JFB Construction secures $43.9 million in private investment

LANTANA, Fla. - JFB Construction Holdings (NASDAQ:JFB), whose stock has surged over 50% in the past year despite recent volatility according to InvestingPro data, announced Friday it has entered into a securities purchase agreement with American Ventures LLC, Series XIV JFB for a private investment in public equity (PIPE) financing expected to generate approximately $43.9 million in gross proceeds.

The real estate development and construction company plans to use $12 million of the net proceeds to retire Class B Common Stock owned by CEO Joseph F. Basile III, with the remainder allocated for general corporate operating expenses. The financing comes at a crucial time, as InvestingPro data shows the company maintains a healthy current ratio of 4.96, though it reported negative EBITDA of $2.33 million in the last twelve months.

Under the agreement, JFB is selling 4,389,500 shares of Series C Convertible Preferred Stock at $10 per share, convertible into 8,068,933 shares of common stock at a conversion price of $5.44 per share. The transaction also includes two sets of warrants totaling over 16 million potential common shares.

The Common Warrants A are exercisable immediately at $5.75 per share, while Common Warrants B are 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 being sold have not been registered under the Securities Act of 1933 and were offered only to accredited investors. JFB has agreed to file registration statements with the SEC covering the resale of shares issuable upon conversion of the preferred stock and exercise of the warrants.

JFB Construction Holdings provides residential and commercial construction services across 36 U.S. states, specializing in multifamily communities, shopping centers, and commercial projects, according to the company’s press release statement. With a market capitalization of $50.5 million and trading at a price-to-book ratio of 5x, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value. InvestingPro subscribers have access to 8 additional key insights about JFB’s financial health and market position.

In other recent news, JFB Construction Holdings has announced the appointment of Bill Dyer as its new chief operating officer. This appointment was made effective on September 22, 2025, as per a statement released based on a filing with the Securities and Exchange Commission. Dyer brings a wealth of experience to the role, having accumulated over 30 years in the development and construction industry. His career includes notable roles in real estate development, civil engineering, and general contracting. Before joining JFB Construction Holdings, Dyer was a senior vice president at Pace Properties, Inc., a commercial real estate firm, from 2019 through 2025. His previous experience also includes owning Dyer Engineering, Inc. and serving as vice president of Phoenix Realty Advisors, Inc. This leadership change marks a significant development for JFB Construction Holdings as it continues to strengthen its executive team.

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