Market Overview

Diversified Restaurant Holdings Announces Pricing of its Public Offering of Common Stock


Restaurant Holdings, Inc.
("DRH" or the "Company") (NASDAQ:SAUC),
one of the largest franchisees for Buffalo Wild Wings® ("BWW") with 65
stores across five states, today announced the pricing of its previously
announced underwritten registered public offering of 6 million shares of
its common stock at a public offering price of $1.00 per share,
including 700,000 shares offered by a certain selling stockholder, for
total Company gross proceeds of $5.3 million. DRH also granted the
underwriter an option for a period of 30 days to purchase up to an
additional 450,000 shares of its common stock to cover over-allotments,
if any. The offering is expected to close on or about July 24, 2018,
subject to the satisfaction of customary closing conditions.

DRH intends to use the net proceeds from the offering for working
capital and general corporate purposes, which may include repayment of

Dougherty & Company LLC is acting as the sole managing underwriter for
the offering.

The offering is being made pursuant to a shelf registration statement on
Form S-3 (File No. 333-225457) that was filed with the U.S. Securities
and Exchange Commission (the "SEC") and became effective on July 5,
2018. A preliminary prospectus supplement and accompanying prospectus
relating to and describing the terms of the offering were filed with the
SEC on July 19, 2018 and may be obtained by visiting the SEC's website
or by contacting Tony Felling, Head of Sales, Dougherty & Company LLC,
90 South Seventh Street, Suite 4300, Minneapolis, Minnesota 55402, by
telephone at (612) 317-2123 or by email at
The final terms of the offering will be disclosed in a final prospectus
supplement to be filed with the SEC.

This press release does not constitute an offer to sell or solicitation
of an offer to buy any securities in the offering. Nor shall there be
any sale of these securities in any state or jurisdiction in which such
offering, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or jurisdiction.

About DRH

Diversified Restaurant Holdings, Inc. is one of the largest franchisees
for Buffalo Wild Wings with 65 franchised restaurants in key markets in
Florida, Illinois, Indiana, Michigan and Missouri. DRH's strategy is to
generate cash, reduce debt and leverage its strong franchise operating
capabilities for future growth. The Company routinely posts news and
other important information on its website at

Safe Harbor Statement

Some of the statements contained in this news release may constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. These statements reflect the
current views of our senior management team with respect to future
events, including our financial performance, business and industry in
general. Statements that include the words "expect," "intend," "plan,"
"believe," "project," "forecast," "estimate," "may," "should,"
"anticipate," and variations of such words and similar statements of a
future or forward-looking nature are intended to identify such
forward-looking statements. We intend for our forward-looking statements
to be covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995, and we set forth this statement in order to comply with such safe
harbor provisions.

Forward-looking statements involve known and unknown risks and
uncertainties and are not assurances of future performance. Accordingly,
there are or will be important factors that could cause our actual
results to differ materially from those indicated in these statements,
including, among others, the risks and uncertainties disclosed in our
annual reports on Form 10-K, quarterly reports on Form 10-Q and other
filings made with the Securities and Exchange Commission. Any
forward-looking statements you read in this news release reflect our
views as of the date of this news release with respect to future events
and are subject to these and other risks, uncertainties, and assumptions
relating to our operations, results of operations, growth strategy,
liquidity and this offering. You should carefully consider all of the
factors identified in this news release that could cause actual results
to differ.

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