JERSEY CITY, N.J., Nov. 13 /PRNewswire-FirstCall/ -- Hudson Holding Corporation ("Hudson"); (OTC Bulletin Board: HDHL) announced that on November 12 , 2009 it had completed an initial closing on its private placement offering of $4,337,500 million of its common stock at a purchase price of $0.25 a share.. The offering was subscribed by several existing shareholders and certain officers, directors and employees, including its new CEO, Tony Sanfilippo. In connection with the financing, Hudson issued 17,350,000 shares of common stock. The Company also entered into a registration rights agreement with the investors that provides for two "demand" registrations at the Company's expense. As a result of the financing, Hudson's working capital now exceeds $10.6 million and the net capital of its Hudson Securities, Inc. broker dealer subsidiary now exceeds $ 9 million. The Company intends to use the proceeds for working capital purposes, to further strengthen its capital position and to facilitate additional recruitment at its broker dealer subsidiary, Hudson Securities.

"I am pleased that our key stake holders - existing shareholders, directors and employees - have chosen to validate our business model," said Tony Sanfilippo, Hudson's Chief Executive Officer. "Building a reserve of working capital will permit Hudson to pursue the recruitment of additional proven producers and a variety of strategic opportunities, including the expansion of current business lines."

The private placement was made exclusively to accredited investors on an unsolicited basis in a private transaction under Regulation D, and is intended to be exempt from the registration requirements of the Securities Act of 1933, as amended. The Company did not incur any broker or finder costs or expenses in connection with the offering. The shares of common stock issued in the private placement may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements. Additional details will be provided in Hudson's forthcoming quarterly report on Form 10-Q, which will be filed with the Securities and Exchange Commission.

Hudson Holding Corporation is a publicly traded company on the OTC Bulletin Board under the symbol "HDHL" and is the parent of Hudson Securities, Inc. and Hudson Technologies, Inc. Hudson Securities, Inc. is dedicated to meeting the liquidity needs of its clients -- institutions, hedge funds, asset managers, and broker dealers -- by providing execution solutions and making markets in over 15,000 U.S. and foreign securities and ADRs. As a registered broker-dealer under the Securities Exchange Act of 1934, Hudson Securities is a member of the Financial Industry Regulatory Authority ("FINRA") and has been in business since 1984. Hudson Technologies provides technology services to Hudson Securities and client companies.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of the securities in any jurisdiction in which such offering would be unlawful.

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission. 

    Contacts:

    Anthony (Tony) M. Sanfilippo            Keith R. Knox
    CEO                                     President
    201-216-0100                            201-216-0100

    Andrew Lewin
    Investor Relations
    alewin@hudsonsecurities.com

SOURCE Hudson Holding Corporation