Muscle Maker Grill has filed a post qualification offering circular with the Securities and Exchange Commission (SEC) indicating its intent to list on OTCQX Marketplace under the symbol of MMB after the Reg A+ crowdfunding round closes. This is a change from previous communications where Muscle Maker said it would most likely list shares on the NYSE.
The filing with the SEC states:
“This Post-Qualification Offering Circular Amendment No. 2 primarily relates to the Company’s decision (i) to apply for quotation of its common stock on the OTCQX Marketplace under the symbol “MMB” after qualification of this Post-Qualification Offering Circular Amendment No. 2 by the Securities and Exchange Commission (the “SEC”), and (ii) not to list the Company’s common stock on the NYSE American at this time. The Company intends to register its common stock under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) following qualification of this Post-Qualification Offering Circular Amendment No. 2 by the SEC. There is no assurance that the common stock will be registered under the Exchange Act or that the Company’s common stock will be accepted for quotation on the OTCQX Marketplace under the symbol “MMB” after the qualification of this Post-Qualification Offering Circular Amendment No. 2 by the SEC.”
Muscle Maker Grill has been raising capital via Banq, part of Tripoint Global -an investment banking firm. The Muscle Maker offering will officially close on March 29th but the offer has already stated it is no longer receiving additional money.
Muscle Maker is a chain of fast casual restaurants that focuses on healthy food in a market where more people are becoming sensitive to the quality of ingredients consumed as they move away from traditional fast food and low quality fast casual restaurants. The offering set a pre-money valuation on the restaurant group of $25.1 million. The Reg A+ crowdfunding round sought just under $10 million in growth capital.
So what is the difference between listing on the NYSE and OTC Markets. For one thing cost. For an issuer listing on an ATS (Automated Trading System) versus an full blown exchange will cost substantially less for the issuer (and hence the investor as well). On the flip side, trading shares on the NYSE provides perhaps more prestige for the issuer. Individuals will still be able to trade shares exactly the same.
Muscle Maker should reveal the details of the funding round, including total amount raised, later this week.
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