(BSNS WIRE) Eat at Joe's, Ltd. Signs Lock-Up Agreement with Preferred Sh
Eat at Joe's, Ltd. Signs Lock-Up Agreement with Preferred Shareholders
Business Editors
TORONTO--(BUSINESS WIRE)--June 17, 1999---Eat At Joe's, Ltd.
(OTC BB:JOES), a diversified food service company that owns the Eat at
Joe's chain of 1950s-style diners in the Northeastern U.S. and holds
an exclusive license to develop and manage Koo Koo Roo restaurants in
Canada, announced today that its preferred shareholders previously
used to finance the company have agreed to a lock-up agreement in an
attempt by the company to restore shareholder confidence and value.
"Working with our investment bankers, we were successful in
locking-up all significant funding tranches and have been working with
institutional investors to purchase these shares on a piecing-out
basis over the next few quarters. In essence, once stability and
confidence is restored to our share price, conversions into common
stock can be facilitated on a less dilutive basis increasing
shareholder value for our long-term shareholders," stated Gary Usling,
Chief Financial Officer of Eat at Joe's.
"The significance of this is monumental for Eat at Joe's given
our aggressive acquisition plan and it again reinforces that our
initial preferred shareholders recognize the need to allow the company
to mature to the next level of growth. In many cases these
shareholders have maintained a portion of their investment within
their portfolios for long-term growth and appreciation," Usling also
commented.
It should also be noted that many of these investors have
indicated a desire to provide additional capital for future
acquisitions in the coming months.
Gino Naldini, President and Chief Operating Officer of Eat at
Joe's, said, "I remain confident that the shareholder value will be
restored to respectable levels within the coming weeks based on the
steps that we have taken."
Eat at Joe's serves home-cooked American meals at eight
diner-syle restaurants in southern New Jersey, Pennsylvania and
Baltimore, Maryland. Two additional restaurants are under
construction, others in planning stages, and the company has signed a
letter of intent to acquire a 16-unit regional restaurant chain.
Except for historical matter contained herein, the matters
discussed in this press release are forward-looking statements and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
These forward-looking statements reflect assumptions and involve
risks and uncertainties which may affect Eat at Joe's, Ltd.'s business
and prospects and cause actual results to differ materially from these
forward-looking statements.
Visit the Eat at Joe's Website at: eatatjoesltd.com
--30--KMK/ph*
CONTACT: Porter, LeVay & Rose Inc., New York
Charles Southworth, Account Executive, 212/564-4700
for
Eat at Joe's Ltd.
Amanda E. Johnson, Investor Relations, 914/725-2700
KEYWORD: NEW YORK INTERNATIONAL CANADA
INDUSTRY KEYWORD: RESTAURANTS FOODS/BEVERAGES
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