(BSNS WIRE) Eat at Joe's, Ltd. President and COO Updates Investors
Eat at Joe's, Ltd. President and COO Updates Investors
Business Editors
TORONTO--(BUSINESS WIRE)--Sept. 7, 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, today presented the company's shareholders and potential
investors with the following update.
Gino Naldini, President and Chief Operating Officer stated:
"Since joining Eat at Joe's, Ltd. as President and Chief
Operating Officer in December 1998, my mission has been to build a
Multi-Unit Branded Restaurant Organization and a management team with
the depth to carry forward this vision.
"Our first order of business was to assemble a team. We are
pleased to have Gary Usling join us as Chief Financial Officer, and
Joseph Barbosa as Vice President of Operations. Their backgrounds are
well respected and their successes well documented within the real
estate and restaurant industries respectively."
Naldini continued, "In June, we completed the purchase of the Koo
Koo Roo restaurants we had managed in Toronto, and have signed leases
for two additional sites in Ontario. This acquisition was funded
through a combination of non-dilutive financing methods and
newly-established Canadian lines of credit. Eat at Joe's has also
relocated its corporate and operations office to Toronto.
"The Koo Koo Roo Humbertown restaurant, the first of the Toronto
Koo Koo Roo restaurants owned by our Canadian subsidiary, increased
its revenues more than 100 percent from the time it was reopened as a
newly renovated Koo Koo Roo restaurant on May 11, 1999. The impressive
increase in revenue at this location further supports our projection
of $1.5 million CD in gross sales during its first year operation.
"We also examined both of our other Toronto Koo Koo Roo
locations, and decided to close these units. While the locations were
high profile, the revenue generated made them economically unfeasible.
We will focus our efforts on two new locations in the Toronto area
that we plan to open in the coming months.
"In June of this year, we had discussions with the company's
preferred shareholders in which they agreed to "lock-up" the
unconverted portion of their preferred shares. The significance of the
lock-up agreement is twofold: a) it reduced the discount preferred
shareholders will receive on conversion, and b) it allotted more time
prior to that conversion to become effective, thereby affording the
company an opportunity to grow the business, hopefully, increasing
shareholder value, while minimizing the dilutive effect caused by the
conversion of preferred stock into common stock.
"In May, the company filed an SB-2 Registration Statement with
the Securities and Exchange Commission to issue shares to fund
acquisitions for expansion. To date, that filing is not effective and
the company's Board of Directors is deciding on the structure of the
pricing within that Registration Statement."
Naldini added, "We anticipate that most of the targeted
acquisitions can be funded through conventional debt financing.
However, it is important to note that the only reason for shares to be
sold pursuant to the SB-2 Registration Statement would be if there
were a shortfall between the debt financing provided and the required
down payment on the acquisitions, or if debt financing were unable to
be obtained. At this point, we are optimistic that neither one of
these scenarios is likely.
"On the acquisition front, the company has targeted several
acquisition candidates and entered into Letters of Intent. We are
unable at this time, due to confidentiality commitments, to release
any specific details. The closing of these acquisitions is subject to
various conditions including obtaining the proper debt funding. The
advantage to funding these acquisitions with debt financing is that
there will be no dilution of the company's common stock. We anticipate
reporting significant announcements regarding the status of the
acquisitions within the next ninety (90) days.
"It is important to note that the company's main focus, at this
point, is on targeting acquisitions. We are working toward the
consummation of each acquisition during the fourth quarter of this
year," Naldini concluded.
Eat at Joe's serves home-cooked American meals at diner-style
restaurants in southern New Jersey, Pennsylvania and Baltimore,
Maryland. 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
--30--DS/ph*
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
KEYWORD: NEW YORK INTERNATIONAL CANADA
INDUSTRY KEYWORD: FOODS/BEVERAGES RESTAURANTS
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