FAT Brands announces a stock dividend of Twin Hospitality shares for its common stockholders, adjusting warrant prices accordingly.
Quiver AI Summary
FAT Brands Inc. has announced a partial spin-off of its subsidiary, Twin Hospitality Group Inc., which will be distributed to FAT Brands' common stockholders as a special stock dividend. Each holder of FAT Brands Class A and Class B Common Stock will receive 0.1520207 shares of Twin Common Stock for each share they own as of January 27, 2025. Shareholders with outstanding Warrants who wish to receive the Twin Common Stock must exercise their Warrants before the record date, or they will see their exercise price adjusted downward after the record date. The adjustment is expected to reduce the Warrant exercise price to zero, based on the anticipated fair market value of Twin Common Stock at $20.00 per share. The announcement includes forward-looking statements that may be subject to significant risks and uncertainties.
Potential Positives
- The announcement of a special stock dividend from the spin-off of Twin Hospitality Group Inc. provides a direct benefit to FAT Brands’ common stockholders.
- The expected decrease in Warrant exercise price to zero enhances the attractiveness of the Warrants for existing investors.
- The projected fair market value of Twin Hospitality's stock at $20.00 per share signifies strong valuation, suggesting financial growth and stability for the company.
- This spin-off and corresponding dividend may improve the overall market perception of FAT Brands as a franchise leader, indicating strategic restructuring and value creation for shareholders.
Potential Negatives
- The adjustment of the Warrant exercise price to zero may raise concerns among investors regarding the value of their existing warrants and could indicate potential dilution of shareholder value.
- The need for warrant holders to exercise their warrants in advance to benefit from the stock dividend may lead to dissatisfaction among investors who miss the opportunity or feel pressured to act quickly.
- The reliance on forward-looking statements introduces uncertainty, as actual outcomes may significantly differ due to risks and factors beyond the company's control, potentially affecting investor confidence.
FAQ
What is the FAT Brands partial spin-off announcement about?
The announcement details a special stock dividend where FAT Brands shareholders will receive shares of Twin Hospitality Group Inc.
When is the record date for the stock dividend?
The record date for receiving the Twin Common Stock dividend is January 27, 2025.
How many shares of Twin Common Stock will be distributed?
Shareholders will receive 0.1520207 shares of Twin Common Stock for each share of FAT Brands Class A and Class B Common Stock.
What happens to unexercised Warrants before the record date?
Unexercised Warrants will not receive the Twin Common Stock but will have their exercise price adjusted downward instead.
What is the expected fair market value of Twin Hospitality shares?
The expected fair market value of the Twin Common Stock is anticipated to be $20.00 per share, affecting Warrant adjustments.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FAT Insider Trading Activity
$FAT insiders have traded $FAT stock on the open market 9 times in the past 6 months. Of those trades, 9 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $FAT stock by insiders over the last 6 months:
- MARK ELENOWITZ has made 3 purchases buying 9,200 shares for an estimated $100,682 and 0 sales.
- CUTTER HOLDINGS, LLC FOG has made 5 purchases buying 4,020 shares for an estimated $36,291 and 0 sales.
- ANDREW WIEDERHORN purchased 1,000 shares for an estimated $4,499
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$FAT Hedge Fund Activity
We have seen 5 institutional investors add shares of $FAT stock to their portfolio, and 10 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- TD WATERHOUSE CANADA INC. removed 24,000 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $118,080
- FNY INVESTMENT ADVISERS, LLC added 16,069 shares (+inf%) to their portfolio in Q4 2024, for an estimated $85,487
- ROYAL BANK OF CANADA removed 10,212 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $50,243
- CAMBRIDGE INVESTMENT RESEARCH ADVISORS, INC. removed 2,556 shares (-14.8%) from their portfolio in Q3 2024, for an estimated $12,575
- MORGAN STANLEY added 1,520 shares (+56.4%) to their portfolio in Q3 2024, for an estimated $7,478
- RENAISSANCE TECHNOLOGIES LLC added 1,400 shares (+6.4%) to their portfolio in Q3 2024, for an estimated $6,888
- UBS GROUP AG removed 1,309 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $6,440
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
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 $2.2142, which will be adjusted downward immediately following the record date by an amount equal to the fair market value of the Twin Common Stock distributed to holders of FAT Brands Class A Common Stock, divided by the sum of all shares of FAT Brands Class A Common Stock outstanding on the record date plus the number of unexercised Warrants on the record date, but not below zero.
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 $20.00 per share for purposes of the Warrant adjustment, resulting in a downward adjustment of the Warrant exercise price in excess of $2.2142. As a result, we expect that the Warrant exercise price will be adjusted to zero immediately following the record date.
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
[email protected]
646-277-1224
Media Relations:
FAT Brands Inc.
Erin Mandzik
[email protected]
860-212-6509
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