more strong RDNK news:
B: Redneck Foods Inc. Secures a $3 Million Equity Credit Line F
B: Redneck Foods Inc. Secures a $3 Million Equity Credit Line Financing
Commitment
LOS ANGELES, Sep 6, 2001 (BUSINESS WIRE) -- Redneck Foods Inc. (OTC:RDNK) today
announced that the company entered into an agreement under which Redneck has
secured a $3 million Equity Credit Line financing commitment.
Under the terms of an agreement with Ora Enterprises Ltd., subject to various
conditions, limitations and volume restrictions, Ora has committed to purchase,
at a discount from the market price, up to $3 million of Redneck Foods' common
stock over the next 18-month period.
Redneck intends to register the shares of its common stock underlying the Equity
Credit Line in a registration statement on Form SB-2 with the Securities and
Exchange Commission. The effectiveness of such registration statement is one of
several conditions for the equity line financing.
In addition, Ora purchased a $200,000, 6 percent Convertible Debenture from the
company, of which $150,000 has already been released to the company. Redneck
used a portion of the proceeds from the sale of the Convertible Debenture to
acquire the Love's BBQ restaurant and territory in Reno, Nev.
Commenting on the new Equity Credit Line, William E. Eskew, president and chief
executive officer of Redneck Foods Inc., noted: "The Equity Credit Line is a
major milestone for Redneck. This shows the confidence in Redneck by Ora
Enterprises Ltd. In addition, the Equity Credit line will help Redneck in the
expansion of its core restaurant business."
For additional information, contact: Redneck Foods Inc., William E. Eskew,
president; P.O. Box 642857, Los Angeles, Calif. 90064; telephone 310/207-9881 or
fax 310/207-9891.
This news release may contain forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements involve risks
and uncertainties, including, without limitation, continued acceptance of the
company's products and restaurants, product demand, competition and other risks
and uncertainties detailed from time to time in the company's periodic reports,
including Quarterly reports on Form 10-Q and Annual Reports on Form 10-K.
This release is not an offer or solicitation for the purchase or sale of
securities.
CONTACT: Redneck Foods Inc.
William E. Eskew, 310/207-9881
310/207-9891 fax |
