Kingsway Financial Services Inc. has entered into an agreement with a syndicate of underwriters for an offering worth just under $124 million.

The syndicate includes HSBC Securities (Canada) Inc., CIBC World Markets Inc., Fox-Pitt, Kelton, Inc., RBC Dominion Securities Inc., Scotia Capital Inc., Advest, Inc., Cochran, Caronia Securities LLC, National Bank Financial Inc. and Raymond James & Associates Inc.

The firm will offer 7,500,000 common shares at $16.50 per share in Canada and US$10.49 per share in the United States, for gross proceeds of approximately $123,750,000.

Closing of this transaction is expected to occur on or about December 19. The net proceeds from this offering will be used to augment the capital of the company’s subsidiaries and for general corporate purposes. Kingsway has also granted the underwriters an option to buy up to an additional 1,125,000 shares at the offering price until January 10, 2002.