A fast casual dining restaurant chain plans to be the first issuer to offer a dividend as a means to sell investors on its Regulation A+ public offering. FAT Brands, which owns the FAT Burger and Buffalo’s Cafe casual restaurant franchises, announced on August 3 it is working exclusively with Tripoint Global Securities to qualify a Tier 2 offering with the hopes of raising $20 million.
FAT Brands intends to use the proceeds from the offering for new acquisitions, working capital, domestic and international expansion, and retirement of existing debt.
“Today we own two franchise brands and are in the process of acquiring a third. We already have management teams in 18 countries around the world, which is the bulk of the start-up cost when we launch a new brand. As we acquire more brands we can distribute them to our existing franchise markets, and an IPO is the best way to access capital to help reach that goal,” CEO Andy Wiederhorn told CNBC when he announced the company’s intention to use Reg A+ for an initial public offering.
FAT Burger is a 65-year-old company fashioned as a self-serve burger joint that competes with In-n-Out and Shake Shack (SHAK). Buffalo’s Café began in Roswell, Ga. in 1985, and is known for its chicken wings with 13 different sauces.
“As we make the transition from a private company to a public one, we are delighted to position our restaurants so that our fans can now be part owners too,” said Wiederhorn in a press release. CLICK HEADLINE FOR MORE>>
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