On January 24, 1847 Holdings Announced An Offering Of Up To 2,673,797 Common Shares At A Price Of $1.87 Per Share
Portfolio Pulse from Benzinga Newsdesk
1847 Holdings (EFSH) is offering up to 2,673,797 common shares at $1.87 each, the closing price on January 19, 2024. They also offer pre-funded warrants as an alternative to shares for purchasers who would exceed ownership limits. The warrants are exercisable for one common share at a nominal price and are immediately exercisable. EFSH does not plan to list the warrants and expects no market development for them. The offering is expected to close within two business days without a minimum share or proceeds requirement. Spartan Capital Securities, LLC is engaged as the placement agent on a best-efforts basis without a minimum sale requirement.

January 25, 2024 | 4:02 pm
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NEUTRAL IMPACT
1847 Holdings is offering additional common shares and pre-funded warrants, which may dilute current shareholders but provide capital for the company. The offering price is set at the recent closing price, indicating a neutral stance on current valuation.
The offering of additional shares typically leads to dilution of existing shares, which can have a negative impact on the stock price. However, since the offering is priced at the recent closing price, it suggests that the company believes the stock is fairly valued, which may mitigate any negative impact. The lack of a minimum proceeds requirement and the immediate closing of the offering suggest urgency or a need for quick capital, which investors may view with caution. The introduction of pre-funded warrants provides an alternative for investors to participate without immediately impacting the share count, which could be seen as a positive. Overall, the impact is neutral as the benefits of capital raising may offset the potential dilution.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100