By Josh Beckerman
B. Riley Financial carved out B. Riley Securities via a transaction with shell entity Cascadia Investments.
B. Riley Securities is expected to trade on the OTC Pink market. It will independently report financial results, "which will provide stakeholders with enhanced transparency and the ability to independently value a pure-play investment bank focused on the small cap and middle markets," B. Riley Financial said.
B. Riley Financial will retain about 89% of B. Riley Securities shares, providing "upside potential as BRS capitalizes on an expected recovery in M&A and Capital Markets activity."
Shares of B. Riley Financial were recently down 2.7%, to $4.34. The stock has fallen about 6% this year and 78% over the past 52 weeks.
B. Riley Financial has pursued asset monetization as it contended with issues such as an investment in Franchise Group, a holding company that owns Vitamin Shoppe and Pet Supplies Plus. Franchise Group filed for bankruptcy in November.
In August, B. Riley Financial suspended its dividend and delayed its second-quarter Form 10-Q due to delays in finalizing valuations of certain loans and investments. The company sold a majority of appraisal- and valuations-unit Great American to Oaktree Capital and agreed to sell part of its traditional W-2 wealth-management business to Stifel Financial.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
March 11, 2025 15:07 ET (19:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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