CinemaStar Luxury Theaters Announces Automatic Adjustments to Exercise Price and Other Terms of Redeemable Warrants.SAN DIEGO--(BUSINESS WIRE)--Oct. 8, 1997--CinemaStar Luxury Theaters Inc. (Nasdaq:LUXY) announced that the recent $3 million bridge loan to the company by an affiliate of CinemaStar Acquisition Partners L.L.C. has resulted in a reduction in the exercise price, and an increase in the number of shares issuable upon exercise, of outstanding redeemable Redeemable Eligible for redemption under the terms of an indenture. warrants (Nasdaq:LUXYW) and Class B redeemable warrants (Nasdaq:LUXYZ). In addition, the company indicated that upon closing of the proposed $15 million equity investment by CinemaStar Acquisition Partners, additional adjustments to the exercise price and number of shares underlying the company's publicly traded warrants would occur. Such adjustments result automatically from the anti-dilution provisions Anti-Dilution Provision A provision in an option or a convertible security. It protects an investor from dilution resulting from later issues of stock at a lower price than the investor originally paid. contained in the terms of the company's publicly traded Redeemable Warrants. As a result of the signing of the definitive stock purchase agreement with CinemaStar Acquisition Partners and the concurrent completion of the $3 million bridge loan and the related issuance of warrants to CinemaStar Acquisition Partners and its affiliates, the exercise price of the company's redeemable warrants was reduced to approximately $3.70 per share and the number of shares of common stock issuable upon exercise of each redeemable warrant was increased to approximately 1.6216216 shares of common stock. Similarly, the exercise price of the Class B redeemable warrant was automatically reduced to approximately $4.06 and the number of shares of common stock issuable upon exercise of each Class B redeemable warrant was increased to 1.6009852 shares of common stock. The company noted that additional adjustments would occur upon completion of the $15 million equity investment by CinemaStar Acquisition Partners L.L.C. In particular, upon closing of the equity investment and assuming the repayment of the $3 million bridge loan, the as adjusted exercise price of the redeemable warrants and Class B redeemable warrants would be approximately $2.34375 and $2.3381295, respectively. The number of shares of common stock issuable upon exercise of redeemable warrants and Class B redeemable warrants would be approximately 2.50 and 2.44, respectively, upon completion of the equity investment and repayment of the bridge loan. Founded in 1989, CinemaStar Luxury Theaters currently operates seven first-run movie theaters, and has a total of 69 screens in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . CinemaStar theaters feature high quality projection and sound capabilities, including LucasFilm THX A design system that provides realistic sound playback for movie and home theater from THX, Ltd., San Rafael, CA (www.thx.com), an independent spin-off from Lucasfilm, Ltd. The THX Sound System was developed during the production of the Return of the Jedi in 1982 and named after George Stereo Surround Sound An audio recording and playback system that uses five or more channels plus a subwoofer channel. See 5.1 channel and 3D audio. environment system in most auditoriums, along with luxury amenities such as high-back reclining seats and extra wide aisles between seat rows. -0- NOTE: The information contained in this news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risk and uncertainties, such as the statements of the company's plan, objectives, expectations and intentions. The company's actual results could differ materially from those indicated by such statements as a result of various factors, including those discussed in the Company's Form 10-KSB and Form 10-QSB on file with the Securities and Exchange Commission. CONTACT: CinemaStar, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. John Ellison Jr. or Alan Grossberg, 619/630-2011 or Pondel Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. & Wilkinson Craig Parsons or Michael Pollock Admiral of the Fleet Sir Michael Patrick Pollock, GCB, LVO, DSC (19 October 1916 – 27 September 2006) was a British officer in the Royal Navy who rose to become First Sea Lord from 1971 to 1974. , 310/207-9300 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion