Brooke Sells Stock of Topeka Company

Overland Park, Kan.-based agency franchisor Brooke Corp. announced that it has sold all of its holdings of First American Capital Corp. to the company in a privately negotiated transaction. First American is the holding company of First Life America Corp., a life insurance and annuity company headquartered in Topeka, Kan.

Orr announced that the sale of 450,500 shares of First American common stock that closed today involved a sale price of $770,355 in cash ($1.71 per share), along with warrants to purchase up to 150,000 shares of First American common stock at prices ranging from $1.71 per share to $5.00 per share.

Brooke Credit Corp., the finance subsidiary of Brooke Corporation, financed $570,355 of First American cash purchase and intends to sell the loan to an unaffiliated investor. The warrants are exercisable in 2012 or immediately prior to any earlier change of control involving FACC, are subject to certain covenants and conditions, and expire no later than 2015. Brooke acquired the First American stock in November 2003 in private transactions and owned approximately 9.62 percent of the outstanding common stock at that time.

Topics Mergers & Acquisitions