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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Securities registered pursuant to Section 12(b) of the Act:
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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
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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 25, 2022, 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 2022 to holders of its Class A Common Stock.
Record Date | Payment Date | Dividend per Share |
Ordinary Income | Capital Gain Income |
Return of Capital | |||||||||||||||||||||||||
| 2/15/2022 | 3/1/2022 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 5/16/2022 | 6/1/2022 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 8/16/2022 | 9/1/2022 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % | |||||||||||||||
| 11/15/2022 | 12/1/2022 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % | |||||||||||||||
| Total | $ | 0.54 | $ | - | - | % | $ | - | - | % | $ | 0.54 | 100.00 | % | ||||||||||||||||
On various dates during the fiscal year ending December 25, 2022, 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 2022 to holders of its Class B Common Stock.
Record Date | Payment Date | Dividend per Share |
Ordinary Income | Capital Gain Income |
Return of Capital | |||||||||||||||||||||||||
| 2/15/2022 | 3/1/2022 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 5/16/2022 | 6/1/2022 | $ | 0.13 | $ | - | - | % | $ | - | - | % | $ | 0.13 | 100.00 | % | |||||||||||||||
| 8/16/2022 | 9/1/2022 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % | |||||||||||||||
| 11/15/2022 | 12/1/2022 | $ | 0.14 | $ | - | - | % | $ | - | - | % | $ | 0.14 | 100.00 | % | |||||||||||||||
| Total | $ | 0.54 | $ | - | - | % | $ | - | - | % | $ | 0.54 | 100.00 | % | ||||||||||||||||
On various dates during the fiscal year ending December 25, 2022, 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 2022 to holders of its Series B Preferred Stock:
Record Date | Payment Date | Dividend per Share |
Ordinary Income | Capital Gain Income |
Return of Capital | |||||||||||||||||||||||||
| 1/10/2022 | 1/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 2/10/2022 | 2/21/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 3/10/2022 | 3/21/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 4/8/2022 | 4/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 5/10/2022 | 5/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 6/10/2022 | 6/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 7/8/2022 | 7/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 8/12/2022 | 8/22/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 9/9/2022 | 9/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 10/10/2022 | 10/20/2022 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 11/10/2021 | 11/21/2021 | $ | 0.171875 | $ | - | - | % | $ | - | - | % | $ | 0.171875 | 100.00 | % | |||||||||||||||
| 12/9/2021 | 12/20/2021 | $ | 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 25, 2022 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 | ||||||
| 2/15/2022 | $ | 3.64222 | $ | 0.1194 | ||||
| 5/16/2022 | $ | 3.52273 | $ | 0.1195 | ||||
| 8/16/2022 | $ | 3.39386 | $ | 0.1289 | ||||
| 11/15/2022 | $ | 3.26496 | $ | 0.1289 | ||||
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: December 23, 2022
| FAT Brands Inc. | ||
| By: | /s/ Kenneth J. Kuick | |
| Kenneth J. Kuick | ||
| Chief Financial Officer | ||
