With the fast food industry taking a hit from coronavirus, Shake Shack Inc. (SHAK) has raised $140 million in a public offering and established a $75 million at-the-market facility, returning an emergency government loan a day later.
The return of the emergency loan was announced on Monday, April 20, in a blog post in which the company insisted it was returning the $10 million loan because it believed smaller businesses have a greater need for capital. The funds will not actually be available to smaller businesses until Congress approves new loan funds.
While ATMs are often not initially–or ever–used, Shake Shack immediately tapped the ATM to raise $10 million in capital, according to an April 17 press release, effectively replacing the $10 million loan with equity. Complaints have risen over government cash being directed to large companies instead of smaller ones.
As of the end of its fiscal year in December, the New York-based company was running 254 restaurants along with service from a fleet of trucks called Shack Trucks.
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