1847 Holdings LLC ("1847" or the "Company") (NYSE:EFSH), a holding company specializing in identifying over-looked, deep value investment opportunities in middle market businesses, filed a Request for Withdrawal with the SEC on March 22, 2024 relating to withdrawal of the Company's Registration Statement on Form S-3, filed with the Commission on February 1, 2023.
The registration statement, which covered shares issuable upon the exercise of a warrant that was declared as a dividend, is no longer needed because those shares may now be issued under an exemption from the registration requirements of the Securities Act. The Company confirms that no shares have been sold pursuant to the Registration Statement.
Ellery Roberts, CEO of 1847 stated, "It is important to make sure our shareholders understand that we are not actively raising capital, nor are we intending to issue shares this time. In our view, leaving an open registration statement conveys the wrong message to shareholders."
Mr. Roberts continued, "We do not believe our current market capitalization accurately reflects the true value of our operating company portfolio, or the incremental value of the Company's public listing. We've made significant strides in building value within our portfolio, including the recent announcements regarding:
ICU Eyewear: We recently expanded our relationship with a national retail partner, expanding into an additional 300 locations retail locations across the US. As a result, our growth outlook for this business is well above our industry peer group for the foreseeable future. We also made significant progress optimizing our manufacturing capabilities and expect to improve margins by upwards of 12% in 2024. These two developments alone are expected to dramatically improve our cash flows in ICU Eyewear in 2024 and beyond.
Signature Home Craft: We recently engaged Spartan Capital to help evaluate our ability to spin off our rebranded cabinet business into its own independently listed company. With the existing scale and profitability profile, we believe our cabinet operations have the growth potential to create lasting shareholder value as a standalone business. We view this as a top priority for execution in 2024.
Wolo Manufacturing: We recently executed a working capital revolving line of credit facility for $750,000 to support the operations of Wolo. With this capital we are quickly turning our focus to driving additional revenue growth using non-dilutive capital to enhance shareholder value.
Roberts continued, "We believe that as the public markets better appreciates the impact of our recent initiatives, we will see these actions reflected in a higher valuation for 1847 Holdings shareholders. We have enjoyed a strong track record opportunistically acquiring small companies, strengthening their operations, and unlocking shareholder value through either a sale or IPO at higher valuations."
"We expect to achieve a number of milestones in the coming months that will demonstrate our continued ability to execute this growth strategy. This success has attracted attention from industry leaders resulting in unsolicited Indications of Interest for more than one of our subsidiaries," concluded Mr. Roberts.