FAT Brands Inc. Announces Closing of Public Offering of Series B Cumulative Preferred Stock and Full Exercise of Underwriter’s Overallotment Option

Rhea-AI Summary

FAT Brands Inc. (NASDAQ: FAT, FATBP, FATBW) has successfully closed its public offering of 460,000 shares of 8.25% Series B Cumulative Preferred Stock at $20.00 per share, generating gross proceeds of $9,200,000. This includes the full exercise of the underwriter’s option for an additional 60,000 shares. The capital is intended for general corporate purposes and potential acquisitions. The offering was managed by ThinkEquity and follows a registration statement effective from June 17, 2021.

Positive

• Successful closing of public offering generating $9,200,000 in gross proceeds.
• Funds will support general corporate purposes and potential acquisitions.

Negative

• None.

Beverly Hills, CA, June 22, 2021 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT, FATBP, FATBW), a leading global franchising company and parent company of iconic brands including Fatburger, Johnny Rockets, and seven other restaurant concepts, today announced the closing of its previously announced underwritten public offering of 460,000 shares of 8.25% Series B Cumulative Preferred Stock at a price to the public of $20.00 per share, which includes 60,000 shares issued and sold upon full exercise of the underwriter’s option to purchase additional shares.

The aggregate gross proceeds to the Company were $9,200,000, prior to deducting underwriting discounts and other offering expenses.

FAT Brands Inc. intends to use the net proceeds of the offering for general corporate purposes and possible future acquisitions and growth opportunities.

ThinkEquity, a division of Fordham Financial Management, Inc., acted as sole book-running manager for the offering. Digital Offering, LLC acted as a financial advisor for the offering.

This offering is being made pursuant to a registration statement on Form S-1 (No. 333-256344), as amended, previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective on June 17, 2021. A final prospectus related to the proposed offering has been filed and made available on the SEC’s website. Electronic copies of the final prospectus may be obtained from ThinkEquity, a division of Fordham Financial Management, Inc., 17 State Street, 22nd Floor, New York, New York 10004, Telephone: (877) 436-3673, Email: prospectus@think-equity.com.

 The press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 any such state or jurisdiction.

About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands Inc. (NASDAQ: FAT, FATBP, FATBW) (the Company) 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 nine restaurant brands: Fatburger, Johnny Rockets, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises approximately 700 units worldwide. 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. 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
Lynne Collier
IR-FATBrands@icrinc.com
646-430-2216

Media Relations:
JConnelly
Erin Mandzik
emandzik@jconnelly.com
862-246-9911

FAQ

What were the details of the FAT Brands public offering on June 22, 2021?

FAT Brands closed a public offering of 460,000 shares of 8.25% Series B Cumulative Preferred Stock at $20.00 per share, totaling $9,200,000 in gross proceeds.

How will FAT Brands use the proceeds from the recent offering?

The proceeds will be used for general corporate purposes and potential future acquisitions.

Who managed the FAT Brands public offering?

The offering was managed by ThinkEquity, a division of Fordham Financial Management, Inc.