ORLANDO, Fla., Jan. 15, 2021 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) today announced the closing of its previously announced underwritten registered public offering of shares of its 7.50% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share, at an offering price of $25.20 per share.

On January 14, 2021, the underwriters exercised part of their option to purchase additional shares and purchased an additional 314,934 shares of the Preferred Stock at the public offering price of $25.20 per share, resulting in approximately $7.7 million of additional net proceeds, after deducting the underwriting discount. After giving effect to the exercise of the option, the total number of shares of Preferred Stock sold by the Company in the offering increased to 3,291,125 shares and the estimated net proceeds after underwriting discounts and offering expenses are approximately $79.5 million.

The Company expects to use the net proceeds of this offering for general corporate purposes, including funding future acquisitions and investments.

About Franchise Group, Inc.

Franchise Group is an operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise Group’s business lines include Liberty Tax Service, Buddy’s Home Furnishings, American Freight and The Vitamin Shoppe. On a combined basis, Franchise Group currently operates over 4,000 locations predominantly located in the U.S. and Canada that are either Company-run or operated pursuant to franchising agreements.