The Friendly Bear says B. Riley needs to immediately open internal investigation

The Friendly Bear says that B. Riley “has been lending to Brian Kahn (in what we believe are undisclosed transactions) and buying assets from him at inflated values. We think the company needs to immediately open an internal investigation into its entanglements with Kahn.” In a recently published report, The Friendly Bear further states that, “Given the tight relationship between B. Riley and Kahn, and the fact that Kahn was consistently borrowing from B. Riley and selling assets to B. Riley, there is no excuse for how B. Riley ‘missed’ the allegations of wrongdoing involving Kahn – it should have caught the allegations in its loan and manager due diligence as related civil litigation was public dating back to 2021.” “B. Riley is over-levered, its investments are atrocious, and it has been bleeding economic value to high level insiders via an unsupported dividend, as well as to “friends of the firm” through non-economic dealings. We expect the end game for this stock to be extremely ugly – one for the history books,” the report reads.