Authorization

Franchise Group, Inc. Closes Preferred Stock Offering

ORLANDO, Sept. 18, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (a??Franchise Groupa?? or the a??Companya??) today announced the closing of its previously announced underwritten registered public offering of 1,200,000 shares of its 7.50% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share (the a??Preferred Stocka??), at an initial public offering price of $25.00 per share. The offering resulted in net proceeds of approximatelyA $29.1 millionA after deducting underwriting discounts and commissions, but before deducting expenses and the structuring fee. The Company expects to use the net proceeds of this offering for general corporate purposes, including funding future acquisitions and investments.
The underwriters have a 30-day option to purchase up to an additional 180,000 shares of the Preferred Stock at the public offering price ofA $25.00 per share. Dividends on the Preferred Stock will be paid when declared by the Companya??s Board of Directors at a fixed rate of 7.50% of the $25.00 liquidation preference per year, equivalent to $1.875 per year. Shares of the Preferred Stock are expected to be listed on NASDAQ under the symbol a??FRGAPa?? and are expected to begin trading within 30 business days.B.A Riley Securities, Inc.,A Incapital LLC,A D.A. Davidson & Co.,A Janney Montgomery Scott LLC,A Ladenburg Thalmann & Co. Inc.A andA National Securities Corporation, a wholly owned subsidiary ofA National Holdings, Inc.A (Nasdaq:NHLD) and Aegis Capital Corp., acted as book-running managers for this offering.Troutman Pepper Hamilton Sanders LLP acted as legal counsel to the Company.A Duane MorrisA LLP acted as legal counsel to the underwriters.The offering of these securities was made pursuant to an effective shelf registration statement on Form S-3, which was initially filed with theA Securities and Exchange CommissionA (the a??SECa??) onA January 31, 2020,A and declared effective by theA SECA onA June 22, 2020. The offering will be made only by means of a prospectus and prospectus supplement. A copy of the prospectus and prospectus supplement relating to these securities may be obtained from the website of theA SECA atA https://www.sec.govA or by contacting: B. Riley Securities, Inc.,A 1300 17th Street North, Suite 1300,A Arlington, Virginia 22209, Attn: Prospectus Department, Email:A prospectuses@brileyfin.com, Telephone:A (703) 312-9580.A 
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