Full house..HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--July 19, 2001--Chicago
Pizza & Brewery Inc. (Nasdaq:CHGO)(Nasdaq:CHGOW) announced that its
shareholders overwhelmingly approved the private placement of 3.2
million shares of common stock with BJ Chicago, LLC, the company's
largest shareholder.
Concurrent with the shareholder approval, BJ Chicago, LLC
confirmed its intention to purchase the shares at $2.50 per share on
or before Aug. 15, 2001. The company had previously granted BJ
Chicago LLC the right to purchase these shares in conjunction with an
April 2001 private placement of 800,000 shares, also at $2.50 per
share. The right to purchase the additional shares was contingent upon
shareholder approval as well as the receipt of a favorable fairness
opinion. A favorable opinion was received from the valuation firm of
Houlihan, Smith & Co. Inc.
Paul Motenko, Co-CEO, stated: "We are very pleased that our
shareholders approved the transaction by such a significant margin,
and that BJ Chicago LLC has committed to contributing this additional
capital to the company. The additional equity strengthens our
financial position significantly, and provides us with the resources
to actively implement a more aggressive growth strategy."
As a result of the shareholder vote approving the transaction, the
anti-dilution provision of the company's warrant agreement was
triggered, resulting in the adjustment of the exercise price of the
company's approximately 8 million warrants to $4.89 per share. |
