BurgerFi International (NASDAQ: BFI) stock soared during intraday trading after the company reached a legal settlement with Lion Point Capital.
Last Thursday, BurgerFi International reached a settlement agreement with Lion Point Capital, LP regarding a lawsuit over share registration rights. Under the terms of the agreement, BurgerFi agreed to pay Lion Point $1.35 million in scheduled installments and issue 300,000 shares of Series A Preferred Stock.
The lawsuit, filed by Lion Point on August 26, 2022, alleged that BurgerFi failed to register its shares on time, which constituted a breach of their agreement. The settlement, which includes no admission of fault by either party, aims to avoid further litigation costs and risks.
David Heidecorn, Chairman of the Board, expressed relief at the resolution and stated,
“We intend to continue to explore strategic alternatives that we believe would be in the best interests of the Company and its stakeholders, as previously disclosed.”
In addition to the settlement, BurgerFi International announced a strategic move to comply with Nasdaq regulations. As of July 24, 2024, the company transitioned from the Nasdaq Global Market to the Nasdaq Capital Market.
This change comes after Nasdaq granted BurgerFi a second 180-day grace period to meet the minimum $1.00 bid price requirement, extending the deadline to January 20, 2025. The company received the initial notification of non-compliance on January 23, 2024, when its stock closed below the $1.00 threshold for 30 consecutive business days.
BurgerFi (NASDAQ: BFI) Stock Reaction
BFI stock surged 97.32% on Friday, closing at $0.4205, marking a 109.20% increase for the week. The trading volume was 313,590,880 shares, significantly higher than the average daily volume of 5.64 million.
