1847 Holdings Announces Successful Restructuring of Promissory Notes to Non-Dilutive Debt Instruments

Rhea-AI Summary

1847 Holdings successfully restructures Promissory Notes, reducing equity dilution and improving financial position

Positive

• Restructuring of Promissory Notes minimizes equity dilution
• Cash flow generated from investments strengthens financial position
• Negotiating more favorable terms with lenders
• No near-term need for equity funding

Negative

• None.

Projected cash flow expected to support the Company's growth going forward

NEW YORK, NY / ACCESSWIRE / August 31, 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 has successfully restructured all of its Promissory Notes, with two institutional investors, totaling approximately $1.75 million outstanding. Based on the agreements with the investors, the Promissory Notes are no longer convertible to equity, as long as they are repaid by the Company over a 12 month amortization schedule.

Mr. Ellery W. Roberts, CEO of 1847, commented, "Restructuring these notes is an important milestone and is designed to protect the interests of shareholders by minimizing equity dilution. As I have stated on multiple occasions, we had a short term cash need driven by the rapid growth of our portfolio companies. However, with the cash flow now being generated as a result of these investments, we are in a much stronger financial position. In turn, this has allowed us to negotiate more favorable terms, both with our existing lenders, as well as potential future lenders, as we seek to appropriately leverage debt to support our accretive M&A strategy. To be clear, we do not believe we have any near-term need for equity funding. Given our growth and improving cash flow, we believe we are in a strong position to maximize returns for shareholders going forward."

Additional details on the restructuring of the Promissory Notes will be available upon the filing of a Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission and available on the Company's website once filed.

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.

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Forward-Looking Statements

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.

Contact:

Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EFSH@crescendo-ir.com

SOURCE: 1847 Holdings LLC

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