NEW YORK, Nov. 10, 2020 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTCQB: EFSH), 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 Leonite’s second investment in 1847 Holdings. The use of proceeds for the round are primarily for the previously disclosed acquisition of Kyle’s Custom Wood Shop, Inc. (“Kyle’s”), 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 Kyle’s, a high-quality small business in the extremely compelling market of Boise, Idaho.”
Ken Yuan, CEO of Kyle’s, stated, “With strong positive cash flow, 30% operating margins, and a 7.1% CAGR on revenue over the past three years, Kyle’s 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 Kyle’s acquisition. Kyle’s is a great addition to our portfolio, which includes Neese, an established agricultural services company and Asien’s 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 NYSE 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 (OTCQB: 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.
