NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- DPW Holdings, Inc. (NYSE:DPW), a diversified holding company (“DPW,” or the “Company”), announced on January 2, 2020 that its wholly owned subsidiary, DPW Financial Group, Inc. (“DPWF”), has entered into an agreement whereby it will acquire two broker-dealers, consisting of Glendale Securities, Inc. (“GSI”), a retail broker-dealer, and its correspondent clearing broker dealer (collectively, the “Firms”).
DPW also announced that the closing of the agreement is subject to customary conditions, including regulatory clearance, which consists principally of approval by the Financial Industry Regulatory Authority, Inc. (“FINRA”) and that FINRA may not approve the acquisitions in the foreseeable future, if at all.
On January 7, 2020, the Firms held a telephonic meeting with representatives of FINRA and were, to DPW’s knowledge, informed by FINRA that the proposed transaction would not be approved in its currently contemplated form. As a result, the Firms have withdrawn their respective applications seeking FINRA’s approval of the agreement.
The Company is reviewing the information it has been provided by GSI and is presently evaluating its options with respect to the agreement, including whether the agreement, possibly in modified form, could reasonably be expected to close in the foreseeable future, if ever, as well as other outside factors that could affect FINRA’s view of the agreement.
In any event, given the withdrawal of the agreements, the agreement could under no circumstances be closed until late in the third quarter of 2020 at the earliest, if ever.
For further information regarding all terms and conditions contained in the definitive agreement, please see the Company’s Form 8-K relating to the intended acquisition of the Firms, which was filed on January 2, 2020.