24/7 Market News Snapshot 14 October, 2024 – B. RILEY FINANCIAL, INC. (NASDAQ:RILY)

October 14, 2024

DENVER, Colo., 14 October, 2024 (247marketnews.com) – (NASDAQ:RILY) are discussed in this article.
B. Riley Financial, Inc. is experiencing a notable upswing in pre-market trading, with its shares currently valued at $5.245, marking an impressive gain of approximately 19.48% from the last closing price of $4.390. This increase, accompanied by a robust trading volume of 1.43 million shares, suggests a surge in investor interest and confidence. The upward momentum may be attributed to favorable market conditions or positive developments within the company, prompting traders to closely observe critical resistance levels for potential profit-taking, while also tracking volume trends to ascertain the durability of this bullish outlook.

In conjunction with this optimistic trading activity, B. Riley Financial has revealed a significant strategic advancement in its business operations. The company has officially entered into a definitive agreement with funds managed by Oaktree Capital Management, L.P. to form Great American Holdings, LLC, a new entity focused on enhancing the Great American Group’s capabilities. This agreement will see a thorough internal restructuring of B. Riley, with the transfer of its Appraisal and Valuation Services, Retail, Wholesale & Industrial Solutions, and Real Estate Advisory segments to Great American NewCo.

The transaction is projected to deliver considerable financial advantages to B. Riley, including approximately $203 million in cash, Class B Preferred Units valued at around $183 million, and a 47% equity stake in the new holding company through Class A Common Units. This partnership, as highlighted by B. Riley’s Chairman and Co-CEO, Bryant Riley, is a strategic move designed to alleviate debt and foster reinvestment in core financial services, augmenting growth prospects. Oaktree’s leadership anticipates that this collaboration will strategically position both B. Riley and Great American Group for remarkable future growth, with the closing of the deal expected in the fourth quarter of 2024, pending regulatory approvals and customary closing conditions.

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