All American Food Group Addresses Bulletin Board Listing
July 22, 1998 12:21 PM
SOUTH PLAINSFIELD, N.J., July 22 /PRNewswire/ -- All American Food Group, Inc. AAFG disclosed today that as a result of a decision by the Nasdaq listing panel, the common stock of All American Food Group, Inc. had begun trading on the OTC Bulletin Board. The Company received notification of the panel's decision after the market closed on July 16 and began trading on the Bulletin Board on July 17.
Reacting to the news, the Company's Chairman Andy Thorburn stated, "Although we recognize the value of the Nasdaq listing, and did everything possible to maintain our listing, our primary concern is to maintain the maximum liquidity for our shareholders, and in that regard we are happy that there was no interruption in the trading of the Company's stock. We also hope that with the continued growth of the Company, combined with the ongoing improvement in the Company's operating results, will enable us to reapply for Nasdaq listing in the near future."
Mr. Thorburn also stated that the delisting from Nasdaq had delayed the Company's efforts to complete its acquisition of Ben's Bagels. The cash portion of the acquisition was to be raised by the sale of Convertible Preferred stock in AAFG, and the listing status of the Company's stock has complicated the negotiations with the purchasers of the Preferred stock. The Company has been granted an extension by Benny's which will enable it to continue its efforts to complete the necessary funding, and the Company is still hopeful that the transaction can be completed. The Company emphasizes however that investors should be aware that the completion of the Benny's transaction cannot be guaranteed at this time.
The Company also reported that the delisting is expected to have no effect on its efforts to complete the acquisition of the three operating companies from CRT, as announced by the Company on July 1, 1998. That transaction is still on schedule, and the Company is proceeding with its due diligence. The Sellers are aware of the status of the Company's stock listing, and pending the completion of the due diligence process, are prepared to complete the transaction as scheduled.
All American Food Group, Inc. is the franchiser of Goldberg's New York Bagel stores, and the SoupChef gourmet soup concepts.
This
|
