Form 4: Fat Brands Director Amends Stock Option Prices

Director Tyler Berchtold Child amended stock option prices at Fat Brands, Inc. on March 18, 2025.

Summary

• On March 18, 2025, Tyler Berchtold Child, a director at Fat Brands, Inc., amended the exercise prices of two outstanding stock option grants.
• The first amendment involved an option originally granted on May 4, 2023, reducing the exercise price by $2.599553 per share.
• This resulted in the deemed cancellation of the 'old' option and the grant of a replacement option for 30,636 shares with an exercise price of $2.95.
• The second amendment concerned an option initially granted on April 17, 2024, also reducing the exercise price by $2.599553 per share.
• This also resulted in the deemed cancellation of the 'old' option and the grant of a replacement option for 30,636 shares with an exercise price of $4.50.
• Both options vest in three equal annual installments starting on the first anniversary of their original grant dates.
• Following these transactions, Child directly owns 30,636 options with an exercise price of $2.95 and 30,636 options with an exercise price of $4.50.

Sentiment

Score: 5

Explanation: The document describes a routine transaction (stock option amendment) with no clear positive or negative implications.

Industry Context

Stock option grants and amendments are common practices in the restaurant and hospitality industry to incentivize and retain key personnel, aligning their interests with those of the shareholders.

Stakeholder Impact

• The amendment of stock options may have a minor impact on shareholders by potentially diluting equity if the options are exercised in the future.
• The amendment incentivizes the director, aligning their interests with the company's performance.

Key Dates

Keywords

stock options, Fat Brands, director, amendment, exercise price, beneficial ownership, Form 4