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  "documentTitle": "B. Riley Financial, Inc. (RILY)",
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  "authorName": "Wolfpack Research",
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  "presentationDate": "2023-02-14 00:00:00",
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  "notes": "The slide uses direct quotes from press releases and SEC filings to expose inconsistencies in how the transaction was described.",
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      "text": "B. Riley has acquired Targus in a transaction valued at approximately $250 million on an enterprise value basis, which represents a multiple of approximately 5.2x Adjusted EBITDA for the trailing twelve-month period ending June 2022. Targus generated revenues of approximately $415 million for the same trailing twelve-month period. Financing for the transaction included approximately $85.5 million of bank financing, and $114 million of seller financing and B. Riley bonds.",
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      "text": "Item 7.01. Regulation FD Disclosure. On October 18, 2022, the Company entered into a Securities Purchase Agreement (the \"Purchase Agreement\") with Targus Cayman Holdco Limited (\"Targus\"), the sellers identified therein (the \"Sellers\"), and the other parties thereto, pursuant to which the Company acquired from the Sellers on October 18, 2022 all of the issued and outstanding shares of Targus in a transaction with an enterprise value of approximately $250 million for consideration consisting of a combination of cash, 6.75% senior notes due 2024 and shares of common stock of the Company. On October 19, 2022, the Company and Targus jointly issued a press release announcing the transaction. A copy of that press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.",
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      "kind": "callout",
      "text": "How will this transaction be described in the 10-K? We don’t know, but we are interested to see which version of events is disclosed as they are entirely different, not simple differences in verbiage.",
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      "text": "RILY's (Non) Response to Our Report... If RILY would like to respond to our report, we and other investors have a few questions management can answer: Is RILY in full compliance with its Nomura and BRPAC credit agreements? Does RILY still have an outstanding $41 million loan to SRNE? Does XELA still owe $75 million, and does RILY believe it will be repaid the full outstanding amount? Why won't RILY disclose the details of its loan book to investors now that we have drawn attention to it? What does RILY have to hide? If RILY has violated the covenants of its Nomura and BRPAC Credit Agreements, what kind of recovery rate can Baby Bond holders expect? Is the dividend safe? If so, how exactly will the Q1 2023 dividend be funded?",
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      "kind": "paragraph",
      "text": "In its 8-K filing with the SEC, the company said its consideration consisted of \"a combination of cash, 6.75% senior notes due 2024 (i.e., Baby Bonds), and shares of common stock of the company.\"",
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      "kind": "paragraph",
      "text": "Conclusion: This is a firm that is constantly taking advantage of retail investors. Whether that means selling their wealth management clients their own toxic bonds, or by backing the dilutive issuance of something like a billion shares for a dying microcap like XELA after having sold shares of its stock to the public at highly inflated prices.",
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      "text": "In its press release, it said the transaction included \"$85.5 million of bank financing, $114 million of seller financing, and B. Riley Bonds.\"",
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      "text": "How will this transaction be described in the 10-K? We don't know, but we are interested to see which version of events is disclosed as they are entirely different, not simple differences in verbiage.",
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      "text": "B. Riley has acquired Targus in a transaction valued at approximately $250 million on an enterprise value basis, which represents a multiple of approximately 5.2x Adjusted EBITDA for the trailing twelve-month period ending June 2022. Targus generated revenues of approximately $415 million for the same trailing twelve-month period. Financing for the transaction included approximately $85.5 million of bank financing, and $114 million of seller financing and B. Riley bonds. — B. Riley Press Release",
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