Thursday March 19, 12:52 pm Eastern Time
Company Press Release
Newriders Inc. Chairman Acquires 49 Percent Stake in
M&B Restaurants LLC
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--March 19, 1998--John Martin, a leading
restaurant entrepreneur and chairman of Newriders Inc. (NASDAQ Bulletin Board:NWRD -
news), has acquired a 49 percent stake in M&B Restaurants LLC from the minority shareholder
for $1.5 million in cash.
M&B Restaurants owns and operates the four unit El Paso Barbecue Co. chain. Newriders
owns and operates Easyriders Roadhouse BBQ Cafes and retail outlets.
In October, when Newriders first announced its intention to acquire M&B Restaurants, it said it
would do so through a combination of stock, notes and assumption of debt. The direct cash
investment by Martin, however, replaces the anticipated new debt portion of the acquisition.
''Mr. Martin's investment opens the way for Newriders to acquire M&B entirely as a stock
transaction because Newriders' other senior executive, Bill Prather, holds 51 percent of M&B,
and both have said they intend to merge their interest into Newriders as equity investments,''
said Bill Nordstrom, Newriders' chief financial officer. ''It shows their collective commitment to
building Newriders Inc. into a large communications, retail and restaurant company.''
Nordstrom said also that because Newriders will now have fewer debt obligations, it should help
the company in completing senior debt financing for its acquisition of Paisano Publications, a
process which Nordstrom described as ''going smoothly and on track.''
Statements in this news release that relate to future plans, financial results or projections,
events or performance are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended and fall under the safe harbor. The company's actual results and financial position
could differ materially from those anticipated in the forward-looking statements as a result of a
number of factors, including but not limited to, successful execution of the company's expansion
plans, impact of competition, the availability of additional financing and other risks.
Contact:
Newriders Inc.
Bill Nordstrom, 714/718-4630
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"and both have said they intend to merge their interest into Newriders as equity investments,''
said Bill Nordstrom, Newriders' chief financial officer. ''It shows their collective commitment to
building Newriders Inc. into a large communications, retail and restaurant company.''
Good luck
Pete |
