Stock Alert: FAT Brands Jumps 30% On Merger Deal With Fog Cutter Capital

(RTTNews) - Shares of micro-cap company FAT Brands Inc. (FAT) jumped 32% on Friday morning after the company said it agreed to combine with Fog Cutter Capital Group Inc., its controlling stockholder.

FAT is currently trading at $8.15, up $1.99 or 32.31%, on the Nasdaq.

FAT Brands, a multi-brand franchising company, acquires, develops, and markets fast casual and casual dining restaurant concepts.

FAT Brands expects the merger deal with Fog Cutter Capital will provide the company increased financial flexibility and simplified corporate structure.

CEO Andy Wiederhorn said, "We have taken a number of steps in 2020 to bolster our balance sheet and ensure that FAT Brands is as nimble and opportunistic as possible, especially in this environment. As we have disclosed in the past, FAT Brands has considered a combination with Fog Cutter as another step in our efforts to simplify our corporate structure and eliminate limitations that restrict our ability to use common stock for accretive acquisitions and capital raising."