Royalty Capital Announces Acquisition
Orland Park, Illinois, March ___, 2017 – Royalty Capital Corporation (“Royalty”), a development-stage insurance holding company, today announced that the merger (the “Merger”) of Inspire Capital Corp., a Missouri-based insurance holding company (“Inspire”) with and into Royalty became effective on February 28, 2017 (the “Effective Date”). Inspire is the owner of Capital Reserve Life Insurance Company, a Jefferson City, Missouri-based life insurance company (“CRLIC”). The acquisition of Inspire and CRLIC marks the commencement of Royalty’s insurance operations.
[Pursuant to the terms of the Merger, each outstanding share of common stock of Inspire, other than shares as to which appraisal rights may have been perfected, that was held immediately prior to the Effective Date has been cancelled and exchanged for one share of common stock of Royalty. Royalty had previously completed a stock split effective February 13, 2017, such that the per share book value of the common stocks of each of Royalty and Inspire was equal immediately prior to the Merger, facilitating an even exchange of shares in the Merger.]
All ten members of Royalty’s Board of Directors continued on the Board following the Merger and five members of Inspire’s Board of Directors joined the Royalty’s Board. In addition, Ted Lung, Co-Chairman of Inspire, joined the Board as Vice Chairman. Ted is a resident of Camp Point, Illinois and has vast experience in the insurance business.
John C. Todd, President and Chief Executive Officer of Royalty, commented, “We are pleased that Royalty has completed its acquisition of Inspire Capital Corp. and Capital Reserve Life Insurance Company. Through this transaction, Royalty has taken an important step towards achieving the objectives of its business plan.
About Royalty Capital Corporation
Royalty Capital Corporation is a privately-held insurance holding company that was formed for the primary purpose of becoming an insurance and financial services holding company. The Company’s officers have a combined 150 years of experience in the sale and administration of life insurance products and securities.