Important part in Bold below.....IMHO
In April 2000, the Company entered into a joint venture agreement with JD Enterprises, L.L.C. ("JDE") to fund the remaining purchase price and pay certain costs incurred by Fatburger's owner. Terms of the agreement call for (a) the Company to secure $3,000,000 in Senior Debt financing for Newco, and (b) JDE to pay $2,000,000 and secure Subordinate loan financing of $2,000,000. Proceeds of this funding in excess of that required to close the Fatburger transaction totaling $525,000 will be retained for working capital purposes. Upon closing the Fatburger transaction, all of the acquired assets of Fatburger will be assigned to a newly-incorporated holding company ("NEWCO") of which the Company will own thirty-three percent and JDE sixty-seven percent of the issued and outstanding common stock. The Company intends to enter into a Development Agreement with NEWCO granting the Company exclusive rights to franchise Fatburger restaurants in Texas and Georgia and the first right of refusal for South Carolina.
So we'll have a spin-off company called "NEWCO"? ;o)
Does "NEWCO" stand for "New Company"? OR what???
If "NEWCO" issues 15 million shares, then our 1/3 will be
5 million shares. Which is about 1/2 the total O/S for
RTIN. If Fatburger is worth double digits, then that's
just like getting $5+ a share for our RTIN stock! PLUS,
we still have our RTIN stock and two other newly acquired
companies!!! Sounding pretty good to me!
The Company anticipates completing its acquisition of Fatburger during the second quarter of 2000, but can not be assured when, if ever, the acquisition will be completed.
Two weeks? 11 weeks max? I hope it's "next week"!
KZAP |
