B. Riley Financial announced that a formerly wholly-owned subsidiary of the Company has merged with Cascadia Investments, Inc., a shell entity, as a result of which certain investors in Cascadia became minority stockholders of BRF's investment banking subsidiary, B. Riley Securities ("BRS").

As part of the tax-free transaction, BRS is implementing its own operating and governance structure, and its common stock will now be quoted on the OTC Pink market under the ticker symbol "BRLY." BRS will independently report financial results, which will provide stakeholders with enhanced transparency and the ability to independently value a pure-play investment bank focused on the small cap and middle markets.

Since acquiring FBR in 2017, BRS has led more than 250 capital markets transactions, raised in excess of $115 billion in debt and equity for clients, and advised on M&A and restructuring transactions totaling more than $33 billion in aggregate value. The firm, which will be led by Andy Moore, Chairman and Co-Chief Executive Officer, and Jimmy Baker, Co-Chief Executive Officer, will be debt free and leverage the same strong leadership team that has guided the business for nearly two decades.

Bryant Riley, Chairman and Co-Chief Executive Officer of BRF, commented: "BRS has been the foundation of our firm's success ever since we started a smaller broker dealer focused on small cap companies in 1997. Through this transaction, we are enabling the leadership team of BRS to return to those roots, operate separately and execute a distinct growth strategy. As we demonstrated at our 2023 Investor Day, BRS has historically delivered steady EBITDA and strong cash flow, and we expect that as a separate entity, the firm will be able to return to and eventually exceed those levels of growth and profitability. Through BRF's 89% ownership stake, BRF shareholders will retain important upside potential as BRS capitalizes on an expected recovery in M&A and Capital Markets activity."

Moore and Baker added: "We are extremely enthusiastic about how this transaction repositions our firm and what it means for our ability to serve our clients. With a well-capitalized balance sheet, no debt and an exceptional team, BRS is purpose-built to serve the middle market with unmatched capabilities across Capital Markets, Research and M&A Advisory. We will stay true to our heritage and relentlessly focus on executing on behalf of our clients. We look forward to embarking on this next chapter and delivering for all stakeholders."