BBQ Holdings Completes Private Investment In Public Entity Transaction

BBQ Holdings received total gross proceeds of $13 million, before deducting placement agent fees and offering expenses.

The investment was made by Nantahala Capital Management, LLC and/or its affiliates. The Company expects to use the proceeds from the offering for growth initiatives.

Craig-Hallum Capital Group, LLC served as placement agents for the financing.

LathropGPM provided legal services to the Company.

"I couldn't be more thrilled about the partnership with Nantahala Capital Management and am grateful for all of their work during this process," said Jeff Crivello, CEO of BBQ Holdings, Inc. "We look forward to a mutually successful relationship and are excited about all the opportunities this investment brings to our brands."

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions' securities laws. The Company has agreed to file a registration statement with the U.S.

Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock sold in the private placement and the shares of common stock issuable upon exercise of the preferred stock.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Additional details regarding the private placement are included in a Form 8-K filed with the Securities and Exchange Commission on June 25, 2021.