SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report (Date of earliest event reportable):
April 29, 1996
Investors Insurance Group, Inc.
(Exact name of registrant a specified in its charter)
Florida 1-8069 13-2574130
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7200 West Camino Real
Boca Raton, Florida 33433
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (407)-391-5043
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Item 5: Other Events
On April 29, 1995, Investors Insurance Group, Inc. signed a definitive
agreement with AAM Capital Partners, L. P. ("AAM") for the sale of up to
$7,000,000 of convertible voting preferred stock (70,000 shares). This
infusion of capital will be used to recapitalize IIG's insurance subsidiary,
Investors Insurance Corporation. The insurance company will then be able to
retain a larger portion of its profitable annuity business that is currently
being ceded to a reinsurer. AAM has in depth expertise of insurance
operations and plans to help IIG utilize its marketing expertise in a number
of new and expanding markets. AAM is an equity investment fund which
participates in investments in the insurance industry.
Under the terms of the agreement, which is scheduled to close on June 30,
1996, IIG's board of directors will expand from four to seven members and the
owners of the preferred shares will elect three new directors. Each preferred
share will be convertible at any time into 100 shares of common stock or,
after December 31, 2001, redeemable for $100 per share, plus accrued
dividends. In conjunction with this agreement, IIG will exchange 250,000
restricted shares of its common stock for all of IIG's currently outstanding
warrants to purchase 1,000,000 shares of common stock. These warrants are
currently held by Chester County Fund, Inc., IIG's largest shareholder.
In addition to the normal and customary contingencies, final closing of the
agreement is subject to regulatory approval and the full subscription of AAM's
coinvestor group.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INVESTORS INSURANCE GROUP, INC.
(Registrant)
May 3, 1996 By /s/ Melvin C. Parker
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Melvin C. Parker
President
