SCary trader though. IMO
Tuesday January 11, 3:01 pm Eastern Time
Company Press Release
Hudson's Grill Announces The Signing of a Non-Binding Letter of Intent to
Merge and David L. Osborn's Resignation
Hudson's Signs Non-Binding Letter of Intent to Merge
DALLAS--(BUSINESS WIRE)--Jan. 11, 2000-- Hudson's Grill of America, Inc. (Nasdaq:HDSG - news), based in Dallas, announced today that it had signed a
non-binding letter of intent to merge into Overland Beverage Distributing, Inc. (a non-public company recently formed to distribute beverages). Representatives from
Overland will contact existing and potential creditors of the Company in an effort to exchange stock and warrants in the merged company for the cancellation of
existing and contingent debts.
If Overland's representatives are able to obtain agreements from the Company's current and contingent creditors to accept equity in the newly merged company,
then Overland plans to proceed with the merger. If the merger proceeds according to the letter of intent, the Company will do a 1 for 4 reverse stock split and then
issue 5,000,000 shares to Overland to effect the merger. The newly merged company would not include Hudson's Grill International, Inc., which is currently a
subsidiary of the Company. Hudson's Grill International will be spun off to the current shareholders of the Company as a separate, publicly held entity.
Additionally, Hudson's announced that effective Dec. 31, 1999, David L. Osborn, the Company's President and also one of its directors, had resigned as President
and director of the Company. Mr. Osborn will stay on as an interim President of the Company's subsidiary, Hudson's Grill International, until its stock registration
has become effective and the subsidiary is spun off to the Company's shareholders. The Company's directors will manage the Company until a replacement can be
found.
The Company also announced that it had settled a lawsuit with the landlord of a Whittier, Calif., site that the Company formerly had leased. The suit also involved
another guarantor of the lease, who will pay the settlement of $400,000. The Company has no specific obligation to the guarantor but likely will issue stock to the
guarantor for paying the settlement. Additionally, the Company recently has put up its Dallas restaurant subsidiary for sale; if not sold in the next several months, it
will be closed down.
Hudson's Grill of America is publicly traded over the counter under the Nasdaq symbol HDSG.
Contact:
Hudson's Grill of America, Inc., Dallas
Mitzy Ferguson, 972/931-9237
e-mail: mitzy@hudsonsgrill.com
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