Chanticleer Holdings Inc (NASDAQ:HOTR) will be acquiring BGR: The Burger Joint which is a popular chain in the Washington, D.C. region. The acquisition is expected to be completed by mid-March. BGR is a very popular chain that utilizes their proprietary dry-aged burgers cooked over an open grill. They use fresh buns baked by local bakeries an only fresh vegetables. It was voted the #1 burger chain in the D.C. area by tow publications, the Washingtonian and the Washington Post. They have 9 corporate owned locations and eleven franchise including one in Kuwait. They also have over 80 franchises under development both domestic and internationally.
The shops are based on the fast-casual concept and it focuses on offering a premium burger that uses only prime meat. Chanticleer Holdings Inc (NASDAQ:HOTR) has been looking to expand further into the premium burger niche and this acquisition allows them to do so quickly and efficiently without a large portion of start-up costs. The current management and operations team will be retained also. BGR adds an established fast-casual operation to the current portfolio of Chanticleer.
Share Rights Offering
Chanticleer Holdings Inc (NASDAQ:HOTR) also priced its recent Rights Offering which allows any shareholder of record to purchase one share of the company’s stock for $2 for every share they currently own. The offering will be executed through a dividend and is in the form of a non-transferable subscription. Subscriptions rights must be execute by 2/26/14 or be void. The deal has already been approved by the SEC.
Chanticleer Holdings Inc (NASDAQ:HOTR) is headquartered in Virginia and offers franchising opportunities along with corporate ownership scenarios. It philosophy is fresh first and only uses the highest grade of prime beef for its menu offerings. The main feature is an open-grill concept that adds flavor and smokiness to the burger and other menu offerings.
The issue is just under resistance at $2.80. It tried to break through and failed which may indicate technical weakness in the stock. Support is at $2.05.