Operations

Fat Brands looks to raise $9M in Series B offering

July 14, 2020

Fat Brands Inc., the parent company of Fatburger, Elevation Burger, Ponderosa and other brands, announced the pricing of 360,000 shares of Series B cumulative preferred stock and warrants at $25 a share.

Each share of 8.25% Series B cumulative preferred stock will be accompanied by five warrants, with each warrant to purchase one share of common stock at an exercise price of $5 per share.

The company granted the underwriters a 45-day option to buy another 54,000 shares of 8.25% Series B cumulative preferred stock and/or 270,000 warrants to cover over-allotments.

The proceeds are expected to be $9 million prior to underwriting discounts and estimated offering expenses. Proceeds will be used for general corporate purposes, possible future acquisitions, growth opportunities, redemption of a portion of outstanding Series A preferred stock or payment of a portion of accrued dividends.

Shares of the preferred stock will begin trading on the Nasdaq under the FATBP symbol and warrants under the Nasdaq Capital Markets under the FATBW symbol.

ThinkEquity, a division of Fordham Financial Management Inc., was sole book-running manager and Digital Offering LLC was financial advisor.