FAT Brands Inc. Announces Completion of $8 Million Series A Preferred Stock Financing
FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”), a leading global restaurant
franchising company, today announced the initial closing of 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 (“Preferred Shares”) and a 5-year Warrant
to Purchase 125 shares of Common Stock (“Warrants”) at an exercise price of $8.00 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% per year, plus deferred
dividends equal to 4.0% 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.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual
and casual dining restaurant concepts around the world. The Company currently owns five restaurant brands, Fatburger, Buffalo’s
Cafe, Buffalo’s Express and Ponderosa & Bonanza Steakhouses, that have approximately 300 locations open and 300 under
development in 32 countries. For more information, please visit www.fatbrands.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to the timing and ability of the Company to consummate additional closings of Preferred Shares
and Warrants, its ability to negotiate and complete other debt and equity financing transactions, its future growth, and its
ability to pay dividends to investors. Forward-looking statements generally use words such as "expect," "foresee," "anticipate,"
"believe," "project," "should," "estimate," "will," "plans," "forecast," and similar expressions, and reflect the Company’s
expectations concerning the future. It is possible that the Company’s future results may differ materially from its current
expectations or those expressed or implied in these forward-looking statements. We refer you to the documents that we file from
time to time with the Securities and Exchange Commission, including our reports on Form 10-K, Form 10-Q and Form 8-K, for a
discussion of the risks and uncertainties that could cause our actual results to differ materially from our current expectations or
forward-looking statements contained in this press release. We undertake no obligation to update any forward-looking statement
to reflect events or circumstances occurring after the date of this press release.
Legal Disclaimer
The Preferred Shares and Warrants are being offered only to "accredited investors" in reliance on the exemption from
registration set forth in Rule 506(b) under the Securities Act of 1933, as amended (the “Securities Act”). The Preferred Shares and
Warrants, and the common stock issuable upon exercise of the Warrants, have not been registered under the Securities Act or the
securities laws of any state or other jurisdiction, and may not be offered or sold without registration or an applicable exemption
from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities
laws.
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 sales of the Preferred Shares or Warrants in any jurisdiction in which such offer, solicitation or sales would be
unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Media Relations:
Konnect Agency
Shelby Robinson/Emily Johnston
srobinson@konnectagency.com
ejohnston@konnectagency.com
213-988-8344
or
Investor Relations:
ICR
Alexis Tessier, 203-682-8286
IR-FATBrands@icrinc.com
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