Company: RILYN
Filing Date: 2025-07-03
Form Type: 8-K
Source: 0001213900-25-061210
Chunk: 0

Company: B. Riley Financial, Inc.
Filing Date: 2025-07-03
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement

B. Riley Financial, Inc.,
a Delaware corporation (the “ Company” or “ B. Riley”), B. Riley Advisory Holdings, LLC, a Delaware limited liability
company and an indirect wholly owned subsidiary of the Company (the “ GR Seller”), and B. Riley Advisory US, Inc., a Delaware
corporation and an indirect wholly owned subsidiary of the Company (the “ Farber Seller” and, together with the GR Seller,
the “ Sellers”) entered into an equity purchase agreement, dated June 27, 2025 (the “ Equity Purchase Agreement”),
with Gallop U. S. Acquireco Inc., a Delaware corporation (the “ GR Buyer”), and 1001243443 Ontario Inc., an Ontario corporation
(the “ Farber Buyer” and, together with the GR Buyer, the “ Buyers”). The closing (the “ Closing”) of
the transactions contemplated by the Equity Purchase Agreement (the “ Transactions”) occurred on June 27, 2025.

Pursuant to the Equity
Purchase Agreement, the GR Seller sold all of the membership interests of its wholly owned subsidiary, GlassRatner Advisory &
Capital Group, LLC (d. b. a. B. Riley Advisory Services), a Delaware limited liability company (“ GlassRatner”), to the GR
Buyer, and the Farber Seller sold all of the shares of its wholly owned subsidiary, B. Riley Farber Advisory Inc., an Ontario
corporation (“ Farber”), to the Farber Buyer. The aggregate purchase price paid by the Buyers for the interests of
GlassRatner and shares of Farber was $117.8 million in immediately available funds. The amount of the purchase price paid at the
Closing was based upon estimates of the amount of cash, indebtedness, transaction expenses and working capital of GlassRatner and
Farber at the Closing, with such amounts to be adjusted based on a final closing statement to be prepared and delivered by Buyers
within 180 days following the date of the Closing. In connection with the Closing, B. Riley Corporate Services, Inc., a Delaware
corporation and indirect wholly owned subsidiary of the Company, entered into a Transition Services Agreement with the BR Financial
Holdings, LLC and the Farber Buyer pursuant to which it agreed to provide certain services for up to a 6-month period following the
Closing, subject to a 3-month extension in certain circumstances.

The foregoing summary of