CHARLOTTE, NC--(Marketwired - May 05, 2017) - Chanticleer Holdings, Inc. (
The debentures will bear interest from the date of closing at 8% per annum, payable quarterly and will mature December 31, 2018. The investors will also receive warrants to purchase 12 million shares of common stock of the Company. The warrants will not be exercisable for six months following the Closing Date.
$5,000,000 of proceeds will be used to pay off, in full, the Florida Mezzanine Financing, which bears interest of 12% per annum. Of the remaining proceeds, $500,000 will be applied to transactional expenses and working capital, and $500,000 will be reserved for new store development, subject to approval by the investor representatives.
The Company has agreed to support an investor designee to serve on the Board of Directors.
Michael Pruitt, Chairman and CEO of Chanticleer Holdings, stated, "This financing reduces the interest rate on a large portion of our debt, from 12% to 8%, provides new working capital, and aligns the Company with strategic partners supporting the expansion of Little Big Burger. Over the past year we have driven organic growth, divested underperforming assets and significantly enhanced margins and profitability. This financing alleviates pressure on our balance sheet and provides an improved foundation upon which to drive growth in the best performing asset of our business."
T.R. Winston & Co. served as placement agent.
About Chanticleer Holdings, Inc. Headquartered in Charlotte, NC, Chanticleer (HOTR), owns, operates and franchises fast casual and full service restaurant brands, including American Burger Company, BGR: The Burger Joint, Little Big Burger, Just Fresh and Hooters.
Forward-Looking Statements: 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.
Contact Information: Company Contacts: Michael Pruitt (704) 366-5122 x 1 mp@chanticleerholdings.com Mark Roberson (704) 817-5881 mroberson@chanticleerholdings.com Investor Relations Contact: John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) Phone: 203.972.9200 jnesbett@institutionalms.com
