Siebert Financial Corp. Executes Letter of Intent with StockCross Financial Services
May 08 2017 - 10:03AM
Business Wire
Siebert Financial Corp. (NASDAQ:SIEB) today announced the
execution of a non-binding letter of intent with its affiliate,
StockCross Financial Services, Inc., to acquire approximately $4
billion in customer assets of its retail securities business and
the transfer of its seasoned, experienced nationwide sales force.
Upon completion of the transaction, Siebert Financial will increase
its total customer assets to over $11 billion with 11 retail
branches nationwide.
Gloria E. Gebbia, majority shareholder and board member of
Siebert Financial said, “The addition of these financial and other
assets from StockCross demonstrate our commitment to growth and
allow our firm to continue its revamping for the realization of
certain economies of scale, with the aim of increasing revenue,
reducing costs and being profitable.”
Siebert Financial’s principal activity is providing online and
traditional discount brokerage and related services to retail
investors through Muriel Siebert & Co., Inc., its
broker-dealer, and as a registered investment advisor through its
Siebert Investment Advisors business unit.
Gloria Gebbia added, “The addition of these key assets will
broaden our efforts at Siebert Financial to serve our client
financial needs nationally, while engaging our relationships more
deeply to help both new and existing clients meet their wealth
management objectives.”
Gloria Gebbia and her family are the majority owners of
StockCross, a broker-dealer member of FINRA with offices across the
United States.
Under the terms of the LOI, the transaction is subject to
satisfying regulatory requirements as a closing condition.
Under the proposed arrangement, Siebert Financial will exchange
a number of its common shares as determined by an outside party,
Manorhaven Capital, LLC, according to a fairness opinion. The
shares to be issued for the purchase will be dilutive to all
shareholders, including the current majority shareholders, who own
92% of Siebert Financial stock.
The transaction, which is slated to close in the second half of
2017, is subject to regulatory approval.
The StockCross sales force includes approximately 40 registered
representatives and support staff located in branch offices in
Beverly Hills, CA; Calabasas, CA; Seal Beach, CA; Philadelphia, PA;
Dallas, TX and Houston, TX.
The Gebbia family has been successfully involved with financial
services companies since the early 1970's and during such time they
built a broker-dealer into a national brand, which they sold to
Toronto Dominion Bank in 1997. Gloria Gebbia is also the President
of the Associates for Breast and Prostate Cancer Studies which
raises funds for the John Wayne Cancer Institute. Through Gloria
Gebbia’s leadership since 1998 over $15 million has been raised for
cancer research studies.
About Siebert Financial Corp.
Siebert Financial is a holding company that conducts its retail
discount brokerage business through its wholly-owned subsidiary,
Muriel Siebert & Co., Inc. The firm became a member of the NYSE
in 1967, when Ms. Siebert became the first woman to own a seat on
the Exchange. In addition, in 2014 the Company began business as a
registered investment advisor through a wholly-owned subsidiary,
Siebert Investment Advisors, Inc. Siebert Financial is based in New
York City with additional retail branches in Boca Raton, FL and
Jersey City, NJ. www.siebertnet.com
Cautionary note regarding forward-looking statements
Statements in this press release that are not statements of
historical or current fact constitute “forward looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward looking statements involve risks and
uncertainties and known and unknown factors that could cause the
actual results of the Siebert Financial Corp. (the “Company”) to be
materially different from historical results or from any future
results expressed or implied by such forward looking statements,
including without limitation: changes in general economic and
market conditions; changes and prospects for changes in interest
rates; fluctuations in volume and prices of securities; changes in
demand for brokerage services; competition within and without the
brokerage business, including the offer of broader services;
competition from electronic discount brokerage firms offering
greater discounts on commissions than the Company; the prevalence
of a flat fee environment; limited trading opportunities; the
method of placing trades by the Company’s customers; computer and
telephone system failures; the level of spending by the Company on
advertising and promotion; trading errors and the possibility of
losses from customer non-payment of amounts due; other increases in
expenses and changes in net capital or other regulatory
requirements. As a result of these and other factors, the Company
may experience material fluctuations in its operating results on a
quarterly or annual basis, which could materially and adversely
affect its business, financial condition, operating results, and
stock price, as well as other risks detailed in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
Accordingly, investors are cautioned not to place undue reliance on
any such "forward-looking statements." The Company undertakes no
obligation to update the information contained herein or to
publicly announce the result of any revisions to such
“forward-looking statements” to reflect future events or
developments. An investment in the Company involves various risks,
including those mentioned above and those, which are detailed from
time to time in the Company’s SEC filings, copies of which may be
obtained from the Company or through the SEC’s website.
Notice to Investors
This communication is provided for informational purposes only
and is neither an offer to sell nor a solicitation of an offer to
buy any securities in the United States or elsewhere.
FOR:
SIEBERT FINANCIAL CORP.
120 Wall Street 25th Floor New York, NY 10005
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Investors:Siebert Financial Corp.Yesenia Berdugo,
212-644-2435Office of the AdministratororMedia:LHK
Communications LLCLaura Hynes-Keller,
212-758-8602laurahk@lhkcommunications.com
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