I did not see any disclosure on Continental Capitals web site insidewallstreet.com. I am waiting for their write up. Did they buy huge amounts of warrants? Time will tell.But I did find this on their web site and I saw no disclosure that they are paid and how much they are being paid.
insidewallstreet.com
Wednesday May 31, 8:50 am Eastern Time
Company Press Release
Creative Host Services, Inc. Announces JV Partnership For New Retail Venue and Possible New Acquisition
SAN DIEGO, May 31 /PRNewswire/ -- Creative Host Services, Inc. (Nasdaq: CHST - news) today announced a joint venture arrangement with Mrs. Treva Metoier of TDM Incorporated, to enter proposals, operate, and manage retail news and gift and specialty retail stores with Creative Host Services, Inc. The two Companies plan to submit proposals at some of Creative's existing airport locations as they become available, as well as at new locations across the United States. Proposals are currently being prepared for three such locations. With the assistance of Mrs. Metoier, who has more than 15 years experience owning and operating specialty retail and news and gift stores, Creative Host believes that it can capitalize on retail opportunities as they become available. The move gives Creative Host Services yet another venue for growth in the future.
Captive news and gift and specialty retail operations typically operate on gross margins that are much higher than traditional food service operations, often as high as 40% to 50%. Under the agreement between the two operators, Mrs. Metoier will be paid a management fee equal to 5% of sales, and a portion of net profits at any locations the two Companies procure. Creative Host will finance and own the operations.
Mrs. Metoier's Company, TDM, Inc., currently operates ten retail locations at airports across the U.S. Creative would like to purchase two of TDM's existing locations, which do annual sales in excess of $10,000,000 per year. For the transaction to occur, TDM must receive approval from the company that holds the master concession lease at the airport where the two stores are located. Creative currently operates a successful food/beverage location at that airport, however, approval from the master concessionaire is not guaranteed to Mrs. Metoier and TDM.
Creative Host Services, Inc. is engaged in the business of acquiring, managing and operating airport concessions such as food and beverage, news and gift, and other concessions throughout the United States. In addition, the Company also provides in-flight catering to certain national airlines at 9 of its airport locations. The Company currently has 43 operating facilities at 21 airports. Forty-two are company owned and one is franchised. Six of the Company's 42 operating concessions are food-courts, each consisting of several food and beverage restaurants that are located within each court. If the various food courts were separated and counted as individual concessions, Creative Host operates approximately 70 concessions overall. To simplify accounting, the Company counts its various food-courts as only one concession. Creative Host Services, Inc. enjoys co-branding relationships with several national and regional companies such as Carl's Jr., Taco Bell, Little Caesars Pizza, TCBY Yogurt, Mrs. Field's Cookies, Nathan's Famous Hotdogs, and Pretzelmaker.
Certain of the matters discussed herein contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Among these risks are the possibilities that Creative Host Services, Inc. and TDM, Inc./Mrs. Metoier may not receive contracts for new retail locations now and in the future. Additionally, the two companies may not receive approval, from the master concessionaire, to transfer ownership of the aforementioned retail operations from TDM to Creative Host Services. These and other risks are set forth in the reports filed by the Company with the Securities and Exchange Commission.
SOURCE: Creative Host Services, Inc.
For Additional Information, Please Contact:
With the Company
Sayed Ali
President/Chairman of the Board
858-587-7300
Broker/Investor Relations
Continental Capital & Equity Corp.
Pat Shane
407-682-2001
pat@insidewallstreet.com
|
