Chicken Kitchen Corporation Announces Settlement Of Preferred Shareholders Lawsuit
CORAL GABLES, Fla., March 30 /PRNewswire/ -- Chicken Kitchen Corporation (OTC Bulletin Board: CKKC), announced today that on March 23, 2001, the Company settled a lawsuit brought by preferred shareholders for alleged breaches of a subscription agreement to convert preferred shares into restricted common stock. The settlement required the Company to convert the preferred stock into 16,000,000 shares of Class A common stock, and further required the Company to pay the preferred stockholders $350,000 at the closing, and issue a promissory note for the payment of an additional $150,000 one year after the closing. The promissory note is secured by 500,000 shares of the Company's Class A common stock owned by the Company's President and CEO, Christian de Berdouare. The preferred stockholders also entered into a voting agreement binding them to vote their exchanged shares pursuant to the recommendation of the Company's board of directors. No dividends will be due or paid on the converted preferred stock. During the current fiscal year the Company paid $350,000 to the preferred stockholders ($50,000 of which was previously held in escrow). The lawsuit was dismissed with prejudice and documents were executed to effectuate the settlement.
The Company issued 16,000,000 shares of Class A common stock to cover the settlement with the holders of the preferred shares.
As of March 30, 2001, the Company owns and operates four (4) Chicken Kitchen(R) restaurants in Southeast Florida; has six (6) franchised restaurants in operation and has eight (8) more individual franchise stores in various stages of development and construction. With the eight (8) franchises under development, and the ten (10) restaurants already open, the Chicken Kitchen System will be comprised of a total of eighteen (18) restaurants operating in the Southeastern U.S.
Founded in 1983, Chicken Kitchen(R) operates retail food-service stores under the Chicken Kitchen(R) brand name that features marinated, grilled chicken entrees, freshly prepared side orders and signature sauces. All chicken items, delivered fresh (never frozen), are marinated in Chicken Kitchen Corporation's proprietary blend of fruit juices, herbs and spices and grilled to order in the Company's award-winning open kitchen style restaurants. All of Chicken Kitchen's(R) side dishes are prepared fresh daily in each restaurant, utilizing fresh and natural ingredients. Most of the menu items are designed to be low in fat, cholesterol and calories and prepared in accordance with the guidelines established by the American Heart Association. Chicken Kitchen(R) combines the freshness and quality of grill cooking with convenience and value.
Statements contained herein that are not historical facts are forward- looking statements as defined in the Private Securities Litigation Reform Act of 1995. Except for historical information, this press release contains forward-looking statements that involve risks and uncertainties including, but not limited to, quarterly fluctuations in results, the actual management of growth, competition and other risks detailed in the Company's SEC filings. Actual results may differ materially from such information set forth herein.
SOURCE Chicken Kitchen Corporation
CO: Chicken Kitchen Corporation
ST: Florida
IN: RST OTC
SU:
03/30/2001 17:35 EST prnewswire.com |
