1847 Holdings - EFSH STOCK NEWS

1847 Holdings (OTC:EFSH) announced its intention to request a review of the delisting determination issued by the NYSE American. The company received a notice on April 3, 2025, from NYSE American stating that NYSE Regulation staff has initiated delisting proceedings for the company's common shares, resulting in an immediate trading suspension.

The delisting determination was made under Section 1003(f)(v) of the NYSE American Company Guide, citing the low selling price of EFSH's common shares. The company has until April 10, 2025, to provide required notice for a review of the staff's determination. During the review period, trading of EFSH's common shares will remain suspended, and the shares will not be quoted on the OTC Pink Sheets or any other OTC market level.

1847 Holdings (OTC PINK:EFSH) has received a delisting notice from NYSE American, resulting in immediate suspension of trading of its common shares. The delisting is due to the low selling price of shares under Section 1003(f)(v) of the NYSE American Company Guide. The company's shares will transition to trading on the OTC PINK Market under symbol 'EFSH'.

The company plans to proceed with a previously announced exchange offer allowing shareholders to convert common shares into newly issued Series G Preferred Shares with a stated value of $0.15. These preferred shares will carry a 15% annual cumulative cash dividend and be convertible into common shares at $2.40 per share. The company maintains the option to redeem preferred shares at 110% of stated value.

The company has until April 10, 2025 to appeal the delisting decision. The transition is not expected to impact business operations, partnerships, or SEC reporting obligations.

1847 Holdings (NYSE:EFSH) has announced a board-approved exchange offer where holders of common shares can exchange their stock for newly issued Series G preferred shares. The offer allows exchanging up to 26,008,978 common shares at a 1:1 ratio.

The Series G preferred shares will have a stated value of $0.15 and carry a 15% annual cumulative cash dividend. The company maintains the option to redeem these preferred shares at 110% of their stated value. The preferred shares are convertible into common shares at $2.40 per share, subject to certain restrictions.

Key conditions include maintaining at least 300 public holders and 500,000 common shares outstanding post-offer. The exchange will only proceed if the minimum threshold of 26,008,978 common shares is met.

1847 Holdings (NYSE:EFSH) reported financial results for 2024, showing a 10.7% revenue increase to $15.7 million and an 18.6% gross profit growth to $7.8 million compared to 2023. The company's gross margin improved by 330 basis points to 49.5%.

Key operational highlights include the acquisition of CMD, which reported pro forma revenues of $30.8 million (13.5% increase) and net income growth of 28.9% to $7.5 million. The company successfully sold High Mountain for $17 million, approximately double its purchase price.

Despite these improvements, the company reported a significant net loss from continuing operations of $106.8 million, largely due to non-cash items including a $77.6 million loss on warrant liabilities. Looking ahead, 1847 Holdings projects revenue exceeding $45 million with $1.3 million net income in 2025, and revenue over $60 million with $5.0 million net income in 2026.

1847 Holdings (NYSE:EFSH) announced it is evaluating strategic alternatives for its subsidiary, CMD Inc., following significant inbound interest from strategic and financial sponsors. The company has engaged BMO Capital Markets to explore potential options aimed at maximizing shareholder value.

CMD, a provider of door solutions, custom cabinetry, and building enhancements, has demonstrated strong financial performance:

• Revenue reached $23.3 million for the nine months ended September 30, 2024, up 21.8% year-over-year
• Gross profit increased 51.3% to $10.8 million
• Operating income grew 85.4% to $6.7 million
• Net income rose 90.6% to $6.6 million

The company serves multi-family residential, institutional, and commercial markets, with a differentiated market position and high-margin business model.

1847 Holdings (NYSE:EFSH) has announced a significant financial turnaround, projecting its first-ever net income of $1.3 million in 2025, with revenue exceeding $45 million. The company expects these figures to grow substantially in 2026, targeting $5.0 million in net income and revenue surpassing $60 million.

The company's transformation strategy has focused on three key areas:

• Portfolio streamlining
• Operational optimization
• Acquisition of high-margin businesses

Notable achievements include the acquisition of CMD Inc., described as a highly profitable cash-generating business, and the strategic divestiture of High Mountain Door & Trim Inc. to Builders FirstSource for approximately $17 million, representing more than double their initial investment.

1847 Holdings' (NYSE:EFSH) subsidiary CMD Inc., a Las Vegas-based cabinetry manufacturer, reported strong financial results for FY2023 and the first nine months of 2024. In FY2023, revenues grew 97.5% to $27.1 million, with net income reaching $5.8 million, marking a significant turnaround from a $1.5 million loss in 2022.

For the nine months ended September 30, 2024, CMD continued its growth trajectory with revenues up 21.8% to $23.3 million and net income increasing 90.6% to $6.6 million. The company has implemented strategic initiatives including expansion into Arizona and Utah markets, establishing a new division for tract home projects in Northern Las Vegas, and plans to enter the Ready-To-Assemble cabinetry market for multi-family housing through synergies with subsidiary Innovative Cabinets and Design.

1847 Holdings (NYSE American: EFSH) has engaged Two Roads Advisors, a boutique investment bank, to manage the sale of its subsidiary Wolo Manufacturing Corp. Wolo specializes in manufacturing and distributing vehicle horns and safety products, including electric and air horns for various vehicles and industrial equipment.

This strategic move aligns with 1847 Holdings' portfolio optimization strategy, shifting focus to acquiring businesses with $5 million or more in EBITDA. While the company remains open to smaller acquisitions ($1-2 million EBITDA), these will only be considered as tuck-in acquisitions to complement existing platforms.

The company aims to identify a strategic buyer for Wolo that can ensure a smooth transition while maximizing stakeholder value. This decision reflects 1847 Holdings' strategic shift toward larger acquisitions, such as CMD, as smaller standalone acquisitions become less practical with the company's increasing scale.

1847 Holdings (NYSE American: EFSH) has announced a special dividend of newly designated Series E Preferred Shares. Shareholders of record as of January 10, 2025, will receive one Series E Preferred Share for each Common Share held. The Series E Preferred Shares will carry 1,000,000 votes per share and will vote together with Common Shares specifically on certain upcoming shareholder meeting proposals.

These preferred shares will not provide any dividends and will be automatically redeemed if not voted before the shareholder meeting opens or upon proposal approval. The shares will be issued in book-entry format only, with no physical certificates. Brokers must finalize allocation instructions with VStock Transfer by January 17, 2025.