1847 Issues Special Warrant Dividend on Common Shares

Rhea-AI Summary

1847 Holdings LLC (NYSE American:EFSH) has announced a special dividend in the form of warrants, issued to shareholders on January 3, 2023. Shareholders will receive one warrant for every ten common shares owned as of December 23, 2022, allowing the purchase of common shares at $4.20, expiring on January 3, 2026. The company anticipates revenues exceeding $60 million in 2023, driven by recent acquisitions. Warrants will be mailed to shareholders, and a registration statement is expected to be filed in Q1 2023.

Positive

• Projected revenue exceeding $60 million for 2023.
• Gross profit margin estimated at around 40%.
• Expected cash flow from operations over $7 million.
• Special warrant dividend enhances shareholder value.
• Recent acquisition expected to contribute significant revenue.

Negative

• None.

NEW YORK, NY / ACCESSWIRE / January 9, 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, announced today that its Board of Directors has formally issued the previously announced dividend in the form of warrants to purchase the Company's common shares at $4.20 per common share. The warrants were issued on January 3, 2023 to shareholders of record on December 23, 2022. In connection with the issuance of the dividend, the Company has engaged VStock Transfer, LLC, the Company's transfer agent, to act as the Company's Warrant Agent to oversee the issuance of the dividend.

Each shareholder of the Company's common shares will receive one warrant for every 10 common shares owned as of the record date (with the number of warrants rounded down to the nearest whole number). Each warrant will entitle the holder to purchase one common share at an exercise price of $4.20 per common share, subject to certain anti-dilution adjustments, and will expire on January 3, 2026. The warrants will generally be exercisable in whole or in part beginning on the later of January 3, 2024 or the date that a registration statement has been filed with and declared effective by the Securities and Exchange Commission (the "SEC") with respect to the issuance of the common shares underlying the warrants. The warrants are being mailed out to each shareholder's address on file with VStock Transfer, LLC this week and shareholders should expect to receive their warrants by the end of next week. If you are a shareholder and have not received your warrants by that time, please contact info@1847holdings.com.

Ellery W. Roberts, CEO and Chairman of the Board of the Company, commented, "We believe 1847 is in the strongest position in our history, and remain confident in our prior guidance for 2023 of revenue in excess of $60 million, gross profit margin of approximately 40% and over $7 million of cash flow from operations. This guidance does not include our recently announced, planned acquisition of ICU Eyewear, which is expected to report $25.0 million in revenue and $2.0 million of adjusted EBITDA in 2022. We believe our strategy of organic growth, coupled with acquisitions of accretive and cash flow positive companies at attractive multiples, will continue to drive meaningful value for shareholders. Given the outlook for the business and upcoming milestones, we are delighted to deliver this warrant dividend to our loyal shareholders as a form of appreciation for your support."

The Company expects to file its registration statement covering the resale of the common shares underlying the warrants in the first quarter of 2023. The warrants will be subject to redemption at the option of the Company at $0.001 per warrant upon not less than thirty days' notice to the holders. The Company issued the warrants pursuant to a warrant agreement which will be attached as an exhibit to the Company's Current Report on Form 8-K that will be filed today. A copy of the registration statement and related prospectus relating to the issuance of the common shares underlying the warrants may be obtained for free, when available, on the SEC website at www.sec.gov. The resale of the warrants themselves will not be registered under the Securities Act of 1933, as amended, and the warrants will be subject to restrictions on resale and transfer. Upon issuance, the warrants will not have an active trading market and no trading market in the warrants is expected to develop.

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.

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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FAQ

What is the warrant dividend announced by 1847 Holdings?

1847 Holdings has issued a special dividend in the form of warrants allowing shareholders to purchase common shares at $4.20.

When can shareholders exercise their warrants?

The warrants can be exercised starting January 3, 2024, or once a registration statement is effective.

What is the expiration date for the warrants issued by 1847?

The warrants will expire on January 3, 2026.

How much revenue does 1847 Holdings expect for 2023?

1847 Holdings projects its revenue to exceed $60 million in 2023.

What is the expected adjusted EBITDA from the recent acquisition?

The recent acquisition is expected to generate $2.0 million in adjusted EBITDA.