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Note 17 - Redeemable Class A Preferred Stock

3 Months Ended

Mar. 31, 2023

NOTE 17 Redeemable Class A Preferred Stock

On March 1, 2023, the Company notified the holders of its outstanding Class A Preferred Shares ("Preferred Shares") of its intention to redeem all the outstanding Preferred Shares on March 15, 2023 (the “Anticipated Redemption Date”). The Preferred Shares are convertible into shares of the Company’s common stock at the discretion of the holders. Prior to the Anticipated Redemption Date, the Company had received notice from all of the holders of the Preferred Shares of their intention to convert their shares.

There were 30,000 and 149,733 shares of Preferred Shares outstanding at March 31, 2023 and December 31, 2022, respectively. Each Preferred Share is convertible into 6.25 common shares at a conversion price of $4.00 per common share any time at the option of the holder prior to the redemption date. During the three months ended March 31, 2023, 119,733 Preferred Shares were converted into 748,331 common shares, at the conversion price of $4.00 per common share, or $3.0 million, at the option of the holders. As of March 31, 2023, the maximum number of common shares issuable upon conversion of the Preferred Shares is 187,500 common shares. The Company expects the remaining Preferred Shares to convert in the second quarter of 2023.

KINGSWAY FINANCIAL SERVICES INC.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2023