1847 Holdings LLC (NASDAQ:EFSH) shares are trading lower by 37.5% to $0.70 during Monday's session after the company late Friday filed a prospectus for the potential sale of 1,394,052 common shares by selling shareholders. This includes 92,937 shares issuable upon warrant exercise and 1,301,115 shares convertible from subordinated promissory notes valued at $625,000, which can only be converted in case of a default event.
The company will not benefit from the sale proceeds of these common shares, except for funds received from the exercise of warrants. The warrants have no public market.
The selling shareholders may sell these shares through various means, including public or private transactions, potentially involving underwriters, broker-dealers or agents, who may receive compensation.
Should I Buy EFSH Stock?
By now you're likely curious about how to participate in the market for 1847 Holdings – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of 1847 Holdings, which is trading at $0.7 as of publishing time, $100 would buy you 142.86 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, EFSH has a 52-week high of $47.28 and a 52-week low of $0.69.