FAT Brands Provides Update to Warrant Holders in connection with Twin Hospitality Spin-Off
FAT Brands has announced important updates regarding its previously disclosed partial spin-off of Twin Hospitality Group. The company will distribute a special stock dividend of 0.1520207 shares of Twin Hospitality Class A Common Stock for each share of FAT Brands Class A and B Common Stock held as of January 27, 2025.
Holders of FAT Brands' Warrants (FATBW) must exercise their warrants before the record date to receive the Twin Common Stock distribution. The current warrant exercise price of $2.2142 will be adjusted downward post-record date based on Twin Common Stock's fair market value. Based on an external valuation setting Twin Common Stock at $20.00 per share, the warrant exercise price is expected to be adjusted to zero following the record date.
FAT Brands ha annunciato aggiornamenti importanti riguardo la sua precedentemente comunicata scissione parziale di Twin Hospitality Group. L'azienda distribuirà un dividendo speciale di 0.1520207 azioni di Twin Hospitality Classe A per ciascuna azione di FAT Brands Classe A e B detenuta alla data del 27 gennaio 2025.
I detentori dei Warrants di FAT Brands (FATBW) devono esercitare i loro warrants prima della data di registrazione per ricevere la distribuzione delle azioni comuni di Twin. L'attuale prezzo di esercizio del warrant di $2.2142 sarà adeguato verso il basso dopo la data di registrazione in base al valore di mercato equo delle azioni comuni di Twin. Sulla base di una valutazione esterna che stabilisce il valore delle azioni comuni di Twin a $20.00 per azione, si prevede che il prezzo di esercizio del warrant venga adeguato a zero dopo la data di registrazione.
FAT Brands ha anunciado actualizaciones importantes sobre su escisión parcial previamente divulgada de Twin Hospitality Group. La compañía distribuirá un dividendo especial de 0.1520207 acciones de Twin Hospitality Clase A por cada acción de FAT Brands Clase A y B que se posea hasta el 27 de enero de 2025.
Los tenedores de Warrants de FAT Brands (FATBW) deben ejercer sus warrants antes de la fecha de registro para recibir la distribución de las acciones comunes de Twin. El precio actual de ejercicio del warrant de $2.2142 se ajustará a la baja después de la fecha de registro basado en el valor de mercado justo de las acciones comunes de Twin. Basado en una valoración externa que sitúa las acciones comunes de Twin a $20.00 por acción, se espera que el precio de ejercicio del warrant se ajuste a cero después de la fecha de registro.
FAT Brands는 Twin Hospitality Group의 이전에 발표된 부분 분사의 중요한 업데이트를 발표했습니다. 이 회사는 2025년 1월 27일 기준으로 보유한 FAT Brands Class A 및 B 보통주 1주당 0.1520207 주의 Twin Hospitality Class A 보통주를 특별 배당금으로 분배할 예정입니다.
FAT Brands의 워런트 보유자(FATBW)는 Twin Common Stock 배당을 받기 위해 기록일 이전에 워런트를 행사해야 합니다. 현재의 워런트 행사 가격인 $2.2142는 Twin Common Stock의 공정 시장 가치에 따라 기록일 이후 하향 조정될 것입니다. Twin Common Stock이 주당 $20.00으로 평가된 외부 평가를 기반으로, 기록일 이후 워런트 행사 가격은 제로로 조정될 것으로 예상됩니다.
FAT Brands a annoncé des mises à jour importantes concernant sa scission partielle précédemment divulguée de Twin Hospitality Group. L'entreprise distribuera un dividende spécial de 0.1520207 actions de Twin Hospitality Classe A pour chaque action de FAT Brands Classe A et B détenue au 27 janvier 2025.
Les détenteurs des Warrants de FAT Brands (FATBW) doivent exercer leurs warrants avant la date d'enregistrement pour recevoir la distribution des actions ordinaires de Twin. Le prix d'exercice actuel du warrant de 2,2142 $ sera ajusté à la baisse après la date d'enregistrement en fonction de la juste valeur de marché des actions ordinaires de Twin. Sur la base d'une évaluation externe évaluant les actions ordinaires de Twin à 20,00 $ par action, le prix d'exercice du warrant devrait être ajusté à zéro après la date d'enregistrement.
FAT Brands hat wichtige Updates zu seiner zuvor bekanntgegebenen Teilspaltung von Twin Hospitality Group angekündigt. Das Unternehmen wird eine Sonderdividende von 0.1520207 Aktien von Twin Hospitality Klasse A für jede gehaltene Aktie von FAT Brands Klasse A und B bis zum 27. Januar 2025 ausschütten.
Inhaber der Warrants von FAT Brands (FATBW) müssen ihre Warrants vor dem Stichtag ausüben, um die Verteilung der Twin Stammaktien zu erhalten. Der aktuelle Ausübungspreis des Warrants von $2.2142 wird nach dem Stichtag basierend auf dem fairen Marktwert der Twin Stammaktien nach unten angepasst. Basierend auf einer externen Bewertung, die die Twin Stammaktien auf $20.00 pro Aktie festlegt, wird erwartet, dass der Ausübungspreis des Warrants nach dem Stichtag auf null angepasst wird.
- Warrant holders have opportunity to receive Twin Hospitality shares through exercise
- Expected warrant exercise price reduction to zero increases warrant value
- Dilution of existing shareholders through warrant exercises
- Complex corporate restructuring may create uncertainty
Insights
This corporate action represents a pivotal moment for FAT Brands warrant holders, presenting a complex decision point with significant financial implications. The mechanics of this transaction deserve careful analysis:
The distribution ratio of 0.1520207 Twin Hospitality shares per FAT Brands share, combined with Twin's $20.00 per share valuation, effectively creates a distribution value of approximately
This creates two distinct scenarios for warrant holders:
- Exercise warrants before the record date: Receive both FAT Brands shares and the corresponding Twin Hospitality shares in the spin-off
- Hold warrants through the record date: Benefit from a reduced (likely zero) exercise price, but miss the Twin Hospitality distribution
The zero exercise price scenario post-record date essentially transforms the warrants into a free option to acquire FAT Brands shares, significantly enhancing their value proposition. However, this must be weighed against the immediate value of the Twin Hospitality shares that would be received through pre-record date exercise.
From a strategic perspective, this spin-off appears designed to unlock value by separating distinct business units, potentially creating more focused, efficient operations. The structure of the transaction, including the warrant adjustments, suggests careful consideration of all security holders while maintaining alignment with corporate objectives.
LOS ANGELES, Jan. 23, 2025 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT), a leading global franchising company, previously announced a partial spin-off of its subsidiary, Twin Hospitality Group Inc. (“Twin Hospitality”), in the form of a special stock dividend to FAT Brands’ common stockholders. As announced, the dividend will consist of 0.1520207 shares of Class A Common Stock of Twin Hospitality (“Twin Common Stock”) for each one share of FAT Brands Class A Common Stock and Class B Common Stock outstanding as of the close of trading on January 27, 2025 (the “record date”).
Holders of FAT Brands’ outstanding Warrants (NASDAQ: FATBW) who wish to receive the distribution of Twin Common Stock must exercise their Warrants for FAT Brands Class A Common Stock in advance of the record date. Warrants that are not exercised prior to the record date will not receive the distribution of Twin Common Stock, but instead will have their exercise price adjusted downward. The current exercise price of the Warrants is
Based on an external valuation of Twin Hospitality received by FAT Brands, we expect that the fair market value of Twin Common Stock will be set at
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, many of which are difficult to predict and beyond our control, which could cause our actual results, including the anticipated value of the spin-off shares discussed in this press release, to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the Information Statement furnished in a Form 8-K by Twin Hospitality Group Inc. and the documents filed by FAT Brands Inc. from time to time with the Securities and Exchange Commission for a discussion of these 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:
FAT Brands Inc.
Erin Mandzik
emandzik@fatbrands.com
860-212-6509
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FAQ
What is the distribution ratio for FAT Brands' Twin Hospitality spin-off in January 2025?
What happens to FAT Brands warrants (FATBW) after the Twin Hospitality spin-off?
What is the current exercise price of FAT Brands warrants before the Twin Hospitality spin-off?
When is the record date for FAT Brands' Twin Hospitality stock dividend?
