Merry X-Mas from Carl, Jr.'s!!!
Hey Bob, looks like this thing is going to be growing even faster than you or I thought.
Quite a complicated transaction taking place between Green Burrito Food Co.(GBFC), Carl Karcher Enterprises (CKR), Fidelity National Financial (FNF), and Timber Lodge Steakhouses (TBRL).
1. TBRL issues shares to CKR for between 12 and 20 JB restaurants that will be converted to Timber Lodge Steakhouses. All of these restaurants will be in the Southwestern US.
2. GBFC issues .8276 shares for each outstanding share of TBRL.
3. FNF exercises warrants for 1,000,000 shares of GBFC at $5.
3. GBFC uses the $5 million from FNF to aid in the renovation of the JB stores to Timber Lodge stores.
At first I was more than skeptical about a company with about $4 million in sales for all of 1997 buying Timber Lodge. Then I looked through some of the recent news of GBFC. The driving force behind GBFC is the Chairman of FNF, CKR, and GBFC; one William Foley,II.
His involvement in all the entities should make this a less complex transaction.
Also, in the 12/13 MPLS. paper, the transactions are expected to be completed by 2/1/98. Now the only question is whether to sell, or convert TBRL shares into GBFC shares.
Marko |
