RAVE Restaurant Group, Inc. [NASDAQ: RAVE] today announced the successful completion of its shareholder rights offering. Shareholders exercised subscription rights to purchase all 3,571,429 shares of the Company’s shares of common stock offered at the subscription price of $1.40 per share, resulting in gross offering proceeds to the Company of $5.0 million. Shareholders exercised basic subscriptions for approximately $1.8 million of shares of common stock and over-subscriptions for the remaining approximately $3.2 million of share of common stock. Approximately $2.1 million in funds attributable to excess over-subscriptions will be returned to the subscribing shareholders by the subscription agent.
The Company intends to use the net proceeds of the rights offering to repay indebtedness, fund continued restaurant development activity and provide working capital for general corporate purposes.
Founded in 1958, Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] owns, operates and franchises more than 300 Pie Five Pizza Co. and Pizza Inn restaurants domestically and internationally. Pie Five Pizza Co. is a leader in the rapidly growing fast-casual pizza space offering made-to-order pizzas ready in under five minutes. Pizza Inn is an international chain featuring freshly made pizzas, along with salads, pastas, and desserts. The Company’s common stock is listed on the Nasdaq Capital Market under the symbol “RAVE”. For more information, please visit www.raverg.com.
