Merkado Barkada
October 15, 2024 | 8:00am
Figaro [FCG 0.86, up 6.2%; 852% avgVol] [link] changed plans to change its full legal name from “Figaro Coffee Group Inc.” to “Figaro Culinary Group Inc.” to “better reflect its strategic vision and broaden its brand identity.” FCG said that the new name will “outline the company’s commitment to quality and innovation as it expands its offerings to include a wide range of culinary products and experiences.” FCG also confirmed that it is seeking a strategic investor, and is considering a follow-on offering or preferred share sale in the future to fund its three-year growth plan. The name change will need approval from shareholders in December before it can be made official.
MB bottom-line: I had myself a Sensible Chuckle™ because I think that FCG has always been incorrectly named, considering the offering is all about Angel’s Pizza. The “Figaro Coffee” part of the IPO prospectus was hardly noticeable. It always seemed to me that the name was configured for name recognition of the older crowd most likely to invest in this stock. Figaro doesn’t have to remove “coffee” from its name to bring us non-coffee culinary experiences, it’s been doing that since before it was listed. The Liu Family is great at hype, though, so perhaps this is just one part of selling the new growth strategy to the new strategic investor that they’re hoping to attract into buying a 20% primary stake. As a former corporate lawyer, I’d just be relieved at the simplicity of the “find/replace” needed to make this change. It doesn’t even alter the company’s initialism!
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