Spicy Pickle Franchising Inc., a Denver-based submarine-sandwich-shop franchiser, plans to raise $5 million through an initial public offering, the company said Thursday.
The Spicy Pickle, in a filing with the U.S. Securities and Exchange Commission, said it would issue 10 million new shares at 50 cents each. Current private shareholders will also sell 8.2 million shares.
The company, which will traded on the Over-The- Counter Bulletin Board, will underwrite the offering itself.
Proceeds from the offering will be used to “pursue new franchises, build corporate stores, marketing, increase our head count and other general corporate purposes,” the filing showed.
Kevin Morrison, the company’s chief culinary officer, and Anthony Walker, chief operating officer, opened the first Spicy Pickle in 1999. The pair in 2003 created the company to franchise the concept.
The company reported revenue of $873,513 for 2005, up from $247,469 a year earlier. It posted a net loss of $431,540 last year, compared with a net loss of $287,734 in 2004.
Spicy Pickle is a member of the fast-growing fast-casual breed of restaurants and has 15 stores open. The company plans to double that by next August, the filing showed.