Franchise Group, Inc. Prices $30 Million Offering of Series A Cumulative Perpetual Preferred Stock

ORLANDO, Fla., Sept. 16, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) today announced the pricing of its underwritten registered public offering of 1,200,000 shares of 7.50% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share (the “Preferred Stock”) at an initial public offering price of $25.00 per share, raising gross proceeds of $30 million before deducting underwriting discounts, the structuring fee and other estimated offering expenses.

In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 180,000 shares of Preferred Stock. The offering is expected to close on or about September 18, 2020, subject to customary closing conditions.

The Company’s shares of Preferred Stock are expected to begin trading on NASDAQ under the symbol “FRGAP” within 30 business days of the closing date of this offering, if approved.

Net proceeds of this offering will be used for general corporate purposes, including funding future acquisitions and investments.

B. Riley Securities, Inc., Incapital LLC, D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc. (Nasdaq:NHLD) and Aegis Capital Corp., are acting as book-running managers for this offering. The offering of these securities is being made pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission (the “SEC”) on January 31, 2020, and declared effective by the SEC on June 22, 2020.  The offering will be made only by means of a prospectus and prospectus supplement. A copy of the prospectus and prospectus supplement relating to these securities may be obtained, when available, from the website of the SEC at http://www.sec.gov or by contacting:  B. Riley Securities, Inc., 1300 17th Street North, Suite 1300, Arlington, Virginia  22209, Attn: Prospectus Department, Email: [e-mail], Telephone: [phone].