Country Star Restaurants completes financing.LOS ANGELES--(BUSINESS WIRE)--Oct. 11, 1996--Country Star Restaurants Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market: CAFE, CAFEP CAFEP Certificat d'Aptitude aux Fonctions d'Enseignement du Privé (French) ) announced that it has completed a $4 million private placement of a new issue of non-voting convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". to a single institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. pursuant to Regulation D promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under the Securities Act of 1933, as amended. The preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. is convertible into shares of the company's common stock from time to time based on the current market price of the company's common stock at the time of conversion, provided that in no event can the preferred stock be converted into an aggregate of more than 3,000,000 shares of the company's common stock. Any conversions which would require issuance of common stock in excess of 3,000,000 shares will instead result in redemptions of the preferred stock, at par, plus accrued dividends. The preferred stock bears a dividend of 7 percent per annum Per annum Yearly. which is payable, at the company's option, in cash or shares of the company's common stock. Peter R. Feinstein, president and chief financial officer of the company, stated that "These funds, along with the additional private financing that the company secured during the third quarter, enables the company to continue its expansion plans regarding the building of Country Star Orlando, which will open next year. The company presently anticipates, however, that it will continue to require additional capital in order to continue to expand and operate the Country Star Restaurants." During the third quarter, the company raised an aggregate of $2.7 million from the sale of equity securities to private investors. The company recently announced the signing of a lease to open Country Star Orlando at the Point Orlando Entertainment Center which is expected to be completed in the summer of 1997, and will be located across the street from the Convention Center in Orlando, Fla. Country Star Restaurants Inc. owns and operates three Country Star American Music Grills: in Hollywood, at the entrance to Universal Studios; in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. on the famous "Strip" at Harmon Avenue; and in Atlanta, Ga., in the upscale "Buckhead" neighborhood, the grand opening of which is scheduled for Oct. 13. The foregoing press release contains forward looking statements, including statements regarding, among other items, the timing and direction of the company's growth and additional capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . These forward looking statements are based largely on the company's expectations and subject to a number of risks and uncertainties, certain of which are beyond the company's control. Actual results could differ materially from these forward looking statements as a result of a variety of factors including, among others, completion (and timeliness of the completion) of the Point Orlando Entertainment Center, performance of the company's existing Country Star American Music Grill Restaurants in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Las Vegas and Atlanta, expansion opportunities for future Country Star American Music Grill Restaurants, and prevailing economic conditions as they effect the themed entertainment restaurant industry in general. In light of these risks and uncertainties there can be no assurance that the forward looking statements contained in this press release will in fact transpire or prove to be accurate. CONTACT: Country Star Restaurants Peter R. Feinstein, President, 310/268-2200 |
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