Key Insurance Company shareholders have given the green light to the financially strapped company’s planned rights issue to raise much-needed capital.

In the last 18 months, Key Insurance finances have gone into the red with some reprieve in the last quarter, where strategic and operational changes implemented by the new management resulted in a significant reduction in net losses. The losses for the second quarter were cut from $144.5 million in 2019 to $25.4 million in June 2020.

At its annual general meeting (AGM) last week, shareholders approved two resolutions: the proposed rights issue and increasing the company’s share capital. The rights issue will provide a much-needed lifeline for the company, which was taken over by GraceKennedy Limited (GK) in March this year.

The rights issue will be renounceable, meaning that Key’s shareholders can choose to sell their rights to other existing shareholders.

http://www.jamaicaobserver.com/business-observer/way-cleared-for-key-insurance-rights-issue_206312