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Franchise Group Prices 4.2M Share Common Stock Offering At $23.25

VIRGINIA BEACH, Va., June 26, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ:FRG) (“Franchise Group” or the “Company”) announced today the upsizing and pricing of its previously announced

Benzinga · -

VIRGINIA BEACH, Va., June 26, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ:FRG) (“Franchise Group” or the “Company”) announced today the upsizing and pricing of its previously announced underwritten public offering of 4,200,000 shares of its common stock at a public offering price of $23.25 per share, for an aggregate offering amount of $97,650,000. The size of the offering was increased from the previously announced 3,500,000 shares of common stock. In addition, the Company has granted the underwriters a 30-day option to purchase up to 630,000 additional shares of common stock at the public offering price, less underwriting discounts and commissions.

The estimated net proceeds of the offering after underwriting discounts and offering expenses are approximately $92 million or approximately $106 million assuming the underwriters fully exercise their option to purchase additional shares. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

B. Riley FBR, Inc. is serving as the lead book-running manager in the offering. Stephens Inc. is also serving as a book-running manager in the offering. Barrington Research Associates, Inc., CJS Securities, Inc. and National Securities Corporation are serving as co-managers in the 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 may be made only by means of a prospectus and prospectus supplement. A preliminary prospectus supplement and the accompanying base prospectus relating to the offering have been filed with the SEC and are available on the website of the SEC at http://www.sec.gov. A final prospectus supplement and the accompanying base prospectus will be filed with the SEC, copies of which may be obtained, when available, from the website of the SEC at http://www.sec.gov or by contacting: B. Riley FBR, Inc., 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, Attn: Prospectus Department, Email: prospectuses@brileyfbr.com, Telephone: (703) 312-9580. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.