Chanticleer Holdings Inc (NASDAQ:HOTR), owner and operator of multiple restaurant brands internationally and domestically, today announced that its board of directors has approved a non-transferable rights offering which will allow its shareholders to acquire additional shares of common stock (the “rights offering”). The Company is planning to commence the rights offering in order to raise equity capital in a timely and cost-effective manner, while providing Chanticleer’s shareholders the opportunity to participate.

Chairman and CEO of Chanticleer Holdings, Mike Pruitt, stated, “The proceeds from this rights offering will be used to close the Little Big Burger acquisition and to increase our financial interest in Australia. Little Big Burger is a gourmet fast-casual restaurant concept with eight locations in Oregon which generated $6 million of net sales in 2014. Their unit economic model with EBITDA margin greater than 25% will be accretive to Chanticleer’s earnings and provide a great addition to our portfolio of brands. Additionally, increasing our interest in Australia will enable us to drive improved performance in that attractive market.”

Mr. Pruitt continued, “Although we believe that our current share price does not reflect the value of our Company, we believe that these are attractive opportunities and management and the board determined a rights offering to be the fairest and most efficient way to raise the funds to advance the Company while also best preserving our over $26.3 million net operating U.S. federal and state net operating loss carry-forwards.” (Original Source)

Shares of Chanticleer Holdings Inc opened today at $1.47 and are currently trading down at $1.36. HOTR has a 1-year high of $4.18 and a 1-year low of $1.22. The stock’s 50-day moving average is $2.27 and its 200-day moving average is $2.54.

Chanticleer Holdings Inc operates Hooters franchises internationally and several restaurant and bar concepts domestically. It is engaged in owning and operating fast casual dining concepts domestically and internationally.