GEG Announced Two Transformative Deals Today Closing Out an Eventful 2022 in a Position of Strength
Sale of GEG's Majority
Ownership Interest in Forest
Approximately $45 million of cash from:
$18 million from sale of 61% of the common equity of Forest
$27 million expected from the right to put the remaining 19% ownership interest in Forest
Sale of GEG's DME Business
for $80 million
$26 million of cash and 346k shares of Quipt stock net to GEG after repayment of obligations
Eliminates the "Operating Companies" segment
Allows GEG to focus on scaling its Investment Management Business
Great Elm Group, Inc. | NASDAQ: GEG
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Combined the Transactions
Add $70 million+ of cash to GEG's balance sheet
Provide significant capital to accelerate growth of the Investment Management Business
Simplify the
organization and
reporting structure
Great Elm Group, Inc. | NASDAQ: GEG
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Pro Forma Capital Structure(1)
$000s
Cash
Investments(2)
Cash + Investments
93,132
33,188
$126,320
Long term debt
Short term notes payable
Convertible notes
Total Debt
Net Cash and Investments
26,945
5,661
36,085
$68,691
$57,629
Note: As a result of the transactions, GEG is expected to retain approximately $154 million of the NOLs it held as of 6/30/2022, of which approximately $131 million are able to be used for taxable income in Fiscal 2023 (other than gains resulting from the Forest transaction) but expire on 6/30/2023.
Great Elm Group 9/30/2022 capital structure pro forma for the DME and Forest transactions. Debt balances reflect principal outstanding as of 9/30/2022.
Includes GECC shares, the investment in Monomoy, and approximately 346k shares of Quipt common stock associated with the sale of the DME business.
Great Elm Group, Inc. | NASDAQ: GEG
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Simplified Organization
November 2022 Summary Structure
Complex Structure With Two Segments
Pro Forma Summary Structure
Streamlined Organization Focused on Building a
Diversified Asset Management Business
GECC
GEG
Great Elm
GECM
Monomoy
DME
Manager
Outside
Great Elm DME
Investors
Holdings, Inc.
Health
Care LLC
DME
Business
JPM Investor
Forest
GEG
GECC
GECM
Monomoy
Publicly traded
SEC-registered
Private REIT with
BDC with
investment advisor
approximately $374
$221 million of Fee
million of real
Paying AUM as of
estate assets and
9/30/2022
$207 million of Fee
Paying AUM as of
9/30/2022
Great Elm Group, Inc. | NASDAQ: GEG
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Great Elm Group Inc. published this content on 03 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 January 2023 03:07:10 UTC.
Great Elm Group, Inc. is an alternative asset management company. The Company is focused on growing a scalable and diversified portfolio of long-duration, permanent capital vehicles across corporate credit, specialty finance, real estate, and other asset classes. The Company and its subsidiaries manage Great Elm Capital Corp., a business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Its wholly owned subsidiaries include Great Elm Capital Management, Inc. (GECM), Great Elm Opportunities GP, Inc. (GEO GP), Great Elm Capital GP, LLC (GEC GP), Great Elm FM Acquisition, Inc. (FM Acquisition), Great Elm DME Holdings, Inc. (DME Holdings), Great Elm DME Manager, LLC (DME Manager), and Monomoy BTS Corporation (MBTS), among others.
GREAT ELM GROUP, INC. 
