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LANTANA, Fla. - JFB Construction Holdings (NASDAQ:JFB), whose stock has surged over 297% year-to-date and is currently trading near its 52-week high, announced Thursday it has closed a private investment in public equity (PIPE) financing that raised approximately $43.9 million in gross proceeds from a single investor, American Ventures LLC, Series XIV JFB. According to InvestingPro analysis, the company’s shares appear overvalued at current levels.
The real estate development and construction company, which maintains a healthy current ratio of 4.96 and holds more cash than debt on its balance sheet, has allocated $12 million of the net proceeds to retire Class B Common Stock owned by Chief Executive Officer Joseph F. Basile III under a Share Redemption Agreement. The remainder will fund general corporate operating expenses.
Under the securities purchase agreement, JFB sold 4,389,500 shares of Series C Convertible Preferred Stock at a stated value of $10 per share, convertible into 8,068,933 shares of common stock at a conversion price of $5.44 per share. The transaction also included two sets of warrants totaling over 16 million potential common shares.
The first set of warrants is exercisable immediately at $5.75 per share, while the second set is exercisable at $6.25 per share. Both warrant types expire three years from issuance.
Dominari Securities LLC served as the exclusive placement agent for the financing. The securities sold in this private placement have not been registered under the Securities Act of 1933 and were offered only to accredited investors.
JFB Construction Holdings provides residential and commercial construction and development services across 36 U.S. states, according to the company’s press release statement. With annual revenue of $24.63 million, the company is currently not profitable, reporting negative earnings per share of $0.28 over the last twelve months. InvestingPro subscribers can access 15 additional key insights about JFB’s financial health and market position.
In other recent news, JFB Construction Holdings has announced a private investment deal expected to bring in approximately $43.9 million in gross proceeds. The company has entered into a securities purchase agreement with American Ventures LLC, Series XIV JFB, for this private investment in public equity (PIPE) financing. JFB Construction plans to allocate $12 million of the net proceeds to retire Class B Common Stock owned by CEO Joseph F. Basile III, with the remainder set aside for general corporate operating expenses. In a separate development, JFB Construction Holdings has appointed Bill Dyer as the new chief operating officer. Dyer, who brings over 30 years of experience in the development and construction industry, will assume his role effective September 22, 2025. His previous roles include senior vice president at Pace Properties, Inc., and owner of Dyer Engineering, Inc. These recent developments reflect significant strategic and leadership changes within JFB Construction Holdings.
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