1847 Goedeker Announces Closing of $205 Million Public Offering, $70 Million Debt Financing and Acquisition of Appliances Connection

Rhea-AI Summary

1847 Goedeker Inc. (NYSE American: GOED) has successfully completed a $205 million public offering and $70 million debt financing, along with acquiring Appliances Connection. This acquisition positions Goedeker as the largest pure-play online retailer of household appliances in the US. The public offering involved 91,111,111 units at $2.25 each, providing significant gross proceeds. The funds will help support the acquisition and working capital needs, aligning with Goedeker's vision to transform the appliance shopping experience in America.

Positive

• Acquisition of Appliances Connection enhances market position as a leading online appliance retailer.
• Gross proceeds from the public offering totaled approximately $205 million, significantly boosting the company's financial resources.

Negative

• The issuance of 91,111,111 units may lead to potential shareholder dilution.

1847 Goedeker Inc. (NYSE American: GOED, GOED WS) (“Goedekers” or the “Company”), a one-stop e-commerce destination for appliances and furniture, today announced the closing of its $205 million underwritten public offering, $70 million debt financing and simultaneous closing of its acquisition of Appliances Connection, creating the largest pure-play online retailer of household appliances in the US.

The underwritten public offering comprised 91,111,111 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock. Each unit was sold to the public at a price of $2.25. The gross proceeds to the Company from the offering were approximately $205 million before deducting underwriting discounts, commissions and other offering expenses. This includes the exercise by the underwriters of their over-allotment option to purchase up to an additional 2,000,000 warrants. The warrants included in the units are exercisable immediately, have an exercise price of $2.25 per share and expire five years from the date of issuance. The warrants began trading on the NYSE American on May 28, 2021 under the ticker symbol “GOED WS”. The Company has granted the underwriters a 30-day option to purchase up to 2,000,000 additional shares of common stock to cover over-allotments, if any.

The Company utilized the net proceeds from this offering to fund a portion of the purchase price for the acquisition of Appliances Connection and plans to use the remaining net proceeds for working capital and general corporate purposes. The completion of the Appliances Connection acquisition accelerates Goedekers’ long-term vision of building a billion-dollar enterprise that changes the way Americans shop for appliances.

The Company also announced the closing of a $70 million senior secured credit facility with a leading regional commercial bank, consisting of a simultaneous $60 million term loan used to partially fund the cash portion of the purchase price for the acquisition of Appliances Connection and a $10 million revolving loan for future working capital needs.

ThinkEquity, a division of Fordham Financial Management, Inc., acted as sole book-running manager for the public offering and sole placement agent for the debt financing.

A registration statement on Form S-1 (File No. 333-255709) relating to the units was filed with the Securities and Exchange Commission (“SEC”) and became effective on May 27, 2021. This offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from ThinkEquity, a division of Fordham Financial Management, Inc., 17 State Street, 22nd Floor, New York, New York 10004, by telephone at (877) 436-3673, by email at prospectus@think-equity.com. Investors may also obtain these documents at no cost by visiting the SEC’s website at http://www.sec.gov.

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

About 1847 Goedeker Inc.

1847 Goedeker Inc. is an industry leading e-commerce destination for appliances, furniture, and home goods. Since its founding in 1951, Goedekers has transformed from a local brick and mortar operation serving the St. Louis metro area to a respected nationwide omnichannel retailer that offers one-stop shopping for national and global brands. While the Company maintains its St. Louis showroom, over 95% of sales are placed through its website (www.Goedekers.com). Goedeker’s provides visitors an easy to navigate shopping experience and offers more than 141,000 items organized by category and product features. Learn more at www.Goedekers.com.

About Appliances Connection

Founded in 2000, Appliances Connection is one of the leading e-commerce retailers of household appliances with a 200,000 square foot warehouse in Hamilton, NJ and a 23,000 square foot showroom in Brooklyn, New York. Appliances Connection carries many household name brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG, and Samsung, and also carries many major luxury appliance brands such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air, Viking among others. Appliance Connection provides appliance installation services and appliance removal services. In addition to selling appliances, it also sells furniture, fitness equipment, plumbing fixtures, televisions, outdoor appliances, and patio furniture, as well as commercial appliances for builder and business clients.

Forward Looking Statements

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and Exchange Commission and other reports filed with the Securities and Exchange Commission thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

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FAQ

What is the significance of Goedeker's acquisition of Appliances Connection?

The acquisition makes Goedeker the largest pure-play online retailer of household appliances in the US, enhancing its market presence.

How much did Goedeker raise in its public offering?

Goedeker raised approximately $205 million from its public offering.

What are the financial implications of Goedeker's debt financing?

The $70 million debt financing will help fund the acquisition and meet working capital needs.

What potential risks are associated with the new shares issued by Goedeker?

Issuing 91,111,111 units may dilute existing shareholders' stakes.

When did Goedeker's public offering and acquisition close?

The public offering and acquisition of Appliances Connection closed recently, with significant announcements on June 2, 2021.