Chanticleer Holdings Announces Extension of Debt with Strategic Investors
Maturity Increased from December 31, 2018 to March 31, 2020 Extending Operational Runway
CHARLOTTE, N.C., Jan. 02, 2019 (GLOBE NEWSWIRE) -- Chanticleer Holdings, Inc. (NASDAQ:BURG) (“Chanticleer” or the “Company”), owner, operator, and franchisor of multiple nationally recognized restaurant brands today announced the extension of the maturity date of its previously issued $6 million debentures with strategic investors. The debentures interest rate remains unchanged while the maturity date has been extended 15 months from December 31, 2018 to March 31, 2020, with the expectation of 50% being paid off by December 31, 2019.
The lead participants continue to consist of a joint venture partner in numerous Little Big Burger restaurants along with a current member of the Company’s Board of Directors, also a franchisee of multiple Little Big Burger restaurants in Southern California. Both are also sizeable equity holders in the Company. The investors received non-cashless warrants priced at $2.25 as part of the transaction.
Fred Glick, President of Chanticleer Holdings, stated, "I’m pleased that our debt holders agreed to extend the maturity of our debt till March 31, 2020. As previously discussed, prior to my taking the role as President, I met with them to discuss my plan and requested time to execute it. I’m grateful they recognized not only the clear fundamental progress made over the last year, but the value that could be further unlocked by affording me ample time to do what I was brought in to do. They fulfilled their promise to me and it’s my full intention do my part in return.”
Glick continued, “Recent weeks continues to affirm the reasons that drove me to join the Company to begin with. I’m highly confident that we have a solid foundation to build atop going forward and that the market is currently not properly awarding us a valuation commensurate with our improving fundamentals or the underlying intrinsic value of our assets. My and Mike’s goal is to correct this disparity through a concerted and collective effort focused on measurable results, transforming our up and coming company into a larger and more formidable player in the space.”
Additional details may be found in a Form 8K which will be filed with the Securities and Exchange Commission.
Mike Pruitt, Chanticleer Chief Executive Officer stated, “I would like to thank our debt holders for their continued commitment to our Company including their willingness to allow us to hold out for the right price while we look to sell non-core assets. Considering recent growth in our Little Big Burger brand resulting in store count nearly doubling in 2018, the debt extension is a pivotal moment allowing us to build atop of recent progress. With a proven operator like Fred helping to build our brands through driving positive employee and guest experiences expected to result in revenue growth and optimized profits, we are optimistic about the future for our Company, employees and shareholders.”
About Chanticleer Holdings, Inc.
Headquartered in Charlotte, NC, Chanticleer Holdings owns, operates, and franchises fast, casual, and full-service restaurant brands, including American Burger Company, BGR – Burgers Grilled Right, Little Big Burger, Just Fresh, and Hooters. For more information, please visit: www.chanticleerholdings.com.
Any statements that are not historical facts contained in this release are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipates,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing or required licenses, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the companies do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
Released January 2, 2019