Company: RILYN
Filing Date: 2025-03-14
Form Type: 8-K
Source: 0001213900-25-024189
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Company: B. Riley Financial, Inc.
Filing Date: 2025-03-14
Form: 8-K
Item: Item 7.01
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Item 7.01 Regulation FD Disclosure.

On March 10, 2025, B. Riley Financial, Inc. (the “ Company”)
completed a transaction (the “ Transaction”), pursuant to which, among other things, B. Riley Securities Holdings, LLC, the
immediate intermediate parent company of the Company’s broker-dealer subsidiary, B. Riley Securities, Inc. (“ BRS”),
converted into a Delaware corporation and is now known as B. Riley Securities Holdings, Inc. (“ BRS Holdings”) and formed a
merger subsidiary that merged with Cascadia Investments, Inc. (OTC: CDIV) (“ Cascadia”) as a result of which certain investors
in Cascadia became minority stockholders in BRS Holdings.

In connection with the Transaction, BRS Holdings granted
restricted stock awards in respect of BRS Holdings common stock (“ RSAs”) to certain members of management and employees, representing
in the aggregate 10% of the shares of BRS Holdings common stock outstanding after giving effect to the merger, and that are subject to
time-vesting requirements. Recipients of RSAs will be entitled to cash dividends and voting rights with respect to the RSAs even if such
shares are not vested, provided that such rights shall terminate as to any unvested RSAs immediately upon forfeiture of such unvested
RSAs. Subject to certain exceptions, including as described above with respect to the RSAs granted to Mr. Moore, the RSAs generally vest
in equal annual tranches over the four year period following the date of grant. In addition, BRS Holdings created a pool of shares of
its common stock, representing approximately 9.2% of the shares of BRS Holdings common stock after giving effect to the merger and the
issuance of the RSAs, available for the future issuance of grants of equity based awards to current and future BRS management and employees.

At the closing of the Transaction, BRS Holdings entered
into a stockholders agreement with BR Financial Holdings LLC (“ BRFH”), a wholly owned subsidiary of the Company, BRS, and
certain other stockholders of BRS Holdings. Pursuant to the stockholders agreement, the BRS Holdings board of directors will consist of
five members, of which four directors will be appointed by BRFH including, no later than 30 days from the date of the Transaction, two
directors independent of the Company and BRS Holdings, and one director will be appointed by the