In a remarkable development, BurgerFi International, Inc. BFI BFIIW, often referred to as “Upstate McDonald’s,” saw its stock surge by a staggering 93% in pre-market trading on Friday. This significant spike followed the news of the company’s lawsuit settlement with Lion Point Capital, LP.
What Happened: BurgerFi’s BFI was trading almost 93% higher on Friday during the pre-market at $0.4120 after closing at $0.2131 on Thursday while BFIIW was trading 86.72% higher at $.045 as compared to previous day’s close at $0.024, according to Benzinga Pro.
The lawsuit was filed by Lion Point on Aug. 26, 2022, alleging that the operator of Anthony's Coal Fired Pizza & Wings and the BurgerFi brand had violated their agreement by failing to register its shares in a timely manner. The settlement, which does not include any admission of fault by either party, is designed to avoid further litigation costs and risks.
As part of the settlement, BurgerFi will pay Lion Point $1,350,000 in scheduled installments and issue 300,000 shares of Series A Preferred Stock. David Heidecorn, Chairman of the Board of BurgerFi, expressed relief at resolving the matter and stated the company’s focus on exploring strategic alternatives for the benefit of stakeholders.
Why It Matters: BurgerFi is recognized for its fast-casual “better burger” concept and premium-casual dining restaurants. The company operates 162 locations, including 60 Anthony's restaurants and 102 BurgerFi restaurants. The company has received various accolades, such as “The Very Best Burger” at the 2023 SOBE Wine and Food Festival and “Best Fast Casual Restaurant” in USA Today’s 10Best 2023 Readers’ Choice Awards.
Read Next:
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
Image via Tampa Bay Rays
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
