"Java Centrale, Inc. Announces The Sale Of Its Oh La La! Division"
SACRAMENTO, Calif., Nov. 26 /PRNewswire/ -- Java Centrale, Inc. (Nasdaq: JAVC) today announced that a definitive agreement has been signed to sell its Oh La La! division for $2.7 million to The Good Food Fast Companies based in Irvine, California. The sale is scheduled to close by December 10, 1996, subject to certain closing conditions. The Company will receive $1.25 million in cash, a three-year convertible Note for $750,000, and convertible preferred stock in The Good Food Fast Companies valued by the Company at $700,000. Java Centrale, Inc. acquired the Oh La La! chain of 14 espresso bars and a full line bakery on March 30, 1995, and anticipates reporting a profit on the sale of approximately $200,000. The convertible securities of The Good Food Fast Companies will give the Company an investment in the fast-growing bagel business.
Gary Nelson, President and Chief Executive Officer of Java Centrale, Inc., said, "Management has made a strategic decision to clearly define its focus on growing the Java Centrale and the recently acquired Paradise Bakery & Cafe brands." Nelson said that the recent successful openings of the Paradise Bakery & Cafe in Denver, Colorado, and at the Phoenix Airport in Arizona are reporting "better than anticipated sales." Those locations are the first to introduce a new look for the Paradise chain and are expected to be the prototypes for growth opportunities across the United States and Canada.
Java Centrale, Inc., a publicly traded company founded in 1992, currently operates or franchises 34 Java Centrale cafes and espresso carts, with new locations scheduled to be open before the end of the year in Newport Beach, Placentia, Long Beach, Hermosa Beach and Redondo Beach, California. The Company's Paradise Bakery & Cafe subsidiary will be opening an additional location before years end in the Metro Center in Phoenix, Arizona, as well as a remodeled bakery & cafe in the Sun Valley Mall in Concord, California. There are currently 16 company-owned Paradise Bakery & Cafes and 36 franchisees operating in Arizona, California, Colorado, Hawaii, Oklahoma, Oregon, Texas and Washington.
SOURCE Java Centrale Inc.
-0- 11/26/96
/CONTACT: Steven J. Orlando, Chief Financial Officer of Java Centrale, 916-568-2310/
This was a release posted after the last report. Notice that they will post a $200,000.00 profit for the sale. And also they stated higher than expected revenues.
Just posted for info. |
