Tuesday July 14, 9:30 pm Eastern Time
Harvest to acquire restaurant chain
SAN ANTONIO, Tex., July 14 (Reuters) - Harvest Restaurant Group Inc. said Tuesday it agreed to acquire privately held TRC Acquisition Corp. in a stock deal.
As part of the deal, the company will issue 18 million outstanding shares to TRC shareholders in exchange for 100 percent of their privately held stock, Bill Gallagher, Harvest's chief executive and chairman, said.
The transaction is subject to the approval of Harvest's shareholders and other conditions, the company said in a statement.
TRC is operates and franchises 12 ''Rick Tanner's Original Grill'' restaurants in Georgia and Alabama.
Harvest, which operates and franchises Harvest Rotisserie Restaurants, reported a net loss of $866,000 for its first quarter ended April 16.
In addition to the TRC transaction, a private investor will invest $6 million into the combined company. Out of that $6 million, some $2 million will be available to Harvest within the next two weeks to develop the Tanner's chain.
If the acquisition fails to be approved by shareholders, Harvest will become a franchisee of Tanner's restaurants.
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