1847 Secures $750,000 Credit Facility for its Wolo Manufacturing Subsidiary

Rhea-AI Summary

1847 Holdings LLC (EFSH) secures a $750,000 credit facility for its subsidiary, Wolo Manufacturing Corp. Wolo is a leading manufacturer and distributor of vehicle horns and safety products, and the credit facility will empower Wolo with working capital to fulfill strong customer demand and increase its sales potential by 50% to 70% year-over-year in 2024.

Insights

Financial Analyst

The securing of a $750,000 credit facility by 1847 Holdings LLC for its Wolo Manufacturing Corp. subsidiary is a strategic financial maneuver. This infusion of capital is primarily aimed at bolstering Wolo's working capital, which is critical for maintaining operational efficiency and capitalizing on market opportunities. The potential increase in sales by 50% to 70% year-over-year, as projected by the CEO, suggests a strong growth trajectory that could significantly impact the company's revenue stream and profitability.

From a financial perspective, the credit facility's role in enhancing liquidity without equity dilution is noteworthy. Equity dilution can adversely affect existing shareholders by reducing their ownership percentage and potentially their share value. By avoiding this, the company preserves shareholder value while still securing necessary funds. This move could be seen as a positive signal to the market, indicating management's confidence in the company's ability to service debt through operational cash flow rather than through issuing new shares.

Market Research Analyst

Wolo's positioning in the vehicle horns and safety products market, including a diverse product range for various vehicles, is strategically advantageous. The mention of strong customer demand indicates that Wolo has effectively tapped into a market need, which is critical for sustained growth. Additionally, the reference to easing supply chain pressures is an external factor that could positively influence Wolo's ability to meet this demand and optimize production.

It is essential to contextualize this within the broader industry trends. If the automotive and industrial equipment sectors are experiencing growth, Wolo's expanded sales potential could align with these trends. However, if the industry is facing headwinds, such as regulatory changes or economic downturns, Wolo's optimism may be tempered by larger market forces. Understanding the competitive landscape and the company's market share is also crucial for evaluating the feasibility of the projected sales growth.

NEW YORK, NY / ACCESSWIRE / January 24, 2024 / 1847 Holdings LLC ("1847" or the "Company") (NYSE American:EFSH), a unique holding company that combines the attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, today announced that it has secured a $750,000 credit facility for its Wolo Manufacturing Corp. ("Wolo") subsidiary.

Wolo is a leading manufacturer and distributor of vehicle horns and safety products (electric, air, truck, marine, motorcycle and industrial equipment), and offers vehicle emergency and safety warning lights for cars, trucks, industrial equipment and emergency vehicles.

Mr. Ellery W. Roberts, CEO of 1847, commented, "We are pleased to have secured this credit facility for Wolo, a strategic move that empowers Wolo with working capital to fulfill orders due to strong customer demand. Furthermore, this facility strengthens Wolo's liquidity and increases its financial flexibility, enabling it to grow its business without any equity dilution at either the 1847 or subsidiary level. With this enhanced credit capacity, combined with growing customer demand and easing of supply chain pressure, Wolo has the potential to increase its sales by 50% to 70% year-over-year in 2024."

Additional details Wolo's credit facility 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 former 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 is the ticker symbol for 1847 Holdings LLC?

The ticker symbol for 1847 Holdings LLC is EFSH.

What is the purpose of the $750,000 credit facility secured by 1847 Holdings LLC?

The credit facility is intended to provide working capital for 1847's subsidiary, Wolo Manufacturing Corp., to fulfill strong customer demand and increase sales potential.

What products does Wolo Manufacturing Corp. specialize in?

Wolo is a leading manufacturer and distributor of vehicle horns and safety products, including electric, air, truck, marine, motorcycle, and industrial equipment, as well as vehicle emergency and safety warning lights.

Who is the CEO of 1847 Holdings LLC?

The CEO of 1847 Holdings LLC is Mr. Ellery W. Roberts.

What is the potential sales increase for Wolo Manufacturing Corp. in 2024?

Wolo has the potential to increase its sales by 50% to 70% year-over-year in 2024, supported by the enhanced credit capacity, growing customer demand, and easing supply chain pressure.

Where can additional details about Wolo's credit facility be found?

Additional details about Wolo's credit facility 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.