Red Robin Gourmet Burgers-inc Announces $8.3M investment and appoints new independent Directors

An additional $8.3 million investment from Jumana Capital and JCP Investment Management was proclaimed by Red Robin Gourmet Burgers. inc to reduce debt and support its growth procedure.

The company announced two board members Christopher Martin and James C. Pappas, joined, bringing industry and financial expertise. This fund will be used to decrease the debt and operational costs, potentially including selective restaurant franchising. This imitates the confidence in Red Robin’s revitalization plans and aims to support the brand for long-term growth.

The board was extended to 10 directors by Red Robin, with James C. Pappas and Christopher Martin now added as independent members. Chairman David A. Pace emphasized their wide industry and financial expertise, highlighting their roles in supporting Red Robin’s revitalization and strategy execution. The move reflects confidence in the company’s comeback plan and long-term vision.

Red Robin goes into a private placement agreement, selling 1,600,909 shares of common stock at $5.19 per share, flying approximately $8.3 million. The proceeds will be used to reduce debt and cover general corporate expenses, firming up the company’s financial position.

More details about Red Robin’s equity purchase agreement and private placement are available in the company’s Form 8-K filed with the Securities and Exchange Commission.