8-K
Fat Brands, Inc (FATAQ)
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
Dateof Report (Date of earliest event reported): January 7, 2025
FATBrands Inc.
(Exactname of Registrant as Specified in Its Charter)
| Delaware | 001-38250 | 82-1302696 |
|---|---|---|
| (State or Other Jurisdiction<br><br> <br>of Incorporation) | (Commission<br><br> <br>File Number) | (IRS Employer<br><br> <br>Identification No.) |
| 9720 Wilshire Blvd., Suite 500<br><br> <br>Beverly Hills, CA | 90212 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’sTelephone Number, Including Area Code: (310) 319-1850
NotApplicable
(FormerName 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<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement<br> 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<br> of each class | Trading<br> Symbol(s) | Name<br> 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. ☐
Item8.01 Other Events.
On various dates during the fiscal year ending December 29, 2024, 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 2024 to holders of its Class A Common Stock.
| Record<br> <br>Date | Payment Date | Dividend per Share | ****<br><br>Ordinary Income | Capital Gain Income | ****<br><br>Return of Capital | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2/15/2024 | 3/1/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| 5/15/2024 | 5/31/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| 8/15/2024 | 8/30/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| 11/15/2024 | 11/29/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| Total | $ | 0.56 | $ | - | - | % | $ | - | - | % | $ | 0.56 | 100.00 | % |
On various dates during the fiscal year ending December 29, 2024, 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 2024 to holders of its Class B Common Stock.
| Record<br> <br>Date | Payment Date | Dividend per Share | ****<br><br>Ordinary Income | Capital Gain Income | ****<br><br>Return of Capital | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2/15/2024 | 3/1/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| 5/15/2024 | 5/31/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| 8/15/2024 | 8/30/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| 11/15/2024 | 11/29/2024 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % |
| Total | $ | 0.56 | $ | - | - | % | $ | - | - | % | $ | 0.56 | 100.00 | % |
On various dates during the fiscal year ending December 29, 2024, 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 2024 to holders of its Series B Preferred Stock:
| Record<br> <br>Date | Payment Date | Dividend per Share | ****<br><br>Ordinary Income | Capital Gain Income | ****<br><br>Return of Capital | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1/8/2024 | 1/22/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 2/9/2024 | 2/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 3/8/2024 | 3/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 4/10/2024 | 4/22/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 5/10/2024 | 5/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 6/10/2024 | 6/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 7/10/2024 | 7/22/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 8/9/2024 | 8/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 9/10/2024 | 9/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 10/10/2024 | 10/21/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 11/8/2024 | 11/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| 12/10/2024 | 12/20/2024 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % |
| Total | $ | 2.062500 | $ | - | - | % | $ | - | - | % | $ | 2.062500 | 100.00 | % |
As a result of the above-referenced cash dividends paid on the Company’s Class A Common Stock, on various dates during the fiscal year ending December 29, 2024 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 amount of each adjustment.
| Adjustment Date | Adjusted<br><br> <br>Exercise Price<br><br> <br>per share | Amount of<br><br> <br>Adjustment per<br><br> <br>share | ||
|---|---|---|---|---|
| 2/15/2024 | $ | 2.6130 | $ | 0.1321 |
| 5/15/2024 | $ | 2.4806 | $ | 0.1324 |
| 8/15/2024 | $ | 2.3479 | $ | 0.1327 |
| 11/15/2024 | $ | 2.2142 | $ | 0.1337 |
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: January 7, 2025
| FAT Brands Inc. | |
|---|---|
| By: | /s/ Kenneth J. Kuick |
| Kenneth<br> J. Kuick | |
| Chief<br> Financial Officer |