1847 Reports 59.2% Increase in Revenue to $15.1 Million for the Fourth Quarter of 2023 - Seite 2

2023 Operational Achievements and Subsequent Events

• Received a non-binding LOI from a potential strategic acquiror relating to the potential acquisition of all or substantially all of the assets of the Company's subsidiary, 1847 Cabinets Inc. for a purchase price of up to $27 million
• Announced the execution of a non-binding LOI to acquire a large, established millwork, cabinetry and door manufacturer based in Las Vegas, NV with revenues of $28.6 million, with a purchase price of $16.75 million which represents approximately 3.2x 2023 EBITDA
• Announced Wolo Manufacturing subsidiary achieved record 40% year-over-year revenue growth in the first two months of 2024
• Announced ICU Eyewear subsidiary diversified manufacturing to reduce production costs and fortify supply chain
• Announced ICU Eyewear subsidiary's strategic expansion of partnerships, adding 300 new locations with leading US retailer
• Engaged Spartan Capital to pursue spinoff or strategic transaction for 1847 Cabinets Inc.
• Completed refinancing and upsizing of $15 million revolving credit facility for ICU Eyewear subsidiary
• Expanded Wolo Manufacturing Corp subsidiary into India through supply chain diversification program
• Restructured promissory notes to non-dilutive debt instruments

"We have achieved several significant milestones throughout 2023 and the beginning of 2024. At this time, we believe that the true intrinsic value of our business has yet to be fully realized by the public market. Consequently, we are actively exploring various strategic avenues, including subsidiary spin-offs, aimed at maximizing value for our shareholders. Towards this end, we have engaged Spartan Capital to pursue a spin-off or strategic transaction for 1847 Cabinets Inc. Through a spin-off, our shareholders would retain their current equity in 1847 while also receiving a pro-rata share of 1847 Cabinets Inc. Importantly, 1847 Cabinets Inc. has consistently demonstrated revenue growth alongside improved profitability, making it an opportune moment for such a strategic move."

"Most recently, we have received a non-binding LOI from a prospective strategic acquirer expressing interest in acquiring all or substantially all of the assets of 1847 Cabinets Inc. for a purchase price of up to $27 million. Our portfolio comprises outstanding businesses, each possessing considerable value far exceeding our current market capitalization. Looking ahead to 2024, we anticipate sustaining robust revenue growth, which should substantially bolster our profitability as we capitalize on our fixed costs and benefit from economies of scale," concluded Mr. Roberts.