Specialty insurer Kingsway Financial Services Inc. announced Tuesday that it has agreed to issue 6.1 million common shares from treasury on a bought deal basis to a syndicate of underwriters led by Scotia Capital Inc.

The shares will be publicly offered in Canada only at a price of $16.70 per share.

In addition, the underwriters have been granted an underwriters’ option for up to an additional 610,000 Shares to be issued from treasury.

In a news release, Kingsway said it will use the net proceeds of the offering for general corporate purposes. The offering is scheduled to close on or about July 3.