Chanticleer Holdings Inc (NASDAQ:BURG), the owner of several restaurant brands bought by a biotechnology company in October and then spun off again, announced its intention to apply for trading on the OTC Markets OTCQB Exchange.
On October 10, Chanticleer merged with Princeton-based biotech Sonnet BioTherapeutics Inc in a deal that saw shareholders of Sonnet become majority owners of Chanticleer stock, while the Better Burger restaurant group owner was spun off into an entity owned by Chanticleer shareholders.
Chanticleer previously traded on the Nasdaq under the ticker symbol BURG, but going forward, Sonnet has applied to change the symbol to SONN.
BURG shares rose 9.2% to $0.85 on Thursday.
READ: Chanticleer Holdings to merge with Sonnet BioTherapeutics as the burger company shifts to biotech
“We’ve made the decision to apply for the listing of the shares of the spin-off entity for public trading on the OTC Markets OTCQB Exchange to afford us increased optionality while providing shareholders of the spin-off entity with important liquidity,” CEO and Chairman Mike Pruitt said in a statement. “Our current shareholders will not only maintain their ongoing investment in the restaurant business but will also have potential upside from the anticipated growth and expansion of Sonnet.”
Charlotte-based Chanticleer owns and operates Burgers Grilled Right, Little Big Burger, American Burger Co, Just Fresh and a handful of Hooters locations.
“We continue to be optimistic in the direction of our Better Burger business and recent progress indicates that initiatives and investments over the last year are yielding measurable results,” Pruitt said. “We believe this new company platform in the spin-off entity will lead to reduced costs while affording us a balance sheet and overhead structure which is better suited for a growing restaurant company, both organically and through potential acquisitions.”
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