1847 Holdings LLC EFSH shares are trading lower on Thursday premarket after the company announced that it will effect a 1-for-4 reverse split of its common shares.
1847's common shares will begin trading on a split-adjusted basis when the market opens on January 8, 2024.
The reverse split will reduce the number of outstanding shares of the company's common shares from approximately 3.43 million shares to approximately 0.86 million shares.
The reverse split will also reduce the company's float from approximately 3.40 million shares to approximately 0.85 million shares.
"We continue to execute on our strategy of acquiring undervalued, cash flow positive, lower-middle market businesses at attractive valuations," stated Ellery W. Roberts, CEO of 1847.
Last month, EFSH reported total revenue of $18.8 million for Q3 2023 compared to $14.5 million in Q3 2022, a 29.8% year-over-year increase.
"This strategic restructuring as part of the company's capitalization acknowledges that reality and better positions the company for our serial accretive acquisitions going forward," Roberts added.
Price Action: EFSH shares are trading lower by 9.79% to $0.4689 premarket on the last check Thursday.
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