National Holdings Corp. said on Friday it completed raising capital and has closed on an $8.8 million private offering of common stock to a group of unnamed investors. The new round of fund raising eliminates all outstanding debt and capitalizes the operation for growth, the company said in a press release. National Holdings controls two independent broker-dealers, National Securities Corp. and vFinance Investment Inc..
The company also named a new CEO and executive co-chairman, Wall Street veteran Mark D. Klein, who replaces Mark Goldwasser. Mr. Klein was chairman of Ladenburg Thalmann & Co. Inc. before leaving in 2007. Since March 2012, Mr. Klein has been on the board of National Holdings, which trades on the over-the-counter bulletin board under the symbol NHLD.
Mr. Goldwasser is remaining at National Holdings president and vice-chair. He will remain CEO of National Securities, one of the company's independent broker-dealer.
“This is a game changing move for us,” Mr. Goldwasser said on Friday afternoon. “This is the strongest balance sheet we've had for years.”
National Holdings Corp. stock closed trading at 42 cents per share, up four cents for the day, an increase of more than 14%.