Bermuda-based Maiden Holdings Ltd. has announced that it has entered into an agreement with its founding shareholders, Michael Karfunkel, George Karfunkel and Barry Zyskind, to exchange all of their outstanding warrants for restricted Maiden common shares.

The outstanding warrants, which entitle the holders to purchase 4,050,000 Maiden common shares, were issued June 7, 2007 with an exercise price of $10 per share, an expiration date of June 7, 2017 and a three-year lock-up period that expired on June 7, 2010.

The founding shareholders will receive an aggregate of 1,800,000 Maiden common shares in exchange for the warrants. The shares issued will not be registered under the Securities Act of 1933 and will be subject to a three-year lock-up expiring on September 20, 2013. As of September 17, 2010, Maiden had 70,305,511 common shares outstanding, exclusive of the common shares to be issued in connection with this exchange.