Press Release:
Press Release
News Article March 2005
OVERLAND PARK, Kan., March 2 /PRNewswire-FirstCall/ -- Brooke Corporation (AMEX:BXX) announced today that it has sold all of its holdings of First American Capital Corporation ("FACC") stock to FACC in a privately negotiated transaction. FACC is the holding company of First Life America Corporation, a life insurance and annuity company headquartered in Topeka, Kansas.
"Instead of holding the FACC stock or increasing our investment, our Board decided to sell the stock at this time at the approximate cost of acquisition in order to invest the proceeds in our business and focus all of our efforts on the growth of Brooke Corporation," said Robert D. Orr, Brooke's Chairman and Chief Executive Officer.
Orr announced that the sale of 450,500 shares of FACC common stock that closed today involved a sale price of $770,355 in cash ($1.71 per share), along with warrants to purchase up to 150,000 shares of FACC common stock at prices ranging from $1.71 per share to $5.00 per share. Brooke Credit Corporation, the finance subsidiary of Brooke Corporation, financed $570,355 of FACC's cash purchase and intends to sell the loan to an unaffiliated investor. The warrants are exercisable in 2012 or immediately prior to any earlier change of control involving FACC, are subject to certain covenants and conditions, and expire no later than 2015. Brooke acquired the FACC stock in November 2003 in private transactions and owned approximately 9.62% of the outstanding FACC common stock at that time.
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