CHARLOTTE, N.C. (AP) -- Chanticleer Holdings Inc., a franchisee of Hooters restaurants, priced a public offering of 2.4 million units on Thursday.
The units, which consist of one share of common stock and one warrant to purchase a share of common stock, will be sold for $4.50 each. The units will begin trading on the Nasdaq on June 21 under the symbol "HOTRU". When separately transferable, the warrants will trade on the Nasdaq under the symbol "HOTRW".
As part of this plan, Chanticleer's common stock, which formerly traded over the counter, began trading on the Nasdaq Thursday under the symbol "HOTR".
Chanticleer is selling all the units in the offering and expects gross proceeds of approximately $11 million. It plans to use proceeds to add Hooters restaurant franchises overseas, pay off debt and for general corporate working capital.
Merriman Capital Inc. and Dawson James Securities Inc. acted as joint book runners in the offering.
Chanticleer and a group of private equity investors acquired Hooters of America in 2011. Hooters of America, in which Chanticleer is a minority holder, operates more than 450 Hooters restaurants in 44 states and 28 foreign countries.
Chanticleer said it has the rights to develop Hooters restaurants in South Africa and has a joint venture agreement with a current franchisee in Australia. It also has franchise rights to develop restaurants in Hungary and parts of Brazil, and it is evaluating other international opportunities.
The company's shares fell $3.40, or nearly 43 percent, to $4.60 in midday trading. Over the past year, the stock has traded between $4 and $10.