Charlotte-based Hooters operator Chanticleer Holdings said it has raised $1.6 million through a private offering of its shares and will use the funding for new restaurants.
In the announcement Thursday, Chanticleer said the deal involves 11 investors and roughly 426,667 shares sold for $3.75 a piece. The investors were not named in documents filed with regulators, and the company declined to disclose them to the Observer.
The Hooters franchisee’s business strategy involves opening and operating the restaurants, known for their provocatively dressed female servers, outside of the U.S. The raising of $1.6 million comes as the company is seeking to open more Hooters locations to reach profitability. Expenses associated with its Hooters locations have contributed to losses for Chanticleer.
“As we continue on our aggressive growth plan, it pleases me to know that new shareholders see value in our long-term growth strategy,” CEO Mike Pruitt said in a statement.
Pruitt has previously said Chanticleer will need to roughly double its Hooters locations to overcome the costs of being public.
The six Hooters in which Chanticleer has ownership and operates are in South Africa, Australia and Hungary. It also has expansion plans for Brazil and has signed a letter of intent to acquire a Hooters in Nottingham, England.
This month, Chanticleer said it finalized its purchase of Charlotte-based American Roadside Burgers, its first venture outside of Hooters. Chanticleer has said it is considering opening American Roadside locations in other countries, as well as in the U.S.
Chanticleer also has a minority stake in Hooters of America, the Atlanta-based operator and franchiser of about 430 Hooters in 28 countries.
Roberts: 704-358-5248; Twitter: @DeonERoberts
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