FAT Brands

FAT Brands Readies Close of $24M APO after One Week

Fast-casual dining franchise company FAT Brands expects to close it’s week-old $24 million Reg A offering today, according to company insiders. The quick closing follows reports that the company attracted millions of committed capital on its first day after the Securities and Exchange Commission qualified the offering on October 3. The owner of Fatburger and Buffalo’s Café is selling two million shares at $12, with a minimum investment of $500, from institutional and retail investors. The deal is being sold by Tripoint Global Securities as the exclusive bookrunner.

Fatburger 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 was founded in Roswell, Ga. in 1985, and is known for its chicken wings with 13 different sauces.

FAT Brands is controlled by Andy Wiederhorn, head of the investment firm Fog Cutter Capital Group. The Southern California burger joint, often touted by Hollywood celebrities, was started by Lovie Yancey and Charles Simpson. Yancey first opened a three-seater burger stand in the late 1940s in front of her house in South Central Los Angeles.

Wiederhorn first invested in Fatburger in 2003, when Fog Cutter financed an $8 million management buyout of a group of celebrity investors including former pro basketball player Earvin "Magic" Johnson Jr. In 2006, Fog Cutter Capital invested an additional $5 million in Fatburger, and increased its voting control to 82%, according to SEC filings. In total Fog Cutter has invested near $30 million in the franchisor and currently controls 80% of FAT Brands’ outstanding shares. CLICK HEADLINE FOR MORE>>

Zacks Small Cap Research Head and Banker Charged with Insider Trading

The broker-dealer division of Chicago-based Zacks Investment Research, has been charged by the Securities and Exchange Commission for failure to supervise staff who traded on non-public material information. The action is a blow to the nascent Reg A research market, where Zacks has been the first and only traditional sell-side broker to offer equity research on Reg A issuers.

Arcimoto

Second Ultra-light Carmaker Seeks to Tap Reg A Market

An Oregon-based concept car company has been qualified by the Securities and Exchange Commission to raise $29.9 million through a Tier 2 Regulation A offering. Arcimoto is selling 4,600,000 shares at $6.50 through an exclusive underwriting agreement with WR Hambrecht + Co. The company plans to list on Nasdaq’s Capital Market.