The $5 million dollar acquisition financing represents Leonites second investment in 1847 Holdings
NEW YORK, Nov. 10, 2020 (GLOBE NEWSWIRE) -- 1847 Holdings LLC ( EFSH) (the Company), today announced the second and final close of its previously announced $5 million preferred financing round. Leonite Capital led the round with a $2.4 million investment. This marks Leonites second investment in 1847 Holdings. The use of proceeds for the round are primarily for the previously disclosed acquisition of Kyles Custom Wood Shop, Inc. (Kyles), associated closing costs, and general working capital.
We are extremely impressed with the business that Ellery has built, said Avi Geller, CIO of Leonite Capital. We are proud to continue to support him and the 1847 team in the acquisition of Kyles, a high-quality small business in the extremely compelling market of Boise, Idaho.
Ken Yuan, CEO of Kyles, stated, With strong positive cash flow, 30% operating margins, and a 7.1% CAGR on revenue over the past three years, Kyles has a strong foundation to build upon. It also has a clean capital structure with no debt, affording us substantial flexibility as we work to unlock value creation through participation in opportunities previously untouched by this regional operation.
"We are very fortunate to have the continued support from our investment partners, commented Ellery W. Roberts, CEO of 1847 Holdings. I also want to thank our legal team, Lou Bevilacqua at Bevilacqua PLLC and Anthony Panek and Ed Weaver at Fabian VanCott, for their support on this transaction and the Kyles acquisition. Kyles is a great addition to our portfolio, which includes Neese, an established agricultural services company and Asiens Appliances, a leading Bay Area appliance retailer. I look forward to helping our team replicate the success we saw this year with 1847 Goedeker, which was a huge win for us and our shareholders. After the successful IPO of 1847 Goedeker on the American in July 2020, we followed through on our commitment to share our success with our shareholders by completing a special share dividend of more than 2.6 million shares in October.
About Leonite Capital LLC
Leonite Capital is a New York based investment firm. Leonite and its affiliates have extensive holdings in real estate (multifamily, skilled nursing, mixed use, parking), venture capital, private equity (both direct and managed portfolios), public equities (with a focus on small-cap and micro-cap public companies), alternative lending, and hedge funds.
About 1847 Holdings LLC
1847 Holdings LLC ( EFSH) is a publicly traded partnership that combines the most attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. 1847 Holdings seeks to generate returns for shareholders in the future through consistent, annual distributions of operating subsidiary income and capital appreciation resulting from the timely sale of operating subsidiaries.
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.
Ellery W. Roberts, Founder & CEO
1847 Holdings LLC
Dave Gentry, CEO
Office: 1.800.RED.CHIP (733.2447)