DALLAS, Sept. 14, 2017 /PRNewswire/ -- 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.
Note Regarding Forward Looking Statements
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.
About RAVE Restaurant Group, Inc.
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.
RAVE Restaurant Group, Inc.
SOURCE RAVE Restaurant Group, Inc.