NEW YORK, NY / ACCESSWIRE / November 21, 2022 / 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 declared a dividend in the form of warrants to purchase the Company's common shares at $4.20 per common share.
The warrants will be issued on January 3, 2022 to shareholders of record on December 23, 2022. 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 become exercisable 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 Company expects to file such registration statement 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 will issue 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 with the SEC prior to the date of issuance of the warrants. 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.
Ellery W. Roberts, CEO and Chairman of the Board of the Company, commented, 'We are more encouraged than ever by the outlook for the business, illustrated by our recent 2023 guidance for revenue in excess of $60 million, gross profit margin of approximately 40% and over $7 million of cash flow from operations. Our Board of Directors has granted this dividend to our shareholders of record as a form of appreciation to both old and new shareholders alike. We are appreciative of the confidence reflected by these shareholders in supporting our Company as we seek to expand our platform and drive shareholder value.'
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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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.
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SOURCE: 1847 Holdings LLC
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