FLTT NEWS PEOPLE HERE ASKED ME ABOUT THIS STOCK THE OTHER DAY
Wednesday June 10, 1:50 pm Eastern Time
Company Press Release
SOURCE: Fresh'n Lite, Inc.
Fresh'n Lite, Inc. Receives Funding
LONGVIEW, Texas, June 10 /PRNewswire/ -- Fresh'n Lite, Inc. (OTC Bulletin Board: FLTT - news; FLTT) announced today that it has issued $1,500,000 of its 6% Convertible Debentures due May 29, 2000, in a private placement to three accredited investors. The private placement yielded $1,335,000 in net proceeds to the Company (after deduction of the Placement Agent's fees and fees of counsel for the investors.) In connection with the private placement, the Company also issued to the investors warrants to purchase up to an aggregate of 75,000 shares of the Company's common stock. The Company issued to the Placement Agent a warrant to purchase up to 50,000 shares of the Company's common stock. The exercise price for the warrants are $4.40 per share, which is equal to 110% of the average closing bid prices of the Company's common stock for the five trading days immediately preceding May 29, 1998.
The 6% Convertible Debentures can be converted into shares of the Company's common stock. The number of shares of common stock to be issued upon any such conversion will be determined based upon the lesser of (a) $4.00 per share, (the closing bid price of the Common Stock on May 28, 1998), or (b) the average closing bid prices of the Company's common stock for the five trading day period ending on the trading day immediately preceding the date on which such Debenture is converted, multiplied by a discount ranging from 25% to 17.5%. The Company granted to the investors certain registration rights with respect to the shares of common stock underlying the Debentures and the Warrants.
The Investors have agreed to purchase an additional $1,500,000 of 6% Convertible Debentures on or about August 27, 1998, subject to certain conditions. Among other things, the second tranche of the financing is subject to the effectiveness of a registration statement, registering for resale the shares of common stock underlying the Debentures and Warrants.
Curtis A. Swanson, Chief Financial Officer stated, ''We believe that completion of funding will give us the capital necessary to fulfill our expansion business plan which we anticipate will more than triple the Company's revenues. We are very excited about the opportunity to develop out the Street Talk Cafe concept, which we believe is a new and winning niche in the casual dining segment. ''
Henry Leonard, President and Chief Operating Officer stated, ''Over the last 7 months, we have been putting considerable effort into developing our management team and the Street Talk concept. This infusion of capital will assist us in expanding our presence in the healthy casual dining niche in the Dallas area, accomplishing our expansion goals, and becoming a debt free company. These goals were the focus of our 1998 shareholders meeting and 1997 annual report.''
Fresh'n Lite, Inc. is the developer and operator of the Fresh'n Lite Cafe & Grill and Street Talk Cafe concepts, full service casual dining concepts featuring over 100 choices of low fat and non-fat menu items without compromising taste, service, or atmosphere.
This press release contains forward looking statements, which are generally preceded by words such as ''believes'', ''expects'', ''anticipates'', or ''intends''. Such statements are subject to risks and uncertainties, including but not limited to competitive conditions, weather, real estate zoning and permitting complications, and general conditions in the restaurant market.
SOURCE: Fresh'n Lite, Inc.
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