Company: RILYN
Filing Date: 2025-03-07
Form Type: 8-K
Source: 0001213900-25-021827
Chunk: 0

Company: B. Riley Financial, Inc.
Filing Date: 2025-03-07
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01 Entry into a Material Definitive Agreement

As previously announced on March 3, 2025, B. Riley Financial, Inc., a
Delaware corporation (the “ Company” or “B.
Riley”) and BR Financial Holdings, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company
(“ BR Financial”), B. Riley Environmental Holdings, LLC, a Delaware limited
liability company and an indirect subsidiary of the Company (“B. Riley Environmental
Holdings”), BRF Investments, LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of the Company
(“B. Riley Investments”), ReVal Group, LLC, a Delaware limited liability
company and an indirect subsidiary of the Company (the “Member”), Atlantic
Coast Recycling, LLC, a Delaware limited liability company and an indirect subsidiary of the Company (“ Atlantic
Coast Recycling”), Atlantic Coast Recycling of Ocean County, LLC, a Delaware limited liability company and an indirect subsidiary
of the Company (“ Atlantic Coast Recycling of Ocean County” and, together
with Atlantic Coast Recycling, the “ Atlantic Companies”), entered into an
Membership Interest Purchase Agreement, dated as of March 1, 2025 (the “ MIPA”),
by and among Atlantic Coast Recycling Holdings, Inc., a Delaware corporation (“ Purchaser”),
and certain Seller Parties (defined therein), with respect to the sale of all of the issued and outstanding membership interests in each
of the Atlantic Companies (the “ Interests”) to the Purchaser. The closing
(the “ Closing”) of the transactions contemplated by the MIPA (the “ ReVal
Transaction”) occurred on March 3, 2025.

At the Closing, the Member sold the Interests to the Purchaser for
a purchase price of approximately $102.5 million, subject to certain adjustments and a holdback amount pending receipt of a certain third
party consent, resulting in cash proceeds of $68.6 million to the Company after adjustments for amounts allocated to non-controlling interests,
repayment of contingent consideration, transaction costs and other items directly attributable to the closing of the transaction. Of the
approximately $68.6 million of cash proceeds received by B. Riley, approximately $22.6 million was used to pay interest, fees, and principal
on B. Riley’s Oaktree credit facility. The principal balance of the Oaktree credit facility was reduced to a balance of approximately
$139 million on March 7, 2025. B