Kingsway Financial’s activist battle with Kobex Capital

(KXM is an illiquid Canadian stock with a market cap of $26M.)

Kingsway Financial’s plan:

  1. Buy back shares because this company trades below NAV- roughly seventy cents a share in NAV trading at 50-55 cents currently.
  2. Cut director’s salaries to $10k/person.
  3. Not issue options below intrinsic value.  On August 19, 2015 Kobex issued options at $0.55/share.

The incumbents’ plan:

  1. Waste shareholder money entrenching themselves against Kingsway Financial.

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