As of December 31, 2022, did Benihana have any outstanding shares of preferred stock?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| | | | | | Shares available for purchase as of | | | | |---------------|--------------------------------------------|------------------------------|-------------------|-------|-------------------------------------|--------------|--|--| | | | | Warrants Exercise | | December 31, | December 31, | | | | Issuance date | Holder of warrants November 15, 2017 2017 Securities Purchase Agreement investors | Expiration date May 15, 2023 875,000 $ 1.63 | Issued | Price | 2022 125,000 | 2021 125,000 | | | 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 the Company's credit agreement. The Company did not issue dividends
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company is authorized to issue 10.0 million shares of preferred stock with a par value of $0.0001 per share. The Benihana Board of Directors has the authority to designate the rights, powers, and preferences of the preferred stock, potentially granting them superior rights over common shareholders regarding liquidation, dividend preference, voting, and other rights. However, as of December 31, 2022, the Board had not yet designated the rights of the preferred stock.
As of December 31, 2022, Benihana had no outstanding shares of preferred stock. This means that while the option to issue preferred stock exists, Benihana had not yet done so at that time.
For a prospective franchisee, this information indicates that Benihana has the flexibility to issue preferred stock in the future, which could potentially impact the financial structure of the company. However, the fact that no preferred stock was outstanding as of December 31, 2022, suggests that Benihana has not relied on this type of financing in the recent past.