Replies to post #43412 on Savvy Trades and Investments

[zenvesting]

FCCG: Looks like there's more FAT on the bone of each FCCG share than we originally thought, it looks like it's actually 1:1 now based on that PR, but it's going to need to be taken in smaller bites than what was happening last week.

It seems the poisoned pill dulled the appetite of the sharks that were feeding last week, but that fact it was only extended to October 2019 might also suggest the company plans a business combination transaction in the relative near term, like less than two years.

Still holding, the risk/reward looks better than originally calculated, but the affirmation that the poison pill is still out there might dampen the excitement while we wait for FCCG to realize the value of its 8 million FAT shares.

[zenvesting]

FCCG: The FAT Brands financing news yesterday was pretty interesting, especially considering the timing of the volume spike during the first week of January, one has to wonder if one of the underwriters or prospective investors got a deeper look into FCCG while underwriting this.

There's not much dilution of ownership, but definitely significant dilution of FAT cash flows.....but FCCG gets their loans paid back from the proceeds.

There's still a lot of fat in this valuation arbitrage IMO:

FAT Brands Inc. Announces Offering of Non-Convertible Preferred Stock and Warrants

12:49 PM ET 1/17/18 | BusinessWire

Preferred Structured to Appeal to Income Oriented Investors

LOS ANGELES--(BUSINESS WIRE)--January 17, 2018--

FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) ("FAT Brands" or the "Company"), a leading global restaurant franchising company, today announced the commencement of an offering of up to $50,000,000 of Units comprised of non-convertible preferred stock and common stock purchase warrants (the "Offering"). The Offering will be conducted as a general solicitation private placement solely to accredited investors.

The Company will offer up to 5,000 Units at $10,000 per Unit, with each Unit consisting of 100 Shares of Series A Fixed Rate/Floating Rate Cumulative Preferred Stock ("Preferred Shares") and 3 year Warrants to Purchase 185 shares of Common Stock (NASDAQ: FAT) at $18.00 per share. The Offering will close on a rolling basis, subject to customary closing conditions, commencing on or about January 31, 2018.

Investors in the Preferred Shares will receive quarterly cash dividends at a rate that increases from 8.0% to 13.0% per year, plus an additional dividend of 5.6% per year that will cumulate for the first three years and be payable on December 31, 2020. The Preferred Shares may be redeemed by the Company at 110% of liquidation preference plus accrued dividends in the first year after issuance, 105% in the second year after issuance, and 100% thereafter.

The Company intends to file a resale registration statement for the Preferred Shares and shares of Common Stock underlying the Warrants, and will seek to have the Preferred Shares quoted on the OTC Markets within 90 days of closing of the Offering.

TriPoint Global Equities, LLC, working with its online division BANQ(R) (www.banq.co), will act as the lead managing selling agent and sole bookrunner for the Offering. For additional information, please contact [e-mail].

The Company intends to use the net proceeds of the Offering for the previously announced acquisition of Hurricane Grill & Wings and the repayment of existing indebtedness, as well as for general working capital and future acquisitions.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual and casual dining restaurant concepts around the world. The Company currently owns five restaurant brands, Fatburger, Buffalo's Cafe, Buffalo's Express and Ponderosa & Bonanza Steakhouses, that have approximately 300 locations open and 300 under development in 32 countries. For more information, please visit www.fatbrands.com.