Fundamental Global Plans Second Closing in Reinsurance Divestiture

Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potentialAn announcement from Fundamental Global ( (FGNX) ) is now available. On January 2, 2025, FG Nexus Inc. completed the first closing of a previously disclosed transaction in which its subsidiary FG Reinsurance Holdings, LLC sold 100% of the equity of its FG Reinsurance Division—FG Reinsurance Ltd. and FG Solutions Ltd.—to Devondale Holdings, LLC, the assignee of original buyer Thomas Heise, in exchange for the release of $3.3 million in collateral related to certain reinsurance contracts and 40% of the Class A voting units of Devondale; as part of the deal, FG Reinsurance Holdings agreed to leave $1.25 million in cash in FG Re against a promissory note bearing 6% interest and maturing on June 30, 2027. A second closing is anticipated in January 2026, under which Saltire Capital Ltd. is expected to advance $1.0 million to Devondale to fund Devondale’s $1.0 million cash payment to FG Reinsurance Holdings in return for its own promissory note and 40% of Devondale’s Class A voting units, a structure that further reshapes FG Nexus’s exposure to the reinsurance business while introducing new financing and ownership layers around the divested division, although there is no assurance the second closing will occur. The most recent analyst rating on (FGNX) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Fundamental Global stock, see the FGNX Stock Forecast page. Spark’s Take on FGNX Stock According to Spark, TipRanks’ AI Analyst, FGNX is a Neutral. The score is held down primarily by weak financial performance (ongoing losses and negative operating cash flow) and bearish technicals (trading below key moving averages with negative MACD). Corporate actions provide some support via buybacks and strategic initiatives, but valuation is difficult to assess meaningfully with a negative P/E and no dividend data. To see Spark’s full report on FGNX stock, click here. More about Fundamental Global FG Nexus Inc., through its wholly owned subsidiary FG Reinsurance Holdings, LLC, has operated a reinsurance division comprising FG Reinsurance Ltd., a Cayman Islands reinsurer, and FG Solutions Ltd., a Bermuda-based service company, focused on providing reinsurance solutions and related services in international insurance markets. Average Trading Volume: 1,119,254 Technical Sentiment Signal: Sell Current Market Cap: $126.6M