Good Times Restaurants Inc. (Nasdaq: GTIM) shares are rising on Wednesday after announcing that it expects to commence a tender offer to purchase up to 1.4 million shares of its common stock.
The operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard set the tender offer at $4.60 per share for an approximate total amount of $6.5 million.
“Our Board of Directors believes that the tender offer is an appropriate mechanism to return capital to our shareholders while also allowing those shareholders who do not participate in the tender offer to share in a higher portion of our future potential,” the company said in a statement.
The offer is expected to begin on August 13 and remain open for 20 business days.
The news has seen GTIM shares rally, currently up 26.9% premarket at $5.71. It closed Tuesday’s session at $4.50 after gaining 9.7%.
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