NEWS! Eat at Joe's, Ltd. Enters Into An Agreement To Acquire Bacco Hostaria and Mediterraneo Restaurants
Business Editors
TORONTO--(BUSINESS WIRE)--Feb. 16, 2000--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 the company's wholly-owned Canadian
subsidiary has entered into an agreement to acquire a two unit
restaurant chain consisting of Bacco Hostaria located in Vaughan,
Ontario and Mediterraneo, Inc. located on Yonge Street in Toronto,
Ontario.
"This transaction is scheduled to close before February 28, 2000.
The closing is subject to final execution of all necessary and
pertinent closing documents," stated Gino Naldini, President and Chief
Operating Officer.
Gary Usling, Chief Financial Officer, explained that, "This
acquisition will be financed through the assumption of existing debt
and conventional credit lines through our commercial bank. The Bacco
Mediterraneo acquisition is the first step in establishing the
necessary building blocks required to create positive excess cash flow
for future growth."
Naldini said, "Both of the newly acquired restaurants serve high
quality authentic Italian Mediterranean cuisine and together have been
in operation for more than twenty years. The restaurants, which had
been separately owned but simultaneously acquired, will now operate
under the name `Bacco Mediterraneo'. Financing has been secured for
the construction of a third site scheduled to commence in early March
for a planned opening in mid-April. An additional three locations have
been identified in the Greater Toronto Area and negotiations are
proceeding."
"The company has several additional acquisition candidates
targeted and is in the late stages of negotiation both in the United
States and Canada and expects to report announcements on the progress
of the acquisitions as they occur throughout the year. The company has
agreed to stringent confidentiality terms regarding acquisition and
financing details with each of the candidates," Naldini added.
"Eat at Joe's, Ltd. has been pursuing an extensive, non-dilutive
financing package to purchase all of the targeted acquisitions. A
small portion of cash flow from the acquisitions will be utilized to
support the debt with the remaining cash flow to be used for further
corporate growth and bottom line revenue," Naldini concluded.
Eat at Joe's, Ltd. is a diversified restaurant organization
owning the Eat at Joe's diner-style restaurants in southern New Jersey
and Pennsylvania, the exclusive license to develop and manage Koo Koo
Roo restaurants in Canada, and the newly established Bacco
Mediterraneo chain featuring authentic Italian Mediterranean cuisine
at affordable prices. Additional restaurants are in planning stages,
and the company has planned acquisitions for the coming quarters.
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
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CONTACT: Eat at Joe's, Ltd.
Amanda E. Johnson, Investor Relations, 914/725-2700
or
Porter, LeVay & Rose, Inc.
Nick Petruno, Account Executive, 212/564-4700 |
