1847 Holdings finalizes purchase agreement, faces NYSE delisting

Published 07/04/2025, 22:28
1847 Holdings finalizes purchase agreement, faces NYSE delisting

1847 Holdings LLC (NYSE American: EFSH), a management consulting services firm, has concluded an amendment to its purchase agreement and is confronting delisting challenges from the NYSE American exchange, as per recent SEC filings. For investors tracking similar corporate developments, InvestingPro offers real-time alerts and comprehensive financial analysis tools to monitor company health and market status.

On Monday, the company announced that it had entered into Amendment No. 3 to the stock and membership interest purchase agreement originally signed on November 4, 2024. This amendment waived the working capital adjustment provision from the agreement related to the acquisition of CMD Companies, which was finalized on December 16, 2024, for an aggregate purchase price of $18.75 million. The amendment clarified that no adjustment to the purchase price was necessary at the time of closing and that certain financial statement provisions would not be breached in relation to the net working capital calculation.

Separately, on Sunday, April 3, 2025, 1847 Holdings received a notification from NYSE Regulation of the intent to begin proceedings to delist the company's common shares. The delisting is due to the low selling price of the shares, which is considered unsuitable for listing under Section 1003(f)(v) of the NYSE American Company Guide. Trading of the company's shares was suspended on April 3, 2025. The company plans to request a review of this delisting decision, with trading remaining suspended pending the outcome.

This news follows the company's recent expansion through the acquisition of the CMD Companies, a move aimed at growing 1847 Holdings' presence in the management consulting sector. The amendment to the purchase agreement and the potential delisting from NYSE American are significant developments for the company and its shareholders. The information provided is based on a press release statement. Investors can access detailed analysis of similar delisting risks and corporate actions through InvestingPro's advanced screening tools and expert insights.

In other recent news, 1847 Holdings LLC has made significant amendments to its operating agreement and equity incentive plan. The company has expanded its authorized common shares from 500 million to 2 billion, a move aimed at providing greater flexibility for future corporate needs. Additionally, the number of common shares reserved under the 1847 Holdings LLC 2023 Equity Incentive Plan has been increased to 5 million shares to further incentivize and compensate officers and employees. All proposals presented at the special shareholders' meeting were approved, reflecting a proactive approach to corporate governance.

In a separate development, 1847 Holdings LLC confirmed preliminary discussions regarding the potential sale of its subsidiary, CMD Inc., a manufacturer specializing in cabinetry, millwork, and doors. This follows an expression of interest from an unnamed third party, although the talks are still in early stages with no certainty of a transaction occurring. The company has stated that no further updates will be provided unless a definitive agreement is reached or legally required. These recent developments highlight 1847 Holdings LLC's strategic initiatives and ongoing efforts to align with shareholder interests.

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