Business
MORGAN GROUP HOLDING CO. ANNOUNCES PRIVATE PLACEMENT OF 1 MILLION SHARES OF ITS COMMON STOCK TO THE LGL GROUP, INC.
MORGAN GROUP HOLDING CO. ANNOUNCES PRIVATE PLACEMENT OF 1 MILLION SHARES OF ITS COMMON STOCK TO THE LGL GROUP, INC..
About this update from Morgan Group Holding Co.
[{"type":"text","content":"RYE, N.Y. - December 31, 2024. Morgan Group Holding Co. (“MGHL” or the “Company,” OTC Pink: MGHL) is pleased to announce that it intends to complete a private placement of 1 million shares of its Common Stock for $2.27/share to The LGL Group, Inc. (“LGL Group,” NYSE American: LGL) (the “Offering”). LGL Group is a holding company, incorporated in Delaware, engaged in services, merchant investment and manufacturing business activities. The Offering is expected to close in or about 30 days, subject to a 30-day “go shop” period, and satisfaction of all relevant regulatory requirements. MGHL is the parent company of G.research, LLC, a registered broker-dealer and FINRA member. Subsequent to the Offering, MGHL will have 1,600,090 shares of Common Stock outstanding.The Board of Directors of MGHL believes that this capital infusion will be in the best interests of the Company and all of its shareholders. The capital enables existing debt to be extinguished, and provides a foundation for the strategic growth of the G.research business, including M&A and partnerships. The investment by LGL Group also is expected to provide synergies, as LGL Group understands the business of MGHL, and has available cash on its balance sheet.The Offering represents an unsolicited bid by LGL Group, and provides for a 30-day “go shop” period, although MGHL is not aware of any other bids at this time.The purchase price of $2.27/share represents a 20% premium to the current net asset value (“NAV”) of G.research, and an approximate 300% premium to the MGHL trading price at the time these discussions began.The Offering is subject to a true-up, to be based on the final audited 2024 NAV of G.research, and a collar, with a maximum purchase price of $3.00/share, and a minimum of $1.98/share.The current management team of G.research will remain in place subsequent to the closing of the Offering.About Morgan Group Holding Co.Morgan Group Holding Co. was incorporated in November 2001. After the consummation of the Merger with G.research , LLC (“G.research”) in October 2019, we wholly own and operate G.research, an institutional research and securities brokerage business. G.research is a broker-dealer registered under the Securities Exchange Act of 1934, as amended, and is a member of FINRA. Our primary source of revenue is G.research’s securities brokerage bus...