Stockholders' Equity

9 Months Ended

Sep. 24, 2022

European Wax Center, Inc. and Subsidiaries

Stockholders' Equity

15. Stockholders’ equity

Secondary Public Offering

On May 24, 2022, we completed a secondary public offering (the “Secondary Offering”) of 5,175,000 shares of our Class A common stock at a price of $21.50 per share. All of the shares sold in the Secondary Offering were sold by certain of the Company’s stockholders. As such, we did not receive any proceeds from the Secondary Offering. The shares sold in the secondary offering consisted of 2,771,772

existing shares of Class A common stock and 2,403,228 newly issued Class A shares issued in connection with the exercise of exchange rights in which 2,403,228 EWC Ventures Units and corresponding number of shares of Class B common stock were exchanged for the newly issued shares of Class A common stock.

Share Exchange Transactions

During the 39 weeks ended September 24, 2022 certain EWC Ventures Post-IPO Members exercised their exchange rights and exchanged 1,613,282 EWC Ventures Units and the corresponding shares of Class B common stock for 1,613,282 newly issued shares of Class A common stock. These exchange transactions, together with the share exchanges completed in connection with the Secondary Offering, increased the Company’s ownership interest in EWC Ventures.

Special Cash Dividend

On April 11, 2022, the Board of Directors of the Company declared a special cash dividend of $122,227, or $3.30 per share, of Class A common stock which was paid during the 39 weeks ended September 24, 2022 to its Class A common stock holders. The Company also paid dividend equivalents of $82,887, or $3.30 per unit, to holders of EWC Ventures Units during the 39 weeks ended September 24, 2022. These payments were funded through existing cash and proceeds from the Company’s securitization transaction (See Note 6 for more information). In addition, as of September 24, 2022 we had $4,243 of dividend equivalents accrued for future payment to holders of unvested EWC Ventures Units to be paid upon the vesting of the related awards. Of this amount, $1,266 and $2,977 were recorded in accounts payable and accrued liabilities and other long-term liabilities, respectively, on the accompanying condensed consolidated balance sheets.