Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 319

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 319
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licable, we would have to seek to
register under the Investment Company Act as an investment company, which, under the Investment Company Act, would require an order from
the SEC. Our inability to obtain such an order could have a significant adverse impact on our business, as we might have to cease certain
operations or risk substantial penalties for violating the Investment Company Act.

Registered
investment companies are subject to extensive, restrictive and potentially adverse regulation relating to, among other things, capital
structure, leverage, management, dividends and transactions with affiliates. Registered investment companies are not permitted to operate
their business in the manner in which we operate (and intend to operate) our business. Specifically, if we were required to register
under the Investment Company Act, provisions of the Investment Company Act would limit (and in some cases even prohibit) our ability
to raise additional debt and equity securities or issue options or warrants (which could impact our ability to compensate key employees),
limit our ability to use financial leverage, limit our ability to incur indebtedness, and require changes to the composition of our Board
of Directors. Provisions of the Investment Company Act would also prohibit (subject to certain exceptions) transactions with affiliates.

Accordingly,
if we were required to register as an investment company, we would not be permitted to have many of the relationships that we have or
expect that we may have with affiliated companies.

If
at any time it were established that we had been operating as an investment company in violation of the registration requirements of
the Investment Company Act, there would be a risk, among other material adverse consequences, that we could become subject to monetary
penalties or injunctive relief, or both, or that we would be unable to enforce contracts with third parties or that third parties could
seek to obtain rescission of transactions with us undertaken during the period in which it was established that we were an unregistered
investment company.

20

Insurance
regulations to which we are, or may become, subject, and potential changes thereto, could have a significant and negative effect on our
business.

Although
we do not presently expect that we will conduct business in any jurisdiction other than the Cayman Islands, we cannot assure you that
insurance regulators in the United States or elsewhere will not review our activities and claim that we are subject to such jurisdiction’s
insurance licensing requirements. In addition, we are subject to indirect regulatory requirements imposed by jurisdictions that may limit
our ability to provide reinsurance. For example, our ability to write reinsurance