To: Lee Walsh who wrote (317 ) 12/15/1998 10:31:00 AM From: The Street Read Replies (1) | Respond to of 3351
Company Press Release Harvest Restaurant Group Files Proxy For Shareholders Vote on Tanner's Merger SAN ANTONIO--(BUSINESS WIRE)--Nov. 3, 1998--Harvest Restaurant Group, Inc. (OTC: ROTI - news, ROTIW - news, ROTIP - news, ROTIZ - news) has filed a proxy with the Securities and Exchange Commission, outlining terms and conditions of a merger with TRC Acquisition Corporation (''TRC''), the operator of ''Rick Tanner's Original Grill'' (''Tanner's'') restaurants. It is anticipated that TRC shareholders will own approximately 70% of the merged company on a fully diluted basis and Tanner's restaurant development will be the primary business of the company. Harvest shareholders will keep the same number of shares they currently own. In connection with this merger, the Company has received a commitment from an investor group for $6 million of equity funding, $4 million of which has been deposited in escrow. Tanner's restaurants were founded in 1986. TRC currently has eleven company operated restaurants in the metro Atlanta area and two franchised restaurants located in Montgomery, Alabama and Macon, Georgia. Tanner's management indicates annualized system-wide sales for 1998 are estimated at $15 million. All stores feature chicken fingers, BBQ ribs and pork, rotisserie chicken, salads, shrimp, sandwiches and fifteen freshly prepared vegetables. Large portions of home-style food are served at reasonable prices, appealing to a broad range of customers from families to business clientele. Twenty-five percent of Tanner's business is take-out or catered. The merged company will be headed by Clyde E. Culp as Chairman and CEO. Culp has held several executive positions in his 28 year career in the hospitality industry, including President/CEO of Long John Silver's, President/CEO of Embassy Suites and Chairman-founder of DAVCO Foods, Inc., the largest Wendy's hamburger franchisee. Visit Harvest Restaurant Group's web site at harvestrotisserie.com . Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed in the Company's period reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.