Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

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Stockholders’ Equity
 9 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Stockholders’ Equity

10.   Stockholders’ Equity

 

Common stock

 

During the nine months ended June 30, 2021, the Company sold common stock of 7,454,238 shares under the at-the-market sales agreement discussed in Note 1 for gross proceeds of an aggregate of $15.9 million and net proceeds of $15.3 million. In addition, the Company issued 127,880 shares of common stock upon the vesting of restricted stock units.

 

Prior to the Merger, during the six months ended March 31, 2020, the Company sold 186,075 shares of common stock and issued warrants to purchase 93,038 shares of common stock with an exercise price of $29.32 per share for net proceeds of $4.1 million. In addition, the Company issued 8,526 shares of common stock upon conversion of outstanding promissory notes with an outstanding principal balance of $0.2 million at the time of conversion.

 

Upon consummation of the Merger, the Company issued 547,639 common shares and 206,371 warrants to legacy Chanticleer shareholders. The warrants are to purchase shares of common stock with exercise prices ranging from $0.01 per share to $1,820 per share and a weighted average exercise price of $26.60 per share.

 

On April 1, 2020, the Company sold 1,699,232 shares of common stock to new investors for net proceeds of $15 million in a private placement. The new investors also received 3,300,066 Series A warrants with an exercise price of $5.3976 and 2,247,726 Series B warrants with an exercise price of $0.0001. An advisor for the private placement was issued 453,128 shares of common stock.

 

The Company issued 757,933 shares to acquire the nets assets of Relief (see Note 4).

 

Common stock warrants

 

As of June 30, 2021, the following equity-classified warrants and related terms were outstanding:

 

    Warrants Outstanding     Exercise Price     Expiration Date
Warrants     105,812     $ 29.32     October 1, 2022 - March 10, 2023
Chanticleer warrants     17,760     $ 58.50 - $91.00     April 30, 2027 - December 17, 2028
Series B warrants     42,373     $ 0.0001     April 16, 2025
Series C warrants     11,329,463     $ 3.19     October 16, 2025
      11,495,408              

 

During the nine months ended June 30, 2021, the Series B warrant holders exercised 23,863 warrants for proceeds of $2. An additional 2,242,427 of Series B warrants were net share settled, resulting in the issuance of 2,242,339 shares of common stock.

 

During the nine months ended June 30, 2021, the Chanticleer warrants to purchase 186,161 shares of common stock with an exercise price of $0.01 per share were net share settled, resulting in the issuance of 185,422 shares of common stock.