BurgerFi Obtains Additional Shareholder Support

Rhea-AI Summary

BurgerFi International (NASDAQ: BFI, BFIIW) announced a significant increase in investment by its Executive Chairman, Ophir Sternberg, along with the management team and major investor, L Catterton. They purchased 1.5 million shares from an affiliate of L Catterton, establishing them as the largest shareholders. Additionally, L Catterton provided $5.1 million in financing, secured through a junior promissory note. This investment also led to an expansion of the BurgerFi Board of Directors and modifications to the Series A Preferred Stock to facilitate additional director nominations. The moves signify strong confidence in the company's growth potential.

Positive

• Increased investment of 1.5 million shares by management team and L Catterton, enhancing shareholder confidence.
• L Catterton's additional $5.1 million financing strengthens BurgerFi's liquidity.
• Expansion of the Board of Directors to foster better governance.

Negative

• None.

Additional stock purchase made by Executive Chairman of the BurgerFi Board & Lionheart Capital founder alongside senior BurgerFi management team.

Transaction Supported by Marquee Investor, L Catterton

FORT LAUDERDALE, Fla., Feb. 27, 2023 (GLOBE NEWSWIRE) -- BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, and the high-quality, casual dining pizza brand under the name Anthony’s Coal Fired Pizza & Wings, today announced that the Company has received additional shareholder support in the Company’s efforts to continue its growth and development.

Ophir Sternberg, Executive Chairman of the Board of BurgerFi and Founder & CEO of Lionheart Capital, along with certain senior members of the BurgerFi management team, have increased their respective investment in BurgerFi through the purchase of 1.5 million shares of BurgerFi common stock from an affiliate of L Catterton. Following such purchase, Lionheart, together with its founder, Ophir Sternberg, alongside with the BurgerFi management team, are collectively now the largest shareholders in the Company.

In addition, pursuant to the terms of the Company’s credit agreement, as amended, L Catterton has provided an additional $5.1 million of financing to the Company through a junior secured promissory note with 4% interest accrued to maturity in September 2027. In connection with this investment, the BurgerFi Board of Directors was expanded to seven members and the terms and conditions of the Series A Preferred Stock of the Company, currently held by an affiliate of L Catterton, were amended to allow for the nomination of an additional member of the Board of Directors and certain other protective provisions. As a result, David Heidecorn, Senior Advisor to L Catterton, was appointed as a Director to serve alongside to the existing members of the Board of Directors.

Ophir Sternberg, Executive Chairman of BurgerFi, stated, “The willingness of L Catterton, Lionheart Capital and our management team to further invest in BurgerFi is a testament to our potential, and I look forward to working alongside David on our Board. I similarly share their confidence in the opportunities at both BurgerFi and Anthony’s and have consequently increased my own investment in the Company.”

About BurgerFi International (NASDAQ: BFI, BFIIW)

Established in 2011, BurgerFi is a leading multi-brand restaurant company that develops, markets, and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi is among the nation’s fastest-growing better burger concepts with 114 BurgerFi restaurants (89 franchised and 25 corporate-owned). As of the Company’s fiscal year ended January 2, 2023, BurgerFi is the owner and franchisor of the two following brands with a combined 174 locations.

BurgerFi. BurgerFi is chef-founded and committed to serving fresh, all-natural and quality food at all locations, online and via first-party and third-party deliveries. BurgerFi uses 100% American Angus Beef with no steroids, antibiotics, growth hormones, chemicals or additives. BurgerFi’s menu also includes high quality wagyu beef, antibiotic and cage-free chicken offerings, fresh, hand-cut sides, and custard shakes and concretes. BurgerFi was named “The Very Best Burger” of the 2023 Burger Bash at the SOBE Wine and Food Festival, the “Best Burger“Best Fast Casual Restaurant” in USA Today’s 10Best 2022 Readers Choice Awards for the second consecutive year, QSR Magazine's Breakout Brand of 2020, Fast Casual's 2021 #1 Brand of the Year and included in Inc. Magazine’s Fastest Growing Private Companies List. In 2021, Consumer Report’s Chain Reaction Report praised BurgerFi for serving “no antibiotic beef” across all its restaurants, and Consumer Reports awarded BurgerFi an “A-Grade Angus Beef” rating for the third consecutive year. To learn more about BurgerFi or to find a full list of locations, please visit www.burgerfi.com. Download the BurgerFi App on iOS or Android devices for rewards and 'Like' or follow @BurgerFi on Instagram, Facebook and Twitter. BurgerFi® is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.

Anthony’s. Anthony’s was acquired by BurgerFi on November 3, 2021 and is a premium pizza and wing brand that operates 60 corporate-owned casual restaurant locations, as of January 2, 2023. Known for serving fresh, never frozen and quality ingredients, Anthony’s is centered around a 900-degree coal fired oven with menu offerings including “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. Anthony’s was named “The Best Pizza Chain in America” by USA Today's Great American Bites and “Top 3 Best Major Pizza Chain” by Mashed in 2021. To learn more about Anthony’s, please visit www.acfp.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to BurgerFi's estimates of its future business outlook, liquidity, prospects or financial results, long-term opportunities, or executing on growth strategy for both brands”. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q, and those discussed in other documents we file with the Securities and Exchange Commission, including our ability to continue to access liquidity from our credit agreement and remain compliant with financial covenants therein, as well as to successfully realize the expected benefits of the acquisition of Anthony’s. All subsequent written and oral forward-looking statements attributable to BurgerFi or persons acting on BurgerFi’s behalf are expressly qualified in their entirety by the cautionary statements included in this press release. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Investor Relations:
ICR
Michelle Michalski
IR-BFI@icrinc.com

Company Contact:
BurgerFi International Inc.
IR@burgerfi.com

Media Relations Contact:
rbb Communications
Ailys Toledo
Ailys.Toledo@rbbcommunications.com

FAQ

What recent investment occurred involving BurgerFi (BFI, BFIIW)?

BurgerFi's Executive Chairman and management team purchased 1.5 million shares, supported by major investor L Catterton.

How much financing did L Catterton provide to BurgerFi?

L Catterton provided an additional $5.1 million in financing through a junior secured promissory note.

What changes were made to BurgerFi's Board of Directors?

The Board was expanded to seven members with the appointment of David Heidecorn as a new director.

What is the significance of the recent shareholder support for BurgerFi?

The investment signifies strong confidence in BurgerFi's growth potential from key stakeholders.