Chanticleer Holdings Announces Extension of Debt with Strategic Investors
January 02 2019 - 8:00AM
Chanticleer Holdings, Inc. (NASDAQ:
BURG)
(“Chanticleer” or the “Company”), owner, operator, and franchisor
of multiple nationally recognized restaurant brands today announced
the extension of the maturity date of its previously issued $6
million debentures with strategic investors. The debentures
interest rate remains unchanged while the maturity date has been
extended 15 months from December 31, 2018 to March 31, 2020, with
the expectation of 50% being paid off by December 31, 2019.
The lead participants continue to consist of a joint venture
partner in numerous Little Big Burger restaurants along with a
current member of the Company’s Board of Directors, also a
franchisee of multiple Little Big Burger restaurants in Southern
California. Both are also sizeable equity holders in the Company.
The investors received non-cashless warrants priced at $2.25 as
part of the transaction.
Fred Glick, President of Chanticleer Holdings, stated, "I’m
pleased that our debt holders agreed to extend the maturity of our
debt till March 31, 2020. As previously discussed, prior to my
taking the role as President, I met with them to discuss my plan
and requested time to execute it. I’m grateful they recognized not
only the clear fundamental progress made over the last year, but
the value that could be further unlocked by affording me ample time
to do what I was brought in to do. They fulfilled their promise to
me and it’s my full intention do my part in return.”
Glick continued, “Recent weeks continues to affirm the reasons
that drove me to join the Company to begin with. I’m highly
confident that we have a solid foundation to build atop going
forward and that the market is currently not properly awarding us a
valuation commensurate with our improving fundamentals or the
underlying intrinsic value of our assets. My and Mike’s goal is to
correct this disparity through a concerted and collective effort
focused on measurable results, transforming our up and coming
company into a larger and more formidable player in the
space.”
Additional details may be found in a Form 8K which will be filed
with the Securities and Exchange Commission.
Mike Pruitt, Chanticleer Chief Executive Officer stated, “I
would like to thank our debt holders for their continued commitment
to our Company including their willingness to allow us to hold out
for the right price while we look to sell non-core assets.
Considering recent growth in our Little Big Burger brand resulting
in store count nearly doubling in 2018, the debt extension is a
pivotal moment allowing us to build atop of recent progress. With a
proven operator like Fred helping to build our brands through
driving positive employee and guest experiences expected to result
in revenue growth and optimized profits, we are optimistic about
the future for our Company, employees and shareholders.”
About Chanticleer Holdings, Inc.
Headquartered in Charlotte, NC, Chanticleer Holdings owns,
operates, and franchises fast, casual, and full-service restaurant
brands, including American Burger Company, BGR – Burgers Grilled
Right, Little Big Burger, Just Fresh, and Hooters. For more
information, please visit:
www.chanticleerholdings.com.
Forward-Looking Statements:
Any statements that are not historical facts contained in this
release are “forward-looking statements” as that term is defined
under the Private Securities Litigation Reform Act of 1995 (PSLRA),
which statements may be identified by words such as “expects,”
“plans,” “projects,” “will,” “may,” “anticipates,” “believes,”
“should,” “intends,” “estimates,” and other words of similar
meaning. Such forward-looking statements are based on current
expectations, involve known and unknown risks, a reliance on third
parties for information, transactions or orders that may be
cancelled, and other factors that may cause our actual results,
performance or achievements, or developments in our industry, to
differ materially from the anticipated results, performance or
achievements expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties
related to the fluctuation of global economic conditions, the
performance of management and our employees, our ability to obtain
financing or required licenses, competition, general economic
conditions and other factors that are detailed in our periodic
reports and on documents we file from time to time with the
Securities and Exchange Commission. The forward-looking statements
contained in this press release speak only as of the date the
statements were made, and the companies do not undertake any
obligation to update forward-looking statements. We intend that all
forward-looking statements be subject to the safe-harbor provisions
of the PSLRA.
Contact Information:
Investor Relations Jason Assad 678-570-6791
Ja@chanticleerholdings.com
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