LAFAYETTE, La. - March 5, 2014 // PRNewswire // - American Restaurant Concepts, Inc. (OTCBB: ANPZ), operator and franchisor of the award-winning Dick's Wings & Grill® restaurants, has successfully completed a financing transaction with Seenu G. Kasturi, President of Blue Victory Holdings, Inc.
Under the terms of the transaction, Mr. Kasturi purchased 206,061 shares of the Company's common stock at a purchase price of $1.65 per share, which was the closing price of the stock on the Over-the-Counter Bulletin Board on February 26th.
Mr. Kasturi issued a promissory note to the Company in consideration for the shares. The note accrues interest at a rate of 6% per annum and has a maturity date of March 31, 2015. The principal balance of the note and the accrued interest are payable in four equal quarterly installments of $85,000 beginning June 30, 2014. Accordingly, the transaction will net the Company $340,000 in capital over the next 12 months.
"I am confident that we now have access to the capital we need to continue to expand our business through a combination of internal growth of our existing brands and acquisitions of additional, complementary brands," stated Richard W. Akam, CEO of American Restaurant Concepts, Inc. "Seenu and Blue Victory have been substantial supporters of American Restaurant Concepts, and this direct investment by Seenu at full market price shows the faith he has in the progress we are making in executing upon our business strategy. We are excited to have completed this transaction with Seenu."
"I have increased my ownership stake in American Restaurant Concepts to 9% because of the success the company has achieved in setting itself up for accelerated future growth," stated Seenu G. Kasturi. "They acted aggressively in putting their initial challenges behind them by focusing on their franchisees and customers, and are now executing on the growth phase of their strategic plan. American Restaurant Concepts is transforming itself into a leading multi-brand restaurant franchisor and has a clear plan to deliver long-term shareholder value. I am impressed with the profit-generating potential for this company."
American Restaurant Concepts, Inc., headquartered in Lafayette, Louisiana, is the operator and franchisor of the Dick's Wings & Grill® full-service restaurants and Dick's Wings Express® express restaurants. The Company prides itself on its award-winning chicken wings, for which it boasts 365 mouth-watering flavors. It offers customers the freshest wings, sandwiches, burgers, wraps, salads and signature waffle fries, all in a unique setting that combines a family-friendly environment with a sports-themed restaurant. The Company currently has 15 full-service restaurants and one express restaurant. For more information, please visit the Company's website at www.dickswingsandgrill.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the Company's future financial position, business strategy, plans and objectives, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, those factors set forth in the Company's Annual Report on Form 10-K for the year ended December 30, 2012 and its other filings and submissions with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.
SOURCE American Restaurant Concepts, Inc.