Continuing to raise capital, National Holdings Corp. is selling part of one of its broker-dealers to a Native American tribe interested in buying stakes in the securities business.
Continuing to raise capital, National Holdings Corp. is selling part of one of its broker-dealers to a Native American tribe interested in buying stakes in the securities business.
National Holdings has sold 25% of Equity Station Inc., one of its three broker-dealers, to Osage LLC, which is controlled by the Osage Nation of Oklahoma. The price was $800,000, with a one-year option to buy a majority stake.
The two other broker-dealers under the National Holdings umbrella are National Securities Corp. and vFinance Investments Inc.
Last month, National Holdings said that it had raised $1.7 million from new investors, certain members of management and its board.
National Holdings and Osage have been talking to each for about a year, said Mark Goldwasser, chief executive of National Holdings.
“Osage sees a huge opportunity, and we're talking with them about a new joint venture,” he said. “They're involved in casinos and real estate, and they're looking at the capital markets.”
This is the second time in less than a year that a Native American tribe has invested in a broker-dealer.
Last September, Westrock Group Inc. was acquired by LBC Western Holdings LLC, which is owned by the Lower Brule Sioux tribe of South Dakota.
Many Native American tribes have invested heavily in casinos and gambling over the years. But recently, a number of tribes have begun diversifying their investments — purchasing real estate and funneling money into green technology and more traditional businesses.
