In a remarkable development, BurgerFi International, Inc. (NASDAQ:BFI) (NASDAQ:BFIIW), often referred to as âUpstate McDonaldâs,â saw its stock surge by a staggering 93% in pre-market trading on Friday. This significant spike followed the news of the companyâs lawsuit settlement with Lion Point Capital, LP.
What Happened: BurgerFiâs BFI was trading almost 93% higher on Friday during the pre-market at $0.4120 after closing at $0.2131 on Thursday while BFIIW was trading 86.72% higher at $.045 as compared to previous dayâs close at $0.024, according to Benzinga Pro.
The lawsuit was filed by Lion Point on Aug. 26, 2022, alleging that the operator of Anthony’s Coal Fired Pizza & Wings and the BurgerFi brand had violated their agreement by failing to register its shares in a timely manner. The settlement, which does not include any admission of fault by either party, is designed to avoid further litigation costs and risks.
As part of the settlement, BurgerFi will pay Lion Point $1,350,000 in scheduled installments and issue 300,000 shares of Series A Preferred Stock. David Heidecorn, Chairman of the Board of BurgerFi, expressed relief at resolving the matter and stated the companyâs focus on exploring strategic alternatives for the benefit of stakeholders.
Why It Matters: BurgerFi is recognized for its fast-casual âbetter burgerâ concept and premium-casual dining restaurants. The company operates 162 locations, including 60 Anthony’s restaurants and 102 BurgerFi restaurants. The company has received various accolades, such as âThe Very Best Burgerâ at the 2023 SOBE Wine and Food Festival and âBest Fast Casual Restaurantâ in USA Todayâs 10Best 2023 Readersâ Choice Awards.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
Image via Tampa Bay Rays