SOURCE: Prime Restaurants, Inc.

October 24, 2007 10:28 ET

Prime Restaurants, Inc. Announces That It Has Increased Its Authorized Common Shares to 180,000,000 From 121,000,000

FT. MYERS, FL--(Marketwire - October 24, 2007) - Prime Restaurants, Inc. (PINKSHEETS: PRSU) today announced that it has increased the company's authorized common shares from 121,000,000 to 180,000,000.

The company has taken this action in anticipation of closing a previously announced acquisition utilizing restricted common shares; all of the increased shares will remain in the company treasury until the closing. The entire block of increased shares (59,000,000) are and will remain restricted for two years.

Upon completion of this transaction the share structure of the company will be as follows:

Authorized Common Shares:              180,000,000
Restricted Common Shares:              155,733,240
Common Shares in the Public Float:      24,266,760

The company has entered into several verbal and written agreements regarding acquisitions, many of these acquisitions contain certain legalities that are now slowing down the closing of said acquisitions; per the company's attorneys the company is confident that these acquisitions will become reality regardless of the time frames involved.

"I am confident that all of the pending acquisitions will come to fruition, resulting in several million dollars worth of revenues to the company. As in any endeavor nothing works per the plan, regardless, I am confident in the firm's growth plan and all of its announced acquisitions that they will become reality," said Cris Galo, President & CEO.

Mr. Galo also stated, "I would like to thank my staff and advisors for all the hard work and time they have put into the research and due diligence regarding these acquisitions. As it is anticipated with the addition of this acquisition and its balance sheet the PPS will be adjusted accordingly, 'the seller would like to state that we believe in this business plan so much that we have agreed on taking restricted shares as payment for our business and anticipate maximum returns as such.' I appreciate and respect the seller's vision and foresight regarding the growth of the company and its plans, as I have stated, we are here to build a first class company and anything less is unacceptable."

About Prime Restaurants, Inc.: Prime Restaurants is a start-up restaurant holding company with an eye towards rapid expansion and revenue growth within the next 12 to 24 months. The company will focus only on major well-populated areas such as New York, Connecticut, New Jersey, Florida, Pennsylvania and North and South Carolina with locations that will generate a minimum of $2,000,000 per year at each location.

This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Contact Information

  • Contact:
    Prime Restaurants, Inc.
    Investor Relations
    Tel: 1-866-532-5908
    Fax: 1-239-437-5777