SOURCE: Meritage Hospitality Group Inc.

February 12, 2007 09:31 ET

Meritage Now Trading on Pink Sheets; Application to OTCQX Pending

GRAND RAPIDS, MI -- (MARKET WIRE) -- February 12, 2007 -- Meritage Hospitality Group Inc. (PINKSHEETS: MHGP), one of the nation's premier hospitality companies and only publicly traded Wendy's & O'Charley's restaurant franchisee, is issuing this press release to clarify that a 1-for-300 reverse stock split of the Company's issued and outstanding common shares, followed immediately by a 300-for-1 forward stock split of its common shares, was completed on January 23, 2007. As a result of this transaction, the Company's record common shareholders fell below 300, and the Company terminated its registration of common shares with the Securities and Exchange Commission and also terminated its listing of the Company's common shares on the American Stock Exchange. The Company now has approximately 5,400,000 common shares issued and outstanding, with an estimated public float of 3,000,000 common shares (i.e., shares held by those other than officers, directors or 10% shareholders).

As a result of the stock splits, effective January 23, 2007, Meritage's common shares are quoted on the Pink Sheets under the symbol MHGP.PK. In addition, the Company has made application to the OTCQX -- a new premium listing service offered by Pink Sheets that is intended to provide a premier trading, quotation and disclosure market for Meritage's common shareholders. This new premium tier listing will commence trading on March 5, 2007.

Meritage is one of the nation's premier franchise operators, currently operating 53 restaurants in two brands; Wendy's in the QSR Segment and O'Charley's in the Casual Dining Segment. Headquartered in Grand Rapids, Michigan, Meritage has approximately 2,000 employees. In addition, the Company has announced plans to engage in the development of waterfront hospitality development opportunities on the island of Eleuthera, Bahamas. The development is subject to permits, the economic feasibility of the project and various conditions.

Contact Information

    James R. Saalfeld
    Vice President & Chief Administrative Officer
    Meritage Hospitality Group Inc.
    616/776-2600 x 1020