Creative Eateries Corp. Rescinds October Purchase Agreement with Franchise Capital Corp. and Establishes New Funding Agreement.SCOTTSDALE, Ariz. -- Creative Eateries Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CEAT CEAT College of Engineering and Agro-Industrial Technology (Philippines) CEAT Contractor Evidence Audit Team CEAT Community Emergency Action Team CEAT Civil Engineering and Architectural Team ) and Franchise Capital Corp. (OTCBB: FCCN FCCN Fundacao para a Computacao Cientifica Nacional ) mutually agreed to rescind the Oct. 4, 2005, purchase agreement under which Creative Eateries Corp. was acquiring interests in restaurants and concepts from Franchise Capital Corp. Franchise Capital Corp. has returned, for cancellation, the 3,583,667 shares of Creative Eateries Corp. stock they were holding. This cancellation of stock will result in an approximate 10% reduction in the issued and outstanding stock of CEAT. Creative Eateries Corp. and Franchise Capital Corp. executed a rescission The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed. By Agreement and funding agreement Funding Agreement Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time. Notes: Funding agreements are marketed to mutual fund companies and municipal reinvestments. under which Creative Eateries has agreed to provide the needed capital to develop Kokopelli Sonoran Grill and Comstock Jake's through April 2006. In consideration for providing funding as scheduled, Creative Eateries would receive an amount equal to 50% of profits received by Franchise Capital Corp. from Kokopelli Sonoran Grill and Comstock Jake's for a five-year period. About Creative Eateries Corp. Creative Eateries Corp. is a full-service franchise development company that targets emerging and undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. franchise concepts. The company is introducing a line of new restaurant brands that fall into the broad category of "fast-casual/full-service" dining. Creative Eateries Corp. will provide the necessary elements to grow these brands by owning or partnering with the existing restaurant companies, thereby owning equity directly in these brands and by providing the concepts a total Franchise Turnkey Program. This formula is the result of several years of development to provide the tools and support needed to create and sustain a successful restaurant franchise with above average per store returns. Creative Eateries is listed on the 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 Electronic Bulletin Board under the trading symbol Trading symbol See: Ticker symbol CEAT. Look for our Web site at www.creativeeateries.com. For further investment information please call Gary Reid toll-free at 866-475-7539. Special Note Regarding Forward-Looking Statements Forward-looking statements in this news release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this news release that are not strictly historical statements, including without limitation, management's plans and objectives for future operations and management's assessment of market factors, and statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. These forward-looking statements are not guarantees of the company's future performance and are subject to a number of risks and uncertainties, such as our success in acquiring new concepts, funding acquisitions, and successfully adapting and franchising these concepts, and could cause the company's actual results in the future materially to differ from the forward-looking statements. |
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