JFB Construction (JFB) investor relations material

Executive summary

• The company completed a $43.9 million PIPE financing, issuing Series C Convertible Preferred Stock and warrants, and used $12 million of proceeds to redeem all Class B Common Stock from the CEO, simplifying the capital structure.

• The PIPE investors received 4,389,500 Series C Preferred shares (convertible at $2.72/share), 8,068,933 Common A Warrants ($5.75 exercise, 3-year term), and 8,068,933 Common B Warrants ($6.25 exercise, 3-year term), with anti-dilution and adjustment protections.

• The Placement Agent received an 8% cash fee and 8% warrant coverage (exercise price $5.44, 5-year term).

• The Series C Preferred Stock has a $10.00 stated value, is convertible at the holder's option (subject to 4.99% beneficial ownership cap), and includes anti-dilution adjustments for lower-priced issuances (floor price $2.77) and protections in fundamental transactions.

• The PIPE financing was conducted under Rule 506(b) of Regulation D, with lock-up agreements restricting sales by insiders for 180 days.

Financial highlights

• The PIPE financing raised $43.9 million gross, with $27.5 million net proceeds after fees and expenses.

• $12 million of proceeds were used to redeem all 8,000,000 Class B Common Stock from the CEO.

• The company issued 4,389,500 Series C Preferred shares, convertible into 16,137,866 shares of Common Stock at $2.72/share.

• Investors received 8,068,933 Common A Warrants ($5.75 exercise) and 8,068,933 Common B Warrants ($6.25 exercise), both with 3-year terms.

• The Placement Agent received 8% cash commission and 8% warrant coverage (exercise price $5.44, 5-year term).

Capital allocation and financing

• The PIPE proceeds were allocated to redeem Class B Common Stock ($12 million) and for general corporate purposes.

• The transaction eliminated the dual-class structure, leaving only Class A Common Stock and Preferred Stock outstanding.

• The company is required to reserve sufficient shares for conversion and warrant exercises, and to maintain Nasdaq listing.