Amergent Hospitality Closes $2.5 Million Financing

CHARLOTTE, NC / ACCESSWIRE / February 1, 2023 / Amergent Hospitality Group (OTCQB:AMHG) ("Amergent" or the "Company"), owner, operator and franchisor of multiple nationally recognized restaurants, today announced that it has closed $2.5 million of a Series B Convertible Preferred / Warrant financing. The Company plans to use the net proceeds to complete the purchase of its recently announced acquisition of Boudreaux's Cajun Kitchen, along with funding its future growth strategy.

The Company sold 125 shares of Series B Convertible Preferred and Warrants to purchase up to 1,250,000 shares of common stock, $0.0001 par value.

The convertible preferred is convertible into shares of Amergent's common stock at the option of the investors at a conversion price of $0.50 per share and will accrue a cumulative dividends in an amount equal to 12% on an annual basis, payable in cash, or in shares of common stock based on 30 day VWAP of common stock on the trading market. The Company has the right to redeem the Series B Preferred subject to the terms and conditions of the Series B Preferred.

Mike Pruitt, CEO and Chairman of Amergent Hospitality Group commented, "We are pleased to have closed on this $2.5 million financing. We look forward to investing these proceeds on closing the acquisition of Boudreaux's Cajun Kitchen, expecting the transaction to be accretive to both cash flow and earnings with an anticipated close date in the first quarter of 2023, and the balance on additional potential opportunistic acquisitions."

Amergent has historically focused on the micro-regional "Better Burger" branded concepts through its acquisitions of ABC, BGR and LBB. Over the past two years, the Company has enhanced its management team, paid down debt, and put in place a growth strategy to grow the best of its current brands, along with acquiring new brands that are poised for growth.

The securities were offered and sold in a transaction not involving a public offering pursuant to exemption from the Securities Act of 1933, as amended (the "Securities Act") and have not been registered under the Securities Act, or any other applicable state securities laws. Accordingly, those securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

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

About Amergent Hospitality Group:

Headquartered in Charlotte, NC, Amergent Hospitality Group owns, operates, and franchises fast, casual, and full-service restaurant brands, including BGR - Burgers Grilled Right, Little Big Burger, Jaybees Chicken, , Boudreaux's Cajun Kitchen, the Nest and the Roost gaming venue. Currently it has 35 stores. For more information, please visit: www.amergenthg.com

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations. The words and phrases "should", "could", "may", "will", "believe", "think", "plan", "intend", "expect", "potential", "possible", "anticipate", "estimate", "forecast", "view", "efforts", "target", "goal" and similar expressions identify forward-looking statements and express our expectations about future events. This communication includes statements that may contain forward-looking statements within the meaning of federal securities laws. We believe that our expectations are based on reasonable assumptions; however, no assurance can be given that such expectations will prove to be correct. A number of factors could cause actual results to differ materially from the expectations, anticipated results or other forward-looking information expressed in this communication, including liquidity and financial market conditions, including rising interest rates and associated policies of the U.S. Federal Reserve, commodity price volatility due to ongoing or new global conflicts such as the ongoing conflict in the Ukraine, adverse market conditions, governmental regulations, including the impact of the Inflation Reduction Act of 2022, and the impact of world health events such as the ongoing COVID-19 pandemic. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially from our expectations due to a number of factors, including, but not limited to, those items identified as such in the most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q and the risk factors described thereunder, filed with the U.S. Securities and Exchange Commission.

Many of such risks, uncertainties and assumptions are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. We do not give any assurance (1) that we will achieve our expectations or (2) concerning any result or the timing thereof.

We assume no duty to update or revise their respective forward-looking statements based on new information, future events or otherwise.

Amergent Hospitality Group Investor Contact:

Jason Assad
678-570-6791
IR@amergenthg.com

SOURCE: Amergent Hospitality Group