Skip to main content

1847 Holdings Announces Notification of NYSE American Listing Deficiency

Previously announced reverse spit expected to cure deficiency

NEW YORK, NY / ACCESSWIRE / September 5, 2023 / 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, today announced that it had received a deficiency letter ("Letter") from NYSE American LLC ("NYSE American") on August 31, 2023 stating that the Company is not in compliance with the continued listing standards as set forth in Section 1003(f)(v) of the NYSE American Company Guide ("Company Guide").

The Letter stated that because the Company's common shares had been trading for a low price per share for a substantial period of time, which NYSE American determined to be a 30-trading day average of less than $0.20 per share. The Company was not in compliance with Section 1003(f)(v) of the Company Guide. The NYSE American staff determined that the Company's continued listing is predicated on it demonstrating sustained price improvement within a reasonable period of time or effecting a reverse stock split of its securities, which the staff determined to be until February 29, 2024. The Letter also noted that NYSE American may take an accelerated delisting action that would pre-empt the cure period in the event that the common stock trades at a level viewed to be abnormally low.

The Letter has no immediate effect on the listing or trading of the Company's common shares and the common shares will continue to trade on the NYSE American under the symbol "EFSH". The Company's receipt of the Letter does not affect the Company's business, operations or reporting requirements with the Securities and Exchange Commission.

As previously disclosed on September 1, 2023, through a press release, in order to resolve the deficiency the Company will effect a 1-for-25 reverse stock split ("reverse split") of its common shares that will become effective on September 11, 2023. The Company's common shares will continue to trade on NYSE American under the symbol "EFSH" and will begin trading on a split-adjusted basis when the market opens on September 11, 2203. The new CUSIP number for the common shares following the reverse split will be 28252B887.

The Company's board took the action to implement the reverse split only after it received written notification from the NYSE American on August 31, 2023. The Company is a limited liability company, and under Delaware Law and the Company's operating agreement, the board is authorized to effect a reverse stock split without shareholder approval or the need to make any filing in the state of Delaware. Out of an abundance of caution and what the Company believes to be in the best long-term interests of shareholders, the Board of Directors approved the reverse split on August 31, 2023, which it believes will allow the Company to regain compliance with the minimum bid price requirement.

Mr. Ellery W. Roberts, CEO of 1847, commented, "While we recognize the negative perception associated with a reverse split, each and every shareholder's pro rata percentage will remain unchanged. Moreover, we believe the reverse split will reduce our float and make our shares more attractive to a broader universe of investors. As I stated last week, we remain on track to achieve $90 million in sales in 2023, not including our recently announced definitive agreement to acquire a premier consumer products company with over $20 million in sales for 2022. We have successfully restructured our convertible notes to eliminate the potential equity dilution, and we continue to strengthen our balance sheet. Moreover, our cash flow is improving, and we expect to resume dividends and opportunistically repurchase stock in the future. I remain 100% committed to driving returns for shareholders and plan to purchase additional shares in the open market, subject to limitations within the Company's insider trading policy and applicable law, to further illustrate my extreme confidence in the outlook for the business."

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

SOURCE: 1847 Holdings LLC



View source version on accesswire.com:
https://www.accesswire.com/780307/1847-holdings-announces-notification-of-nyse-american-listing-deficiency

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.