Chanticleer Holdings to raise up to $16 million as it aims to expand restaurant brand footprint
Chanticleer Holdings (NASDAQ:BURG) announced Monday that it is set to raise up to US$16 million in a rights offering with an aim to beef up the company’s restaurant brand footprint, as well as for general corporate purposes.
The firm said it intends to offer up to $16 million of shares of its common stock in a rights offering at $1 a share to shareholders and certain warrant holders. The firm said under the offering, Chanticleer will distribute, at no charge, three non-transferable subscription rights for each share of common stock held as of June 7, 2019. Each right will entitle the holder to purchase one share of Chanticleer’s common stock at $1 per share.
The Charlotte-based company owns and operates Little Big Burger, BGR The Burger Joint and American Burger Co. In addition to what it calls its “Better Burger” portfolio, Chanticleer owns Just Fresh, a chain that makes sandwiches and wraps, as well as eight locations of the iconic Hooters franchise.
READ: Chanticleer to bring the plant-based Beyond Burger to its restaurants
The firm said it intends to use the funds for strategic acquisitions and general corporate purposes, which may include funding the firm’s growth plan, working capital and capital expenditures and funding operations.
According to a company statement, management has “identified and is exploring a potential acquisition pursuant to a non-binding letter of intent.”
If the transaction is successful, it is anticipated that approximately $7 million of the proceeds of the offering would be used to complete the acquisition. The company noted there are no assurances that the acquisition will be completed.
The firm noted that the right offering is anticipated to close on June 24, 2019 and the offering is subject to market and other conditions, with no assurances as to when it may be completed, or the actual size of the offering.
Shares of Chanticleer were at US$0.94 on Monday in New York.
Contact Katie Lewis at [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/221822/chanticleer-holdings-to-raise-up-to-16-million-as-it-aims-to-expand-restaurant-brand-footprint-221822.html
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