MORRISTOWN, N.J.--(BUSINESS WIRE)--Majesco (NYSE American: MJCO), a global provider of cloud insurance software solutions for insurance business transformation, today announced that it launched its previously announced rights offering.

Under the terms of the rights offering, Majesco will distribute to its shareholders, at no charge, one non-transferable subscription right for each share of common stock held or deemed to be held as of 5:00 p.m. (Eastern Time) on February 5, 2019, the record date. Each subscription right will entitle the holder to purchase one-sixth of a share of Majesco’s common stock at a subscription price of $7.10 per whole share. If all of the basic subscription rights are exercised, the total purchase price of the shares offered in the rights offering will be approximately $45,502,043.

The rights offering also includes an over-subscription right, which entitles a shareholder who exercises its basic subscription rights in full (other than those subscription rights to acquire less than one whole share of common stock, which cannot be exercised) the right to purchase, at the same subscription price of $7.10 per whole share, some or all of the additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to availability and pro rata allocation of shares among persons exercising this oversubscription privilege.

Representatives of Majesco Limited, a public limited company domiciled in India which currently owns 69.63% of Majesco’s issued and outstanding common stock, have informed Majesco that it intends to exercise its basic subscription rights.

The Company intends to use the net proceeds from the rights offering to fund the remainder of its acquisition of Exaxe, pay off debt, and accelerate cloud growth, which includes additional acquisition opportunities.

The Company also announced that the mailing of offering materials to shareholders is expected to begin by February 11, 2019, and that the subscription period will expire at 5:00 p.m. (Eastern Time) on February 25, 2019. Majesco may, in its sole discretion, extend the expiration of the offering period for shareholders for a period not to exceed 30 days.

The Company has filed a registration statement on Form S-1 (including a prospectus) (File No. 333-228680; as amended, the “Registration Statement”). Before investing, please read the prospectus included in the Registration Statement, including any amendments thereto and any information incorporated by reference therein, and other documents Majesco has filed with the SEC for more complete information about Majesco and the rights offering.

About Majesco

Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 160 insurance companies worldwide in P&C, L&A and Group/ Employee Benefits are transforming their businesses with Majesco’s solutions. Our market leading software, consulting and services uniquely underpin the entire insurance value chain and are designed to empower insurers with the agility, innovation and speed needed to meet their transformation opportunities. Majesco’s solutions include policy management, new business / underwriting, rating, billing, claims management, distribution management, BI/ analytics, predictive modeling, digital platform with mobile and portal, testing services, cloud services, bureau and content services, transformation services, consulting services and more. For more details on Majesco, please visit www.majesco.com.