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1847 Holdings LLC Announces Pricing of $5.0 Million Public Offering

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1847 Holdings LLC (EFSH) announces a public offering of securities for gross proceeds of $5.0 million, including 5,000,000 common shares and/or pre-funded warrants. The offering is priced at $1.00 per share or warrant, with the warrants exercisable at $0.01 per share, aiming to prevent beneficial ownership exceeding 4.99% or 9.99% of outstanding shares.
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The public offering of 1847 Holdings LLC indicates a strategic move to raise capital, which could be aimed at expanding operations, reducing debt, or funding new investments. The offering of common shares and pre-funded warrants at a fixed price of $1.00 per unit suggests a direct approach towards capital acquisition without the complexity of a variable pricing mechanism. The pre-funded warrants, exercisable at $0.01, provide an incentive for investment without immediately diluting the share base, as they convert to common shares only upon exercise.

Investors would need to consider the potential for dilution of their holdings, as the issuance of new shares increases the total share count. However, the cap on beneficial ownership could mitigate substantial dilution and over-concentration of voting power. The immediate impact on the stock price could be negative due to the dilutive effect, but the long-term value will depend on how effectively the company utilizes the raised funds. The key metrics to watch post-offering would be the company's return on invested capital (ROIC) and whether it can achieve growth rates that justify the dilution.

The lower-middle market segment, where 1847 Holdings operates, is characterized by its potential for growth and operational improvements. Companies in this segment often require capital for expansion or to streamline operations for better profitability. The success of such a public offering is indicative of investor confidence in the company's management and future growth prospects.

It's essential to analyze the competitive landscape within which 1847 Holdings operates. If the capital is deployed effectively, the company could gain a competitive edge. However, investors should be wary of the market's reception to the new securities, as an unfavorable response could affect the stock's liquidity and the company's market capitalization. Tracking the performance of the company against its stated objectives following the capital raise will provide insights into the efficacy of its growth strategy and capital allocation.

The 'reasonable best efforts' terminology used in the offering suggests that the placement agent is not obligated to purchase any unsold shares, which places the risk of an incomplete offering on the company. This type of arrangement is common in smaller or riskier offerings where the underwriter may be unwilling to take on the full risk of the offering. It's crucial for investors to understand the implications of this arrangement, as it could affect the company's ability to raise the desired funds.

Furthermore, the structure of the pre-funded warrants is designed to comply with securities regulations regarding ownership thresholds that trigger reporting requirements. The option for investors to choose a beneficial ownership cap of 4.99% or 9.99% provides flexibility and could attract investors seeking to avoid the regulatory scrutiny that comes with larger ownership stakes. The legal framework governing these securities will dictate the rights and obligations of the holders and the company, which is a critical aspect for investors to consider.

NEW YORK, NY / ACCESSWIRE / February 9, 2024 / 1847 Holdings LLC (NYSE American:EFSH) ("1847 Holdings" or the "Company"), 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 the pricing of its "reasonable best efforts" public offering of securities for gross proceeds of $5.0 million, prior to deducting placement agent fees and other offering expenses payable by the Company.

The public offering is comprised of 5,000,000 common shares and/or pre-funded warrants in lieu of shares, priced at a public offering price of $1.00 for one common share or pre-funded warrant. The pre-funded warrants are issuable to purchasers in lieu of common shares that would otherwise result in such purchaser's beneficial ownership exceeding 4.99% (or, at the election of the purchaser, 9.99%) of the Company's outstanding common shares, if any such purchaser so chooses. Each pre-funded warrant is exercisable at any time to purchase one common share at an exercise price of $0.01 per share. The closing of the public offering is expected to occur on or about February 13, 2024, subject to the satisfaction of customary closing conditions.

Spartan Capital Securities, LLC is acting as the sole placement agent in connection with the offering.

The Securities and Exchange Commission ("SEC") declared effective a registration statement on Form S-1 relating to these securities on February 9, 2024. A final prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov. The offering is being made only by means of a prospectus, copies of which may be obtained, when available, from: Spartan Capital Securities, LLC, 45 Broadway, New York, NY 10006, at (212) 293-0123.

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

About 1847 Holdings

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 former 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.

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



View the original press release on accesswire.com

1847 Holdings LLC announced a public offering of securities for gross proceeds of $5.0 million.

The offering includes 5,000,000 common shares and/or pre-funded warrants.

The common shares and pre-funded warrants are priced at $1.00 each.

The pre-funded warrants are exercisable at $0.01 per share.

Pre-funded warrants are included to prevent beneficial ownership exceeding 4.99% or 9.99% of outstanding shares.
1847 Holdings LLC

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Administrative Management and General Management Consulting Services
Professional, Scientific, and Technical Services
Professional, Scientific, and Technical Services, Administrative Management and General Management Consulting Services , Miscellaneous Commercial Services, Commercial Services

About EFSH

1847 holdings llc, through its subsidiaries, provides a range of products and services for agriculture, construction, lawn, and garden industries in north america. it operates through two segments, land management services, and retail and appliances. the land management services segment provides waste disposal and various agricultural services, such as manure spreading, land rolling, bin whipping, cleaning of bulk storage bins and silos, equipment rental, trucking, vacuuming, building erection, various shop, and other services to local agricultural and farming communities; and wholesales agricultural equipment and parts. the retail and appliances segment provides a range of appliance services, including sales, delivery/installation, in-home service and repair, extended warranties, and financing to homeowners, builders, and designers. the company also designs, builds, and installs custom cabinetry primarily for custom and semi-custom builders. 1847 partners llc serves as the manager of