National Holdings +38% Enters Definitive Agreement with Leading Biopharmaceutical Company

Destiny A. Lopez  |

National Holdings (NHLD), a financial services provider, has seen its stock soar today following the announcement of its latest development. Up 38% today, the company has entered into a definitive agreement with Fortress Biotech (FBIO), a biopharmaceutical company.

According to National Holding’s official website, Fortress, through its wholly owned subsidiary, FBIO Acquisition, Inc. will offer to purchase up to 100% of the shares of the company at $3.25 per share in cash. "Management and the Board of NHLD are extremely excited about this transaction,” said Robert Fagenson, CEO and Chairman of National Holdings. “We believe we have provided our shareholders with two compelling options moving forward. For those who are interested in liquidating their position, we have found a buyer at a significant premium to our current share price. For those shareholders who want to continue with the Company and share the Fortress vision for NHLD, we intend to distribute a 5 year warrant at the same price as the tender offer, which we believe provides a very attractive opportunity to participate in the future of NHLD.”

Since 1947, National Holdings has provided a wide variety of financial services. Through its subsidiaries, National Securities Corporation, vFinance Investments, Inc., National Asset Management, Inc., and National Insurance Corporation, the company offers, among others, the following services:

  • retail brokerage services
  • investment banking services
  • corporate finance services
  • investment products and services
  • tax preparation services
  • small business accounting services
  • licensed mortgage brokerage services

Headquartered in New York, the company was previously known as Olympic Cascade Financial. The company underwent a name change in 2006.

This is not the only major development for the company to be announced in recent months. In February, the company revealed that its broker-dealer subsidiary, National Securities Corporation, had participated in a $100 million and $150 million transaction in the purchase of Lyft shares. Lyft is one of the fastest growing ride sharing platforms with service in over 150 cities. “This trade marks a key milestone in our efforts to develop our private share trading operations, which we expect will be a key contributor to our overall business going forward,” said Mark Goldwasser, President of National Holdings and CEO of National Securities. “Being able to execute such a large transaction for one of the world’s most well-known and highly sophisticated investors is a testament to the strength of the National platform.”

National Holdings appears to making solid progress, so far, in 2016. With two large transactions under its belt, and a landmark agreement in the works, the company is positioned to continue its nearly 70 year legacy in the finance industry.

"Everyone at NHLD believes in the great potential of our Company and we believe this transformational deal will create an expanded platform that will lead to more corporate advisory business, institutional brokerage and enhance National's overall reputation as a well-respected and valued corporate advisor,” said Fagenson. “Finally, the depth of the FBIO team's expertise in life sciences and biotech should expand our already strong healthcare banking franchise. We look forward to working with the FBIO team to make NHLD a leading financial services business, with a top tier biotech/life sciences franchise."

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Companies

Symbol Name Price Change % Volume
FBIO Fortress Biotech Inc. 1.30 0.02 1.56 170,858 Trade
NHLD National Holdings Corporation 2.71 0.00 0.00 90 Trade

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