.August 16, 2024 Friday 6:50 PM

Bryant Riley, co-CEO of B. Riley Financial, proposed to acquire the investment bank in a regulatory filing, offering $7 per share, a 39% premium to the stock’s last closing price, causing shares to surge over 16% on Friday.

B. Riley’s stock plummeted 70% this week, reflecting challenges faced by the Los Angeles-based financial services firm, particularly related to its investment in Franchise Group, the parent company of Vitamin Shoppe.

Riley, the co-founder and largest shareholder of B. Riley, stated that the acquisition would require approval from a special committee of independent directors, highlighting the need to prioritize long-term objectives over short-term goals.

B. Riley shares dropped nearly 52% earlier this week after disclosing preliminary second-quarter results, including a projected net loss of $435 to $475 million, equivalent to a loss of $14 to $15 per share, and the suspension of its dividend.

The financial setback was mainly due to non-cash losses from investments in Franchise Group and a loan receivable from Vintage Capital, collateralized by equity interests in FRG, as cited by Riley as the primary reasons for the poor quarterly performance.