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): January 12, 2024

 

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 31, 2023, 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 2023 to holders of its Class A Common Stock.

 

Record Date		Payment Date		Dividend per Share				Ordinary Income								Capital Gain Income								Return of Capital
2/15/2023		3/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
5/15/2023		6/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
8/15/2023		9/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
11/15/2023		12/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
Total				$	0.56			$	-				-	%		$	-				-	%		$	0.56				100.00	%

 

On various dates during the fiscal year ending December 31, 2023, 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 2023 to holders of its Class B Common Stock.

 

Record Date		Payment Date		Dividend per Share				Ordinary Income								Capital Gain Income								Return of Capital
2/15/2023		3/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
5/15/2023		6/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
8/15/2023		9/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
11/15/2023		12/1/2023		$	0.14			$	-				-	%		$	-				-	%		$	0.14				100.00	%
Total				$	0.56			$	-				-	%		$	-				-	%		$	0.56				100.00	%

 

On various dates during the fiscal year ending December 31, 2023, 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 2023 to holders of its Series B Preferred Stock:

 

Record Date		Payment Date		Dividend per Share				Ordinary Income								Capital Gain Income								Return of Capital
1/10/2023		1/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
2/10/2023		2/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
3/10/2023		3/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
4/10/2023		4/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
5/10/2023		5/22/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
6/9/2023		6/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
7/10/2023		7/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
8/10/2023		8/21/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
9/8/2023		9/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
10/10/2023		10/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
11/10/2023		11/20/2023		$	0.171875			$	-				-	%		$	-				-	%		$	0.171875				100.00	%
12/8/2023		12/20/2023		$	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 31, 2023 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 Exercise Price per share				Amount of Adjustment per share
2/15/2023		$	3.1359			$	0.1291
5/15/2023		$	3.0064			$	0.1295
8/15/2023		$	2.8773			$	0.1291
11/15/2023		$	2.7451			$	0.1322

 

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 12, 2024

 

	FAT Brands Inc.
	By:	/s/ Kenneth J. Kuick
		Kenneth J. Kuick
		Chief Financial Officer