Chicago Pizza & Brewery, Inc. (Nasdaq:CHGO and CHGOW) announced
that it has completed the private placement of 3.2 million shares of
common stock to BJ Chicago LLC, the Company s largest shareholder, at
$2.50 per share. The Company had agreed in February 2001, in
connection with an 800,000 share private placement, to sell the 3.2
million shares to BJ Chicago LLC on or before August 15, 2001. The $8
million proceeds from the private placement were received on August
12.
Paul Motenko, Co-CEO, commented, "The additional financial
resources provided by this infusion of equity takes the Company to a
whole new level in terms of its ability to expand the very popular
BJ s concept." As a result of the transaction, the Company s financial
statements reflect $27 million in equity and $12 million in cash. In
addition, the Company has a line of credit with Union Bank with an
unused balance of $4 million. "At a time when some other restaurant
companies are slowing their growth because of a lack of financial
resources, we are poised to capitalize on prime site opportunities as
they become available."
One such opportunity has already surfaced in Arizona. The Company
recently executed a letter of intent on what would be its second unit
in the Phoenix area. The site is in a rapidly growing section of
Scottsdale. The Company already has a site in Chandler, Arizona
scheduled to open mid-October. "With the addition of Scottsdale, we
feel that BJ s is very well positioned in the Phoenix marketplace,"
remarked Jerry Hennessy, Co-CEO.
Before heading to Arizona, the Company opened its 16th restaurant
in Southern California. The 8,000 square foot BJ's Brewhouse
restaurant, in Irvine, California opened to the public August 15 after
a series of pre-opening parties that raised over $35,000 for the
Cystic Fibrosis Foundation. Hennessy commented, "The opening parties
were filled with massive energy and we are excited to be operating in
one of Irvine Company s premier properties. We are very pleased to be
involved with the Irvine Company, one of the largest land owners and
real estate development companies in California. This adds to our list
of relationships with some of the country s largest commercial
developers, including Newhall Land, Urban Retail Properties Co.,
Westcor Partners and Westfield Corporation."
Chicago Pizza & Brewery, Inc. operates 26 casual dining
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Took their sweet time announcing it. Perhaps they were waiting for the check to clear.
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