This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

National Holdings Corporation Completes Growth Capital Raise And Announces New Leadership

Stocks in this article: NHLD

NEW YORK, Jan. 25, 2013 /PRNewswire/ -- National Holdings Corporation (OTCBB: NHLD.OB), a full service investment banking company operating through its wholly-owned subsidiaries, announced today that it has closed on a $8.8 Million private offering of common stock to position the Company for the future by recapitalizing and providing significant growth capital to expand the Company's business. With this capital raise, the Company has completely recapitalized its balance sheet through the simultaneous repayment of approximately $2.8 Million in debt financing, the conversion of the balance of outstanding debt financing and all preferred shares into common stock and the exchange of substantially all outstanding warrants for common stock. The approximate $6 Million balance of the capital raise will be used to grow the Company's client, investment banking and asset management businesses and for working capital.

The $8.8 Million offering of the Corporation's common stock was at a purchase price of $.30 per share. No warrants were issued in the offering. Approximately $2.8 Million from the proceeds of the offering were used to repay the remainder of the Corporation's outstanding debt that was not converted in conjunction with the offering. As part of this transaction all of the Series C and D Preferred shares will be converted into common stock of the Corporation at $.50 per share pursuant to the original terms of such preferred shares. In addition, the holders of $5 Million in Notes convertible into Series E Preferred converted such debt into the Series E Preferred and immediately then converted such Series E Preferred into common stock of the Corporation also at $.50 per share also pursuant to the original terms of such convertible debt and Series E Preferred. As a result, no preferred shares of National Holdings Corporation will remain outstanding. As part of this transaction, substantially all of the holders of the Corporation's warrants have also agreed to exchange their warrants for common stock at a deemed value of the Corporation's common stock equal to $.30 per share.

The Company also announced that Mark D. Klein has been appointed CEO and Executive Co-Chairman of National Holdings, succeeding Mark Goldwasser who will become President and Vice Chairman of the Corporation and remain CEO of the Corporation's National Securities subsidiary. Robert Fagenson will continue to serve as Executive Co-Chairman and Leonard Sokolow will continue to serve as Vice Chairman.  

"We are extremely pleased to have raised $8.8 Million in private equity capital from a high quality group of investors to create one of the strongest balance sheets in our history," said Mr. Klein, CEO and Executive Co-Chairman. "These transactions, which will contribute almost $14 Million to our shareholders' equity, position National Holdings to best serve all of our clients, and to significantly and prudently grow our business."

"In addition to putting us in an extremely strong financial position, the offering provides capital to invest in our retail broker network and expand our investment banking activities to maintain our growth," said Robert Fagenson, Executive Co-Chairman. "We are also fortunate that Mark has accepted the position of CEO.  Mark is an experienced professional who has proven to be a strong figure on Wall Street and Main Street.  He has led substantial financial services companies in his nearly 30 year career earning the respect of individual and institutional clients and creating value for investors. Mark not only led us in this successful capital raise and material balance sheet restructuring, but has been instrumental in setting a broad vision and business strategy for National Holdings Corporation." 

"We are extremely fortunate to have such a dedicated team to drive our growth and position us for a successful 2013, and beyond," said Mark Goldwasser, President and Vice Chairman. "Mark, Robert, Lenny and I, together with the rest of our management team, are partners dedicated to serving our clients and achieving the full growth potential of National Holdings Corporation."

About National Holdings Corporation

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs