1847 Holdings Initiates Transition to OTCQB Market Following NYSE American Delisting Decision

Rhea-AI Summary

1847 Holdings (NYSE:EFSH) has initiated the transition to the OTCQB Venture Market following NYSE American's decision to delist the company's shares. Despite the delisting, the company reported significant financial improvements, including 380% revenue growth in Q1 2025 and strategic divestitures totaling approximately $17 million.

The company has provided strong guidance for 2025, expecting revenue to exceed $45 million with net income of $1.3 million. For 2026, projections include revenue over $60 million and net income of $5.0 million. Trading on NYSE American has been suspended since April 3, 2025, and the company plans to reapply for national exchange listing in the future.

Positive

• Q1 2025 revenue growth of 380% year-over-year
• Strategic divestiture of High Mountain Door & Trim for $17 million
• 2025 guidance projects revenue over $45M with $1.3M net income
• 2026 guidance forecasts revenue exceeding $60M with $5.0M net income
• Significant gross profit expansion reported
• Meaningful debt reduction through strategic initiatives

Negative

• Delisting from NYSE American exchange
• Trading suspension since April 3, 2025
• Unsuccessful appeal against NYSE American delisting decision
• Downgrade to OTCQB market may reduce trading liquidity and institutional interest

Insights

Financial Markets Analyst

1847 Holdings' delisting and OTCQB transition signals significant challenges despite management's positive financial outlook and recent divestitures.

1847 Holdings' transition to the OTCQB Market following NYSE American delisting represents a substantial downgrade in exchange status that will likely impact liquidity, institutional investment access, and overall market perception. The company has been suspended from NYSE American since April 3, 2025, indicating prolonged compliance issues that ultimately led to the exchange's final decision on July 1, 2025.

Despite this concerning development, management highlights several positive financial metrics: 380% Q1 revenue growth, expanded gross profit, and debt reduction through strategic divestitures. These include the sale of High Mountain Door & Trim for approximately $17 million and the divestiture of ICU Eyewear.

Management has also provided ambitious forward guidance, projecting $45 million in 2025 revenue with $1.3 million in net income, and $60 million in 2026 revenue with $5 million in net income. While these projections suggest potential operational improvements, the delisting action indicates NYSE American had concerns about the company's compliance with listing standards.

Moving to the OTCQB typically results in reduced analyst coverage, decreased trading volume, and potentially wider bid-ask spreads. Though management indicates plans to eventually reapply for a national exchange listing, such transitions can be challenging and depend on sustained financial performance and compliance with higher listing standards. This regulatory setback creates uncertainty despite management's optimistic narrative about the company's financial trajectory.

Transition Accompanies Strong Revenue Growth, Expanded Profitability, and Strengthened Balance Sheet

NEW YORK, July 08, 2025 (GLOBE NEWSWIRE) -- 1847 Holdings LLC ("1847" or the "Company"), a holding company specializing in identifying overlooked, deep-value investment opportunities in middle market businesses, today announced that it has initiated the process to transition the trading of its common shares to the OTCQB® Venture Market, operated by OTC Markets Group Inc. The Company has submitted an application for quotation, which is currently under review. An update and confirmation of the trading commencement date will be provided upon approval.

“We are taking deliberate steps to ensure continued trading access and visibility for our shareholders,” said Ellery W. Roberts, CEO of 1847 Holdings. “We believe the OTCQB Market provides an efficient platform for companies like ours, and we intend to use this opportunity to continue strengthening our financial performance and balance sheet. Over the past year, we’ve delivered substantial improvements—revenue growth of more than 380% in Q1 2025, significant gross profit expansion, and meaningful debt reduction through strategic initiatives, including the divestiture of High Mountain Door & Trim Inc. for approximately $17 million and the sale of ICU Eyewear. We believe these actions underscore our disciplined approach to value creation and our strategy of acquiring, enhancing, and monetizing undervalued businesses. We are reaffirming our 2025 guidance of revenue expected to exceed $45 million and net income of approximately $1.3 million. For 2026, we anticipate revenue to surpass $60 million with net income rising to approximately $5.0 million. At the appropriate time, we plan to reapply for listing on a national securities exchange as we continue executing our strategy and building long-term shareholder value.”

The Company’s application follows a determination by NYSE American to delist its common shares. As previously disclosed, the Company appealed the initial staff determination; however, on July 1, 2025, a Listing Qualifications Panel affirmed the decision to proceed with delisting. Trading on NYSE American has been suspended since April 3, 2025, and a Form 25 is expected to be filed with the U.S. Securities and Exchange Commission to formally complete the delisting process.

Additional information, including the effective date of OTCQB quotation, will be provided as soon as practicable.

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.

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

FAQ

Why is EFSH stock being delisted from NYSE American?

1847 Holdings is being delisted following a determination by NYSE American and an unsuccessful appeal to the Listing Qualifications Panel. Trading has been suspended since April 3, 2025.

What are 1847 Holdings' revenue projections for 2025 and 2026?

The company projects revenue exceeding $45 million with $1.3 million net income for 2025, and revenue over $60 million with $5.0 million net income for 2026.

How much revenue growth did EFSH report in Q1 2025?

1847 Holdings reported 380% revenue growth in Q1 2025 compared to the previous year.

What strategic divestitures has EFSH completed recently?

1847 Holdings completed the sale of High Mountain Door & Trim Inc. for approximately $17 million and divested ICU Eyewear as part of its strategic initiatives.

When will EFSH begin trading on the OTCQB Market?

The company has submitted an application for OTCQB quotation which is under review. The trading commencement date will be announced upon approval.