Printer Friendly


 LIVINGSTON, N.J., Dec. 7 /PRNewswire/ -- Mascott Corporation (NASDAQ: DINE) (the "Corporation") announced today that on December 3, 1993, it entered into a Stock Purchase and Secured Convertible Debenture Purchase Agreement with Richard Gillman pursuant to which Richard Gillman purchased 1,646,537 shares of the Corporation's Common Stock from the Corporation at $.3125 per share (representing the closing sale price of the Corporation's Common Stock on December 2, 1993). The purchase price consisted of $200,000 in cash and the forgiveness of $314,543 of the $1,814,543 owed to Richard Gillman by the Corporation as of December 3, 1993.
 In addition, in exchange for the $1,500,000 Revolving Credit Note of the Corporation which was due on demand at any time after December 31, 1993, the Corporation issued to Richard Gillman a $1,500,000 Secured Convertible Debenture which bears interest at the Prime Rate plus one percent. Interest on the Secured Convertible Debenture is payable semi-annually either in cash or, at the option of the Corporation, in shares of Common Stock and principal is payable upon the demand of Richard Gillman at any time after January 1, 1995. Richard Gillman may convert the Secured Convertible Debenture into 4,800,000 shares of Common Stock at any time in whole or in part prior to or on December 31, 1996. The Secured Convertible Debenture is secured by the continuing pledge of the capital stock of the Corporation's Cinnabon bakery subsidiaries consistent with the terms of the existing 1992 Pledge Agreement between Richard Gillman and the Corporation.
 The Corporation believes that the capital infusion, partial debt forgiveness and the extension of time until the repayment of principal may be demanded on the Secured Convertible Debenture will provide the Corporation with the working capital necessary to continue to implement its business plan in attempt to ultimately achieve profitability.
 Mascott Corporation currently owns and operates 12 Cinnabon bakery franchises and 3 Willie Mays Chicken locations in regional shopping malls, as well as 1 full-service restaurant, Markers Restaurant & Bar, located in Jersey City, New Jersey.
 -0- 12/7/93
 /CONTACT: Scott M. Gillman, Chief Executive Officer of Mascott, 201-535-1000/

CO: Mascott Corporation ST: New Jersey IN: LEI SU: TNM

LG -- NY061 -- 1321 12/07/93 13:34 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 7, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters