Creative Host Services, Inc. Signs Financial Consulting Agreement WithSchneider Securities, Inc.
SAN DIEGO, Oct. 30 /PRNewswire/ -- Creative Host Services, Inc. (Nasdaq: CHST) today announced that it has signed an investment banking agreement with Schneider Securities, Inc. of Denver, Colorado. The agreement retains Schneider Securities for consulting services related to any form of business combinations and acquisitions, corporate finance, investment banking, as well as with regard to all areas related to the Company's publicly traded markets. The contract is for two six-month terms with an additional six-month extension available to Creative Host Services, Inc.
Schneider Securities, Inc., founded in 1985, is a full service regional brokerage firm offering a wide variety of investment products and services. The firm employs approximately 165 brokers at 27 offices across the United States. Schneider Securities clears through Correspondent Services Corporation, a wholly owned subsidiary of Payne Webber, Inc. The firm has an ongoing track record in the NASDAQ market place, having done several NASDAQ/AMEX under writings as well as through market making activities in NASDAQ/AMEX stocks. Shareholders may learn more about the firm through its website at www.schneider-securities.com.
The Company has agreed to pay Schneider a fee of $40,000, $10,000 paid upon the execution of the agreement and $30,000 payable 60 days following the execution of the agreement and warrants to purchase up to 130,000 shares of the Company's common stock at exercise prices of 110% of the market value upon the signing of the agreement and an additional 125,000 warrants if the agreement is extended an additional 6 months at 110% of the then current price.
Sayed Ali, President of Creative Host Services, Inc. commented, "We are pleased to announce our new relationship with Schneider Securities, Inc. We are firm believers that small NASDAQ trading companies such as ours need to have the assistance and expertise of a brokerage firm with experience in our area of the market." The contract has been signed and is effective immediately.
Creative Host Services, Inc. and its wholly owned subsidiary Gladco Enterprises, Inc. are 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 and also manages Airline Clubs. Six of the Company's 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/Gladco operate approximately 95 concessions overall. To simplify accounting, the Company counts these food-courts as one concession. Creative Host Services, Inc. enjoys co-branding relationships with several national and regional companies such as Carl's Jr., Schlotzky's Deli, TCBY Yogurt, Samuel Adams Brew Pubs, Mrs. Fields Cookies, Pretzelmaker, Nathan's Famous Hotdogs, and Hot Licks Bar & Grill. Gladco has an agreement with the Nation's oldest brewery, Yuengling Brewery.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this news release are forward-looking statements that involve risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, intense competition, the uncertainty of governmental approvals, risks described in other reports made by the public company and other risks adherent in the Company's business. There is no assurance that the Company will accomplish any goals expressed or implied in forward-looking statements, including this acquisition closure.
SOURCE Creative Host Services, Inc.
CO: Creative Host Services, Inc.; Schneider Securities, Inc.; Gladco Enterprises, Inc.
ST: California, Colorado
IN: FOD RST AIR
SU:
10/30/2000 08:50 EST prnewswire.com |
