SOURCE: Prime Restaurants, Inc.

August 13, 2007 08:38 ET

Prime Restaurants, Inc. Board of Directors Approves the Creation of a Wholly Owned Subsidiary/Division to Acquire Franchised Restaurant Operations

FT. MYERS, FL--(Marketwire - August 13, 2007) - Prime Restaurants, Inc. (PINKSHEETS: PRSU) today announced that its Board of Directors has approved the establishment of a wholly owned subsidiary/division to acquire established franchises within the restaurant industry.

The company believes that this subsidiary/division will assist in the fast tracking of the company's business plan of increased revenues and locations. The company will hold talks with all of the major restaurant franchisers in the country within the next few weeks.

The company will use no equity funding for these transactions, instead the funding will come from traditional debt financing, thus keeping with the company's policy of non dilutive growth.

"I am very pleased with this additional alternative to grow the company as it will allow us to pursue established branded household name restaurants. It is my intention to grow revenues with the least risk environment as possible to the company," said Cris Galo, President & CEO.

Mr. Galo also stated that he "will focus on established, ongoing proven positive cash flow franchises (resales) as opposed to the more risky start-ups that may not make it. This strategy is in line with previously announced business objectives."

The current share structure pre-share dividend is 40,000,000 shares authorized of which 30,200,000 are outstanding with 24,236,802 shares (these shares carry no conversion or warrant provisions) and are restricted for two years and in management's control, leaving 5,963,198 shares currently in the public float.

The company intends to increase the Authorized Shares to approximately 43,000,000 to accommodate the dividends payable, keeping in mind that the dividend is payable to only the public (free trading) common shareholders and not to any of the restricted shareholders.

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