1847 Holdings Announces Plans for Up To $25 Million Capital Raise

NEW YORK, Jan. 11, 2021 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTCQB: EFSH) (the “Company” or “1847 Holdings”), a publicly traded, diversified acquisition holding company that leverages its management expertise to acquire lower-middle market businesses at attractive valuations in industries with unique characteristics and defensible market positions, today announced that it plans to launch a capital raising effort under Regulation D, Rule 506(c) of the Securities Act. The targeted amount of the 14% Series B Convertible Preferred Share capital raise is $25 million. The use of proceeds for the offering will be primarily for working capital and future acquisitions.

Recently, on July 31, 2020, the Company successfully spun-off into an IPO one of its operating subsidiaries, 1847 Goedeker Inc. (NYSE:GOED), achieving a gross multiple on investment of 42x in sixteen months. 1847 Holdings’ current operating subsidiaries include Neese, an established agricultural services company, Asien’s Appliances, a leading Bay Area appliance retailer, and Kyle’s Custom Wood Shop, Inc., a custom cabinet manufacturer servicing the fast-growing economy of Boise, Idaho. The Company is poised for rapid growth as it continues to execute on its strategy of acquiring lower-middle market businesses at attractive valuations.

Ellery W. Roberts, CEO of 1847 Holdings, commented, “This capital raise is the next logical step for our company as it will provide sufficient capital to continue to build on our successes of 2020, which included the IPO of 1847 Goedeker. The Goedeker’s IPO demonstrated the economic power of our opportunistic business model. We acquired Goedeker’s for approximately $7 million, investing $714,000 for 54% of the company on a fully diluted basis. Today, 1847 Goedeker Inc. is valued at approximately $50 million. Shareholders of 1847 Holdings received 2.6 million shares of GOED, in the aggregate, through a share dividend. I expect 2021 to be another marquee year for 1847 Holdings, as we focus on growing the revenue and earnings of our existing operating subsidiaries and acquiring additional operating businesses as either add-ons or new platform subsidiaries.”

Mr. Roberts added, “We recently closed an offering of approximately $5 million to hedge funds, family offices and other institutional investors. Now we plan to offer an almost identical security to the public, giving everyday investors the opportunity to invest in a security normally available only to institutional investors.”

Interested parties should contact Dave Gentry, the CEO of Red Chip Companies, the Company’s investor relations firm, using the contact details at the end of this press release.

About 1847 Holdings LLC

1847 Holdings LLC (OTCQB: 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’s 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 can consistently acquire “solid” businesses for reasonable multiples of cash flow and then deploys resources to strengthen the infrastructure and systems to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at considerably higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847’s ability to pay regular and special dividends to shareholders.

Important Notice Regarding the Offering

This press release does not constitute an offer to sell nor a solicitation of an offer to purchase any securities in any jurisdiction in which such an offer or solicitation is not authorized and does not constitute an offer within any jurisdiction to any person to whom such offer would be unlawful. Offers and sales of securities will only be made to accredited investors under a private placement memorandum and other definitive documentation and all accredited investors must be verified in accordance with SEC rules. Further, the securities being offered by the Company have not been registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction and may not be offered or sold absent registration or an applicable exemption from the registration requirements.

Investing in private placements involves a high degree of risk. Securities sold through private placements are typically not publicly traded and, therefore, are less liquid. Additionally, investors receive restricted shares that are subject to holding period requirements. Companies seeking private placement investments tend to be in earlier stages of development and have not yet been fully tested in the public marketplace. Investing in private placements requires a tolerance for high risk, low liquidity, and a long-term commitment. Investors must be able to afford to lose their entire investment. Such investment products are not FDIC insured, may lose value, and have no bank guarantee.

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, considering 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:

Dave Gentry, CEO RedChip Companies Office: 1.800.RED.CHIP (733.2447) Cell: 407.491.4498 [email protected]