Diversified Restaurant Holdings, Inc. (NasdaqCM:SAUC) agreed to spinoff Bagger Dave's business on July 28, 2016. Diversified Restaurant Holdings intends to split into two separate, publicly-traded companies through the tax-free spinoff of its Bagger Dave's business to Diversified Restaurant Holdings stockholders. Each Diversified Restaurant Holdings, Inc. shareholder will receive one share of Bagger Dave's common stock for every share of Diversified Restaurant Holdings, Inc. common stock held on the record date. The company to be formed with the proposed spinoff of the Bagger Dave's business will own and operate 19 Bagger Dave's restaurants and will trade be in the over-the counter (OTC) market. Diversified Restaurant Holdings will continue to own and operate its 64 franchised BWW restaurants and be listed on the NASDAQ exchange. The record date is set to be as December 25, 2016. The spinoff will be subject to approval by Diversified Restaurant Holdings Board of Directors and customary regulatory requirements. On August 4, 2016, Board of Directors of Diversified Restaurant Holdings unanimously approved the transaction. Diversified Restaurant Holdings expects to complete the spinoff in the fourth quarter of 2016.

Diversified Restaurant Holdings, Inc. (NasdaqCM:SAUC) completed the spinoff Bagger Dave's Burger Tavern, Inc. for $20 million on December 27, 2016. The trading of shares of Bagger Dave's will begin trading on the OTC Bulletin Board upon approval by Financial Industry Regulatory Authority.