Chanticleer Holdings Announces Non-Binding Letter of Intent for Sale of South Africa Hooters
August 27 2019 - 8:00AM
Chanticleer Holdings, Inc. (NASDAQ:
BURG)
(“Chanticleer” or the “Company”), owner, operator, and franchisor
of multiple nationally recognized restaurant brands today announced
that it has entered in to a non-binding letter of intent for the
sale of its South Africa Hooters locations.
The purchase price is $1,065,000 which is expected to result in
net proceeds of approximately $360,000 to Chanticleer. Net
working capital of the Company’s consolidated financial statements
is expected to improve by approximately $750,000 - $900,000 after
the sale. Chanticleer will retain a 50% interest in the gambling
portion of the South Africa Hooters business. Estimated closing is
by the end of September.
Patrick Harkleroad, the Company’s Chief Financial Officer,
commented, “We’re pleased to have entered into a letter of intent
for the sale of our five South Africa Hooters locations. The
benefits of the transaction are numerous, including a cash
infusion, improving working capital and alleviating some financial
reporting complexities associated with foreign currency
translation. Importantly, we have retained a 50% interest in the
gaming side of the business which should be highly profitable going
forward.”
Harkleroad continued, “The monetization of this asset will lead
to improved operational efficiencies as we focus on our core better
burger operations.”
The letter of intent is subject to completion of due diligence
and final material definitive agreements.
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:
Some portions of this press release, particularly those
describing Chanticleer's goals and strategies, contain
'forward-looking statements.' These forward-looking statements can
generally be identified as such because the context of the
statement will include words, such as 'expects,' 'should,'
'believes,' 'anticipates' or words of similar import. Similarly,
statements that describe future plans, objectives or goals are also
forward-looking statements. While Chanticleer is working to achieve
those goals and strategies, actual results could differ materially
from those projected in the forward-looking statements as a result
of a number of risks and uncertainties. These risks and
uncertainties include conditions and servicing of current debt
obligations, maintaining and protecting brand recognition, the need
for significant capital, increasing costs of fuel and freight,
protection of intellectual property, competition and other factors,
any of which could have an adverse effect on the business plans of
Chanticleer, its reputation in the industry or its expected
financial return from operations and results of operations. In
light of significant risks and uncertainties inherent in
forward-looking statements included herein, the inclusion of such
statements should not be regarded as a representation by
Chanticleer that they will achieve such forward-looking statements.
For further details and a discussion of these and other risks and
uncertainties, please see our most recent reports on Form 10-K,
Form 10-Q and Form S-1, as filed with the Securities and Exchange
Commission, as they may be amended from time to time. Chanticleer
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
Contact Information:
Investor Relations Jason Assad 678-570-6791
Ja@chanticleerholdings.com
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