UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 16, 2022
FAT Brands Inc.
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 001-38250 | 82-1302696 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
9720 Wilshire Blvd., Suite 500 Beverly Hills, CA |
90212 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (310) 319-1850
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) |
Name of each exchange on which registered | ||
| Class A Common Stock | FAT | The Nasdaq Stock Market LLC | ||
| Class B Common Stock | FATBB | The Nasdaq Stock Market LLC | ||
| Series B Cumulative Preferred Stock | FATBP | The Nasdaq Stock Market LLC | ||
| Warrants to purchase Class A Common Stock | FATBW | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events.
On various dates during the fiscal year ending December 26, 2021, FAT Brands Inc. (the “Company”) declared and paid quarterly cash dividends on its Class A Common Stock (CUSIP 30258N105). The table below summarizes the income tax treatment of each cash dividend paid by the Company in fiscal 2021 to holders of its Class A Common Stock.
Record Date | Payment Date | Dividend per Share |
Ordinary Income | Capital Gain Income |
Return of Capital | |||||||||||||||||||||||||
| 5/3/2021 | 5/7/2021 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 6/14/2021 | 6/21/2021 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 9/6/2021 | 9/15/2021 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 11/17/2021 | 12/1/2021 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| Total | $ | 0.52 | $ | - | - | % | $ | - | - | % | $ | 0.52 | 100.00 | % | ||||||||||||||||
On various dates during the fiscal year ending December 26, 2021, the Company declared and paid quarterly cash dividends on its Class B Common Stock (CUSIP 30258N600). The table below summarizes the income tax treatment of each cash dividend paid by the Company in fiscal 2021 to holders of its Class B Common Stock.
Record Date | Payment Date | Dividend per Share |
Ordinary Income | Capital Gain Income |
Return of Capital | |||||||||||||||||||||||||
| 9/6/2021 | 9/15/2021 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 11/17/2021 | 12/1/2021 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| Total | $ | 0.26 | $ | - | - | % | $ | - | - | % | $ | 0.26 | 100.00 | % | ||||||||||||||||
On various dates during the fiscal year ending December 26, 2021, the Company declared and paid monthly cash dividends on its 8.25% Series B Cumulative Preferred Stock (CUSIP 30258N501) (“Series B Preferred Stock”). The table below summarizes the income tax treatment of each cash dividend paid by the Company in fiscal 2021 to holders of its Series B Preferred Stock:
Record Date | Payment Date | Dividend per Share |
Ordinary Income | Capital Gain Income |
Return of Capital | |||||||||||||||||||||||||
| 1/13/2021 | 1/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 2/10/2021 | 2/22/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 3/10/2021 | 3/22/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 4/10/2021 | 4/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 5/10/2021 | 5/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 6/10/2021 | 6/21/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 7/10/2021 | 7/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 8/10/2021 | 8/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 9/10/2021 | 9/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 10/8/2021 | 10/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 11/12/2021 | 11/22/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 12/10/2021 | 12/20/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| Total | $ | 2.060000 | $ | - | - | % | $ | - | - | % | $ | 2.060000 | 100.00 | % | ||||||||||||||||
As a result of the above-referenced cash dividends paid on the Company’s Class A Common Stock, and a non-taxable distribution paid on August 23, 2021 consisting of 0.10 shares of Class B Common Stock for each outstanding share of Class A Common Stock held of record on August 16, 2021, on various dates during the fiscal year ending December 26, 2021 the Company reduced the exercise price of its outstanding Warrants to purchase Class A Common Stock (CUSIP 30258N121) (the “Warrants”). The Warrants were originally exercisable for an exercise price of $5.00 per share. The table below summarizes the adjusted exercise price per share of the Warrants on each adjustment date, and the fair market value of each adjustment for U.S. federal income tax purposes under I.R.C. Section 305(c).
| Adjustment Date | Adjusted Exercise Price per share | FMV of Adjustment per share | ||||||
5/3/2021 | $ | 4.8867 | $ | 0.112065 | ||||
6/14/2021 | $ | 4.7727 | $ | 0.113308 | ||||
8/16/2021 | $ | 3.9992 | $ | 0.768712 | ||||
9/6/2021 | $ | 3.8809 | $ | 0.043518 | ||||
11/17/2021 | $ | 3.7616 | $ | 0.079757 | ||||
The Company encourages each holder of Class A Common Stock, Class B Common Stock, Series B Preferred Stock and Warrants to consult with their own tax advisors with respect to the federal, state, local and foreign income tax effects of these dividends and adjustments.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: February 16, 2022
| FAT Brands Inc. | ||
| By: | /s/ Kenneth J. Kuick | |
| Kenneth J. Kuick | ||
| Chief Financial Officer | ||