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Beverly Hills, CA, July 13, 2020 (GLOBE NEWSWIRE) -- FAT Brands Inc. (Nasdaq: FAT), today announced the pricing of an underwritten public offering of 360,000 shares of 8.25% Series B Cumulative Preferred Stock. Each share of 8.25% Series B Cumulative Preferred Stock will be accompanied by five warrants (“Warrants”), each Warrant to purchase one share of Common Stock at an exercise price of $5.00 per share of Common Stock. Each share of Series B Cumulative Preferred Stock and accompanying five Warrants is being offered at a price of $25.00. The shares of Series B Preferred Stock and Warrants will be issued separately but can only be purchased together in this offering. Each Warrant will be exercisable beginning on the earlier of one year from the date of issuance or the consummation of a consolidation, merger or other business combination transaction between the Company and its parent, Fog Cutter Capital Group Inc. Each Warrant will thereafter remain exercisable at any time until the five-year anniversary of the date of issuance.
The gross proceeds to the Company are expected to be approximately $9,000,000 prior to deducting underwriting discounts and estimated offering expenses. The Company has also granted to the underwriters a 45-day option to acquire an additional 54,000 shares of 8.25% Series B Cumulative Preferred Stock and/or 270,000 Warrants to cover over-allotments, if any.
The offering is expected to close on July 16, 2020, subject to customary closing conditions. The shares of 8.25% Series B Cumulative Preferred Stock are expected to begin trading on the Nasdaq Capital Market under the symbol “FATBP”, and the Warrants are expected to begin trading on the Nasdaq Capital Market under the symbol “FATBW”, on July 14, 2020.
FAT Brands Inc. intends to use the net proceeds of the offering for general corporate purposes, possible future acquisitions and growth opportunities, the redemption of a portion of the outstanding Series A Preferred Stock and payment of a portion of accrued dividends on the outstanding Series A-1 Preferred Stock.
ThinkEquity, a division of Fordham Financial Management, Inc., is acting as sole book-running manager for the offering. Digital Offering, LLC is acting as financial advisor for the offering.
This offering is being made pursuant to a registration statement on Form S-1 (No. 333-239032) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and subsequently declared effective on July 13, 2020. A preliminary prospectus describing the terms of the proposed offering has been filed with the SEC and is available on the SEC’s website located at http://www.sec.gov. A final prospectus related to the proposed offering will be filed and made available on the SEC’s website. Electronic copies of the final prospectus may be obtained, when available, 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.