FAT Brands Announces Proposed Public Offering of Class A Common Stock

Rhea-AI Summary

FAT Brands Inc. (Nasdaq: FAT, FATBP, FATBW) announced its intention to conduct an underwritten public offering of Class A Common Stock, with all shares to be sold by the company. The offering will also include a 45-day option for underwriters to purchase an additional 15% of the shares for over-allotments. The offering is subject to market conditions, and details will be outlined in a preliminary prospectus supplement to be filed with the SEC. ThinkEquity is the sole book-running manager for this offering.

Positive

• The offering allows FAT Brands to raise capital for strategic initiatives.
• Sole book-running manager ThinkEquity may provide strong market insights.

Negative

• Issuing new shares may lead to shareholder dilution.

Los Angeles, CA, Nov. 04, 2022 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty) Brands Inc. (Nasdaq: FAT, FATBB, FATBP, FATBW) (“FAT Brands” or the “Company”), today announced that it intends to offer to sell shares of its Class A Common Stock in an underwritten public offering. All of the shares of Class A Common Stock are to be sold by the Company.

ThinkEquity is acting as sole book-running manager for the offering.

The Company expects to grant the underwriters a 45-day option to purchase up to an additional 15% of the number of shares of Class A Common Stock sold in this offering to cover over-allotments, if any. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

The securities will be offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-261365), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 24, 2021 and declared effective by the SEC on February 8, 2022. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004, by telephone at (877) 436-3673 or by email at prospectus@think-equity.com. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, 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. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies including, but not limited to, uncertainties surrounding the severity, duration and effects of the COVID-19 pandemic, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the documents we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks, uncertainties and contingencies. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.

Investor Relations: ICR Michelle Michalski IR-FATBrands@icrinc.com 646-277-1224 Media Relations: Erin Mandzik emandzik@fatbrands.com 860-212-6509

FAQ

What is the purpose of FAT Brands' public offering announced on November 4, 2022?

The public offering aims to raise capital for strategic initiatives.

Who is managing the FAT Brands stock offering?

ThinkEquity is acting as the sole book-running manager for the offering.

What additional option do underwriters have in the FAT Brands offering?

Underwriters have a 45-day option to purchase an additional 15% of the shares sold.

What impact could the FAT Brands offering have on existing shareholders?

Existing shareholders may face dilution due to the issuance of new shares.