FAT Brands completes $8M in series A preferred stock financing

FAT Brands, a global restaurant franchising company that owns Fatburger, Buffalo's Cafe, Buffalo's Express and Ponderosa and Bonanza Steakhouses, has closed its offering of $8,000,000 of units comprised of Series A preferred stock and common stock purchase warrants.

The company entered into a Subscription Agreement for the issuance and sale of 800 units, with each unit consisting of 100 shares of the company's newly designated Series A Fixed Rate Cumulative Preferred Stock and a five-year warrant to purchase 125 shares of common stock warrants at an exercise price of $8 per share.

The sales price of each unit was $10,000, resulting in gross proceeds to the company from the initial closing of $8,000,000. The company may conduct additional closings of units up to an aggregate of $10,000,000 for an additional 90 days, resulting in a maximum issuance of 100,000 preferred shares and warrants to purchase a maximum of 125,000 shares of Common Stock

Investors in the preferred shares will receive quarterly cash dividends at a fixed rate of 9.9 percent per year, plus deferred dividends equal to 4 percent per year, payable upon the five-year anniversary of the initial issuance date or the earlier redemption of the Preferred Shares.

The company is in active negotiations for additional debt and equity financing arrangements and expects to announce additional transactions in the near future to support the company's growth.

FAT Brands CEO Andrew Wiederhorn is keynoting the Restaurant Franchising and Innovation Summit, July 16-18 in London. Click here to register.


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