B. Riley provides additional clarification on Freedom VCM stake

B. Riley Financial says its annual report provides additional clarification regarding the company’s investment in Freedom VCM, “which addresses unsubstantiated claims” made about the company’s role and participation in the FRG take-private transaction and its investment in FRG. As noted, B. Riley’s ownership of Freedom VCM amounted to $281M, or 31%, in connection with the take-private transaction. As of December 31, 2023, the fair value of the investment in Freedom VCM totaled $287M and is included in securities and other investments owned, at fair value in the consolidated balance sheets. B. Riley intends to amend its August 21, 2023 8-K in connection with the closing of its investment in the FRG take-private transaction to include updated historical FRG financial statements and related pro forma financials. As result of the successful sales by FRG of its Badcock and Sylvan Learning businesses in December 2023 and February 2024, respectively, FRG is in the process of preparing its 2022 annual financial statements and interim June 2023 financial statements in accordance with GAAP to recast these businesses as discontinued operations. The company anticipates filing the amended Form 8-K to include such financial statements in the near term.