Kura Sushi USA Announces Closing of $56.9 Million Public Offering of Common Stock

Rhea-AI Summary

Kura Sushi USA, Inc. (NASDAQ: KRUS) closed its public offering, selling 1,265,000 shares of Class A common stock at $45.00 each, raising approximately $54.1 million after discounts. The offering included an additional 165,000 shares purchased by underwriters. Proceeds will be used for general corporate purposes, including capital expenditures, debt repayment under its revolving credit agreement, and working capital. The offering was managed by William Blair & Company, L.L.C. and Stephens Inc., with additional co-managers involved.

Positive

• Raised approximately $54.1 million for corporate purposes.
• Funds will be used for capital expenditures and debt repayment.

Negative

• Potential dilution of existing shares due to new stock issuance.
• Market volatility may affect stock performance.

IRVINE, Calif., July 23, 2021 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”), (NASDAQ: KRUS), a fast-growing technology-enabled Japanese restaurant concept, today announced the closing of its underwritten public offering of 1,265,000 shares of its Class A common stock at a public offering price of $45.00 per share, including the exercise in full by the underwriters of their option to purchase an additional 165,000 shares of Class A common stock. The Company received proceeds from the offering, net of the underwriters’ discount, of approximately $54.1 million.

Kura Sushi intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures, the repayment of the indebtedness outstanding under its existing revolving credit agreement with its parent company, working capital, and other business purposes.

William Blair & Company, L.L.C. acted as lead book-running manager for the offering. Stephens Inc. acted as book-running manager for the offering. Craig-Hallum Capital Group LLC and Roth Capital Partners acted as co-managers for this offering.

The offering was made pursuant to an effective shelf registration statement including a base prospectus that has been filed with the Securities and Exchange Commission (the “SEC”) and declared effective and is available on the SEC website. A prospectus supplement and the accompanying base prospectus related to the offering have been filed with the SEC and are available on the SEC website. Copies of these documents may be obtained from William Blair & Company, L.L.C., Attn: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by email at: prospectus@williamblair.com and Stephens Inc., Attention: Prospectus Department, 111 Center Street, Little Rock, AR 72201, by email at: prospectus@stephens.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 Kura Sushi USA, Inc.

Kura Sushi USA, Inc. is a fast-growing technology-enabled Japanese restaurant concept with 32 locations in nine states and Washington DC. The Company offers guests a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model. Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with over 480 restaurants and 35 years of brand history. For more information, please visit www.kurasushi.com.

Forward-Looking Statements

Except for historical information contained herein, the statements in this press release or otherwise made by our management in connection with the subject matter of this press release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors. This press release includes forward-looking statements that are based on management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “target,” “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “continue,” “predict,” “potential,” “plan,” “anticipate” or the negative of these terms, and similar expressions. Management’s expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. These risks and uncertainties include but are not limited to: risks related to the COVID-19 outbreak; our ability to successfully resume and maintain increases in our comparable restaurant sales; our ability to successfully execute our growth strategy and open new restaurants that are profitable; our ability to expand in existing and new markets; our projected growth in the number of our restaurants; macroeconomic conditions and other economic factors; our ability to compete with many other restaurants; our reliance on vendors, suppliers and distributors, including our parent company Kura Sushi, Inc.; concerns regarding food safety and foodborne illness; changes in consumer preferences and the level of acceptance of our restaurant concept in new markets; minimum wage increases and mandated employee benefits that could cause a significant increase in our labor costs; the failure of our automated equipment or information technology systems or the breach of our network security; the loss of key members of our management team; the impact of governmental laws and regulations; volatility in the price of our common stock; and other risks and uncertainties as described in our filings with the SEC. These and other factors that could cause results to differ materially from those described in the forward-looking statements contained in this press release can be found in the Company’s other filings with the SEC. Undue reliance should not be placed on forward-looking statements, which are only current as of the date they are made. The Company assumes no obligation to update or revise its forward-looking statements, except as may be required by applicable law.

Investor Relations Contact:
Fitzhugh Taylor
(657) 333-4010
investor@kurausa.com

FAQ

What is Kura Sushi's recent public offering details?

Kura Sushi offered 1,265,000 shares of Class A common stock at $45.00 per share, raising about $54.1 million.

When did Kura Sushi close its public offering?

The public offering closed on July 23, 2021.

What will Kura Sushi do with the proceeds from the offering?

The proceeds will be used for general corporate purposes, including capital expenditures and debt repayment.

Who managed Kura Sushi's public offering?

William Blair & Company and Stephens Inc. acted as lead managers for the offering.

How many shares were issued in Kura Sushi's offering?

A total of 1,265,000 shares were issued, including an additional 165,000 shares purchased by underwriters.