IGI’s financial strength. We do not assume that the adjustment will affect our previously communicated core operating income and core operating earnings per share. We remain confident about the positive momentum that IGI has achieved since becoming a public company in 2020. “