Company's Stock Split Intended to Maintain NYSE Compliance, Reduce Float and Attract a Broader Universe of Investors
NEW YORK, NY / ACCESSWIRE / September 1, 2023 / 1847 Holdings LLC("1847" or the "Company") (NYSE American:EFSH), a unique holding company that combines the attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, today announced that it will effect a 1-for-25 reverse stock split ("reverse split") of its common shares that will become effective on September 11, 2023. 1847's common shares will continue to trade on NYSE American under the symbol "EFSH" and will begin trading on a split-adjusted basis when the market opens on September 11, 2203. The new CUSIP number for the common shares following the reverse split will be 28252B887.
Among other considerations, the reverse split is intended to maintain the Company's compliance with the minimum bid price requirement for maintaining the listing of its common shares on NYSE American and to make the bid price more attractive to investors.
Mr. Ellery W. Roberts, CEO of 1847, commented, "We are effectively executing on our strategic plan and remain on track to achieve $90 million in sales in 2023, not including our recently announced definitive agreement to acquire a premier consumer products company with over $20 million in sales for 2022. Importantly, we are now in a much stronger financial position and recently announced the restructuring of our convertible notes, thereby eliminating the potential equity dilution. Having significantly enhanced our capital structure, we believe this is the ideal time to reverse split our stock, which will reduce our shares outstanding and position us to attract a broader universe of institutional and other investors given the traction in our business. In addition, our cash flow is improving, which we anticipate will allow us to resume dividends and opportunistically repurchase stock in the future, subject to establishing a stock buyback plan and future market conditions. Also, as previously noted, Egan-Jones recently affirmed their BB+ rating on our senior credit facility, which further illustrates the strength of our balance sheet. I have personally purchased shares in the open market, and plan to purchase additional shares subject to limitations within the Company's insider trading policy. Overall, I am more excited than ever about the outlook for the business, and believe this final step in our restructuring will allow us to drive significant value for shareholders in the months and years ahead."
About 1847 Holdings LLC
1847 Holdings LLC (NYSE American:EFSH), a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings' investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings can consistently acquire businesses it views as "solid" for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings' ability to pay regular and special dividends to shareholders. For more information, visit www.1847holdings.com.
For the latest insights, follow 1847 on Twitter.
This press release may contain information about 1847 Holdings' view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings.
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
SOURCE: 1847 Holdings LLC
View source version on accesswire.com: