Goedeker’s Acquisition of Appliances Connection Stays on Track—Closes $5M Financing, Strengthening Working Capital to Acq...
26 March 2021 - 12:00AM
Business Wire
1847 Goedeker Inc. (NYSE American: GOED) (“Goedeker’s” or the
“Company”), a one-stop e-commerce destination for appliances and
furniture, announced today the closing of two 10% OID senior
secured promissory notes, each with four-year warrants to purchase
200,000 shares of the Company’s common stock at an exercise price
of $12.00, for an aggregate of $5 million in gross proceeds and
approximately $4.59 million in net proceeds.
“We are continuing to build on our orders and sales momentum
leading into our acquisition of Appliances Connection and remain on
target to complete the transaction in the second quarter. The
underlying trends that have driven our double and triple-digit
growth in recent months remain persistent, and we are in a great
position to capitalize on the growing opportunities,” stated Doug
Moore, CEO of Goedeker’s.
“In advance of the pending acquisition of Appliances Connection,
Goedeker’s chose to move quickly to buy more appliance inventory to
meet the continued rising demand through the online channel. While
product supply constraints in the industry remain ongoing, this
financing gives us the capital to further expand our inventory and
satisfy more customers in the near term,” continued Moore.
Albert Fouerti, President, Appliances Connection, stated, “We
continue to share our excitement and support for the combined
companies and look forward to working as one team. As we shared in
our most recent press release, record orders and consumer interest
at both companies is creating and will create a powerful force in
the consumer appliance business.”
Full details of the financing are available in an 8-K filed on
March 25, 2021.
About 1847 Goedeker Inc.
1847 Goedeker Inc. is an industry leading e-commerce destination
for appliances, furniture, and home goods. Since its founding in
1951, Goedekers has transformed from a local brick and mortar
operation serving the St. Louis metro area to a respected
nationwide omnichannel retailer that offers one-stop shopping for
national and global brands. While the Company maintains its St.
Louis showroom, over 95% of sales are placed through its website
(www.Goedekers.com).Goedekers provides
visitors an easy to navigate shopping experience and offers more
than 141,000 items organized by category and product features.
Learn more at www.Goedekers.com.
About Appliances Connection
Founded in 2000, Appliances Connection is one of the leading
retailers of household appliances with a 200,000 square foot
warehouse in Hamilton, NJ and a 23,000 square foot showroom in
Brooklyn, New York. Appliances Connection carries many household
name brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG,
and Samsung, and also carries many major luxury appliance brands
such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air,
Viking among others. Appliance Connection provides appliance
installation services and appliance removal services. In addition
to selling appliances, it also sells furniture, fitness equipment,
plumbing fixtures, televisions, outdoor appliances, and patio
furniture, as well as commercial appliances for builder and
business clients.
Forward Looking Statements
This press release contains “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
"will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on 1847 Goedeker
Inc.’s current expectations and are subject to inherent
uncertainties, risks and assumptions that are difficult to predict.
Further, certain forward-looking statements are based on
assumptions as to future events that may not prove to be accurate.
These and other risks and uncertainties are described more fully in
the section titled “Risk Factors” in the final prospectus related
to the public offering filed with the Securities and Exchange
Commission. Forward-looking statements contained in this
announcement are made as of this date, and 1847 Goedeker Inc.
undertakes no duty to update such information except as required
under applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210325005549/en/
Dave Gentry, CEO RedChip Companies Office: 1.800.RED.CHIP
(733.2447) Cell: 407.491.4498 dave@redchip.com
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