FCCG($2.80) firming of late; what's your view of this item from FAT's 7/3 8-K?
Entry into a Material Definitive Agreement.
On June 27, 2018, FAT Brands Inc. (the “ Company ”) entered into a Note Exchange Agreement under which it agreed with Fog Cutter Capital Group, Inc. (the “ Holder ”) to exchange the remaining balance of the Company’s outstanding Promissory Note issued to the Holder on October 20, 2017, in the original principal amount of $30,000,000 (the “ Note ”). The Note has an estimated outstanding balance of principal plus accrued interest of $9,844,411 (the “ Note Balance ”).
The Holder agreed to cancel the Note as of June 27, 2018, and the Note Balance will be exchanged for shares of capital stock of the Company in the following amounts (the “ Exchange Shares ”):
? $2,000,000 of the Note Balance will be exchanged for 20,000 shares of Series A Fixed Rate Cumulative Preferred Stock of the Company at $100 per share; and
? The remaining Note Balance of $7,844,411 will be exchanged for 1,067,266 shares of Common Stock of the Company, representing an exchange price of $7.35 per share, which was the closing trading price of the Common Stock on June 26, 2018. Such number of shares will be trued up based on the final Note balance as of June 27, 2018, once the Company releases its quarterly financial statements for the quarter ending July 1, 2018.
"The best way to get what you want is to deserve what you want." --Charlie Munger
