Shortly after announcing it would return a loan from the government's Small Business Administration (SBA), Shake Shack (SHAK -0.14%) filed a prospectus for a new share sale. The company will sell just over 3.4 million shares of its Class A common stock to the underwriters of the issue, who will go on to sell them to investors.

The underwriting syndicate, led by JPMorgan Chase unit J.P. Morgan Securities, and including Bank of America Securities and Wells Fargo Securities, is paying $39.77 per share for the stock. This should raise nearly $136 million in gross proceeds for the hamburger restaurant chain operator.

A cheeseburger on a wooden board.

Image source: Getty Images.

That amount is far higher than the $10 million loan Shake Shack secured from the SBA's Paycheck Protection Program (PPP). Those monies were returned in their entirety by the company, following outcry from the public after the PPP's funds ran dry.

After the issue, Shake Shack will have slightly more than 37.8 million shares outstanding.

The company said it will use the proceeds from its new share issue "for working capital and other general corporate purposes." It did not get more specific.

Restaurant chains have been profoundly affected by the wide business shutdowns mandated as part of an effort to mitigate the SARS-CoV-2 coronavirus outbreak. Although restaurants are generally allowed to accept takeout and delivery orders, the lack of in-store traffic is damaging their finances.

Although it's hard to tell whether it was because the company returned the PPP money, or will soon have more funds in its coffers (or perhaps both), Shake Shack shares were doing well in early afternoon trading Monday. They were up by nearly 5.2%, in contrast to the slump of the broader equities market and numerous top stocks.