SEC Probes B. Riley’s Nomura-Backed Deal Involving FRG Acquisition

<p>The US Securities and Exchange Commission (SEC) is
investigating B. Riley's role in a buyout of Franchise Group Inc. (FRG),
orchestrated by an individual linked to the collapse of the Prophecy Asset
Management hedge fund and partially financed by Nomura Holdings Inc., Bloomberg
reported.</p><p>The SEC interviews highlight how Brian Kahn's
assets, linked to the collapse of the Prophecy Asset Management hedge fund,
were utilized as collateral for Nomura's financing of the FRG buyout. This
development has impacted B. Riley's shares, attracting attention from
short-sellers anticipating further downturns.</p><p>The Connection with Nomura</p><p>Amidst the turmoil, B. Riley maintains its stance,
stating it has yet to receive any official communication from the SEC. The
company emphasizes its commitment to cooperation in regulatory inquiries,
dispelling concerns while expressing frustration at what it perceives as
aggressive tactics by short-sellers. </p><p>The SEC's scrutiny extends beyond B. Riley,
encompassing bebe stores inc., a women's clothing chain controlled by B. Riley.
Investigations seek to unravel the connections between bebe stores, B. Riley,
and Kahn, further adding complexity to the unfolding financial drama. </p><p>According to Bloomberg, as the investigations into
this matter continue, the wider implications of these connections become
increasingly apparent.</p><p>Expect ongoing updates as this story evolves. </p>

This article was written by Jared Kirui at www.financemagnates.com.