Note 17 - Stockholders’ Equity

Common Stock

The Company is authorized by its amended and restated certificate of corporation to issue up to 75.0 million shares of common stock, par value $0.0001 per share. As of December 31, 2017 and 2016, there are 27.2 million and 25.1 million shares outstanding, respectively.

The Company issued warrants to purchase 5.8 million shares of common stock at an exercise price of $5.00 per share in connection with the Company’s initial public offering. These warrants expired on February 27, 2016. As a result of the expiration of these warrants, an aggregate of 1.4 million shares of common stock were forfeited and such shares were canceled.

On January 19, 2016, the Company commenced a rights offering (the “Rights Offering”) of non-transferable subscription rights to holders of record of its common stock as of January 15, 2016 to purchase up to 1,454,545 shares of common stock. The Company granted holders of its common stock non-transferable subscription rights to purchase one share of common stock at a subscription price of $2.75 per share. Each holder received one subscription right for each 17.16861 shares of common stock owned on January 15, 2016. Each subscription right entitled its holder to purchase one share of common stock at the subscription price. The Rights Offering which closed on February 9, 2016, generated approximately $4.0 million in gross proceeds before deducting offering expenses. The Company issued a total of 1,454,545 shares of common stock at $2.75 per share. Net proceeds from the Rights Offering of $3.8 million were used by the Company to primarily fund the planned development of future STK restaurants.

On November 15, 2017, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain investors named therein, pursuant to which the Company agreed to issue and sell, in a registered direct offering by the Company, an aggregate of 1.75 million shares of its common stock, at an offering price of $1.50 per share, for gross proceeds of approximately $2.6 million before deducting offering expenses. In a concurrent private placement, the Company agreed to issue warrants to the investors who participated in such transaction (See Note 14).

The issuance of a dividend is dependent on a variety of factors, including but not limited to, available cash and the overall financial condition of the Company. The issuance of a dividend is also subject to legal restrictions and the terms of our credit agreements with BankUnited.

Preferred Stock