1847 Holdings LLC Announces Closing of $11.1 Million Public Offering

Rhea-AI Summary

1847 Holdings (NYSE American: EFSH) has closed its previously announced public offering, raising $11.1 million in gross proceeds before deducting placement agent fees and expenses. The offering consisted of 8,809,512 units priced at $1.26 per unit. Each unit includes one common share or a pre-funded warrant, plus two series of warrants: Series A with an exercise price of $1.90 and Series B at $2.52 per share. Spartan Capital Securities served as the sole placement agent for the offering.

Positive

• Successfully raised $11.1 million in gross proceeds
• Multiple warrant series provide potential for additional capital through exercise

Negative

• Potential significant dilution to existing shareholders due to 8.8M new units
• Offering price and warrant exercise prices suggest relatively low valuation
• Additional dilution possible if warrants are exercised

Insights

Financial Analyst

This $11.1 million public offering represents a significant capital raise for 1847 Holdings, but comes with notable dilution concerns given the company's small $273,765 market cap. The structure includes multiple warrant components that could lead to further dilution. The offering price of $1.26 per unit and warrant exercise prices of $1.90 and $2.52 suggest optimistic price targets, but may be challenging to achieve given current market conditions.

The capital raise strengthens the balance sheet and provides funds for potential acquisitions in line with their middle market investment strategy. However, the significant dilution and complex security structure may pressure share price in the near term. Investors should carefully consider the impact of potential warrant exercises and the company's ability to effectively deploy the new capital.

NEW YORK, NY / ACCESSWIRE / October 30, 2024 / 1847 Holdings LLC (NYSE American:EFSH) ("1847 Holdings" or the "Company"), a holding company specializing in identifying over-looked, deep value investment opportunities in middle market businesses, announced today it has closed its previously announced fully marketed public offering of securities for gross proceeds of $11.1 million, prior to deducting placement agent fees and other offering expenses payable by the Company.

The public offering was comprised of 8,809,512 units, at a public offering price of $1.26 per unit. Each unit is comprised of (i) one (1) common share or a pre-funded warrant to purchase one (1) common share at an exercise price of $0.01 per share, (ii) a series A warrant to purchase one (1) common share at an exercise price of $1.90 per share and (iii) a series B warrant to purchase one (1) common share at an exercise price of $2.52 per share.

Spartan Capital Securities, LLC acted as the sole placement agent in connection with the offering.

The Securities and Exchange Commission ("SEC") declared effective a registration statement on Form S-1 relating to these securities on October 28, 2024. A final prospectus relating to and describing the terms of the offering was filed with the SEC on October 30, 2024 and is available on the SEC's website at http://www.sec.gov. The offering was made only by means of a prospectus, copies of which may be obtained from: Spartan Capital Securities, LLC, 45 Broadway, New York, NY 10006, at (212) 293-0123.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About 1847 Holdings

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.

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

View the original press release on accesswire.com

FAQ

What was the size of 1847 Holdings (EFSH) October 2024 public offering?

1847 Holdings raised $11.1 million in gross proceeds through an offering of 8,809,512 units priced at $1.26 per unit.

What is included in each unit of EFSH's October 2024 offering?

Each unit includes one common share or pre-funded warrant ($0.01 exercise price), one Series A warrant ($1.90 exercise price), and one Series B warrant ($2.52 exercise price).

Who was the placement agent for EFSH's October 2024 public offering?

Spartan Capital Securities, acted as the sole placement agent for the offering.

What was the price per unit in EFSH's October 2024 public offering?

The public offering price was $1.26 per unit.