B. Riley Financial Announces Carve Out Transaction with B. Riley Securities

Core Insights - B. Riley Financial has merged its investment banking subsidiary, B. Riley Securities (BRS), with Cascadia Investments, allowing Cascadia investors to become minority shareholders in BRS [1][2] - BRS will operate under a new governance structure and will be quoted on the OTC Pink market under the ticker "BRLY," enhancing transparency and independent valuation [2][6] - The firm has a strong track record, having led over 250 capital markets transactions and raised more than $115 billion in debt and equity since acquiring FBR in 2017 [3] Company Structure and Ownership - Post-transaction, B. Riley Financial retains approximately 89% ownership of BRS, with the remaining shares held by BRS employees and certain existing Cascadia shareholders [5] - BRS will have its own board of directors, with four members appointed by B. Riley Financial, including two independent directors [6] Leadership and Strategy - The leadership team of BRS, led by Andy Moore and Jimmy Baker, aims to focus on serving the middle market with capital markets, research, and M&A advisory services [4] - The company is positioned to capitalize on an expected recovery in M&A and capital markets activity, with a debt-free balance sheet and a commitment to client service [4] Financial Performance - BRS has historically delivered steady EBITDA and strong cash flow, with expectations to return to and exceed previous levels of growth and profitability as a separate entity [4]