1847 Secures Additional Unsecured Debt Financing with a Premier Institutional Investor to Accelerate Growth

Rhea-AI Summary

1847 Holdings LLC (NYSE American:EFSH) announced the closure of an unsecured debt financing with Mast Hill Fund, totaling $878,000. This includes an original issue discount of $87,800 and two five-year warrants for purchasing up to 381,260 common shares at varying exercise prices. CEO Ellery W. Roberts stated that this capital will support growth ahead of a revolving credit facility expected to be finalized by the end of the quarter. The financing reflects continued institutional support as the company aims to strengthen its business infrastructure and pursue potential growth opportunities.

Positive

• Secured $878,000 in unsecured debt financing.
• Institutional backing from Mast Hill Fund indicates confidence in the company's growth prospects.
• Funds will facilitate growth ahead of a revolving credit facility.
• Warrants allow potential future equity financing at favorable terms.

Negative

• None.

NEW YORK, NY / ACCESSWIRE / February 28, 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 closed an unsecured debt financing with Mast Hill Fund. The Company issued to Mast Hill Fund a promissory note in the aggregate principal amount of $878,000, which includes an original issue discount in the amount of $87,800, five-year warrant for the purchase of an aggregate of 182,917 common shares of the Company at an exercise price of $4.20 per share (subject to adjustment), which may be exercised on a cashless basis if the market price of the common shares is greater than the exercise price, and a five-year warrant for the purchase of 198,343 common shares of the Company at an exercise price of $0.01 per share (subject to adjustment), which may be exercised on a cashless basis if the market price of the common shares is greater than the exercise price. Additional details on the transaction are available in the Company's Form 8-K, which has been filed with the Securities and Exchange Commission and is available on the Company's website.

Mr. Ellery W. Roberts, CEO of 1847, commented, "This additional bridge capital will be used to fund growth in advance of a revolving credit facility, as previously announced. We anticipate the revolving line of credit being finalized by the end of the quarter and we are thankful for the continued support of Mast Hill Fund as we manage this phase of our growth."

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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FAQ

What is the total amount of the unsecured debt financing secured by 1847 Holdings (EFSH)?

1847 Holdings secured a total of $878,000 in unsecured debt financing.

What are the terms of the warrants issued by 1847 Holdings (EFSH)?

The company issued two five-year warrants for the purchase of 381,260 common shares at exercise prices of $4.20 and $0.01.

How will the funds from the debt financing be used by 1847 Holdings (EFSH)?

The funds will be used to support growth in advance of a revolving credit facility.

When does 1847 Holdings (EFSH) expect to finalize its revolving credit facility?

1847 Holdings anticipates finalizing the revolving credit facility by the end of the quarter.