As of December 31, 2023, were there any outstanding shares of Benihana preferred stock?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
022, the Company purchased 1.2 million and 1.1 million shares for aggregate consideration of $7.9 million and $7.1 million, respectively. As of December 31, 2023, the Company had completed the repurchase program.
Warrants
During 2023, warrants to purchase 125,000 shares of common stock at an exercise price of $1.63 per share were exercised. There were no warrants outstanding as of December 31, 2023.
Dividends
The issuance of a dividend is dependent on a variety of factors, including but not limited to, available cash and the overall financi
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company had the authorization to issue up to 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 giving them superior rights over common shareholders regarding liquidation, dividend preference, voting, and other rights. However, as of December 31, 2023, the Board had not designated these rights.
As of December 31, 2023, there were no outstanding shares of preferred stock. This means that Benihana had not issued any preferred stock to investors or other parties.
For a potential franchisee, this information indicates that the company has the option to issue preferred stock in the future, which could impact the ownership structure and financial obligations of the company. However, the fact that there are currently no outstanding shares of preferred stock may be viewed positively, as it simplifies the current capital structure.