LAFAYETTE, La., Nov. 6, 2013 /PRNewswire/ -- American Restaurant Concepts, Inc. (OTCBB: ANPZ), operator and franchisor of the award-winning Dick's Wings & Grill® restaurants, announced today that Blue Victory Holdings, Inc. has elected to convert all of the Company's outstanding debt into shares of common stock.
The Company entered into a credit facility with Blue Victory Holdings, Inc. on September 13 through which the Company can borrow up to $1 million on a revolving basis for general working capital purposes. Borrowings under the credit facility are unsecured, may be prepaid and re-borrowed without penalty, and bear interest at an annualized rate of 6%. Blue Victory has the right to convert all outstanding principal and accrued interest under the credit facility into shares of the Company's common stock. A total of $415,316 in loans made to the Company by Blue Victory prior to September 13 was incorporated into the credit facility.
As of November 5, the Company had $475,626 of principal and interest outstanding under the credit facility. Blue Victory elected to convert all of the principal and interest into shares of the Company's common stock at an effective conversion price of $1.95 per share. Accordingly, Blue Victory will be entitled to receive 243,911 restricted shares of common stock, which it intends to have issued directly to the 50 long-term, accredited investors that comprise its minority shareholder base. All price and share numbers reflect the recently completed 1-for-7 reverse stock split completed by the Company on November 4.
"The decision by Blue Victory to convert our debt into stock is a big endorsement for us," stated Richard Akam, CEO of American Restaurant Concepts. "This debt conversion shows the support Blue Victory has for our growth plan and the progress we have made to date in executing upon it. The debt conversion is also important because we now have the financial flexibility that we need to complete the next stage of our growth strategy. We are pursuing several major transactions that will diversify American Restaurant Concepts into other restaurant brands. We intend to use our credit facility with Blue Victory to help finance these deals."
This debt conversion represents the second debt settlement completed by the Company this month. On November 1, the Company issued a total of 200,000 pre-split shares of common stock (28,572 post-split shares) to the holders of the promissory note originally issued to The Carl Collins Trust in January 2012 in settlement of a total of $55,000 of principal and accrued interest. Earlier this year, the Company paid Bank of America $50,000 in settlement of $370,000 of principal, accrued interest and other amounts due under the October 2008 loan agreement. The Company has now settled a total of $900,626 of debt during 2013, representing virtually all of its outstanding debt.
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Lafayette, Louisiana, is the operator and franchisor of the Dick's Wings & Grill® full-service restaurants and Dick's Wings Express® express restaurants. The Company prides itself on its award-winning chicken wings, for which it boasts 365 mouth-watering flavors. It offers customers the freshest wings, sandwiches, burgers, wraps, salads and signature waffle fries, all in a unique setting that combines a family-friendly environment with a sports-themed restaurant. The Company currently has 15 full-service restaurants and one express restaurant. For more information, please visit the Company's website at www.dickswingsandgrill.com.
About Blue Victory Holdings, Inc.
Blue Victory Holdings, Inc., headquartered in Lafayette, Louisiana, is a private equity firm that is focused primarily on creating shareholder value by investing in the development and management of branded assets and other assets. The company concentrates its activities on providing investment capital to seasoned operators for opening, managing, rehabilitating, buying and disposing of a variety of undervalued assets for the purpose of maximizing shareholder value including the human capital management industry, real estate industry, restaurant industry, and financial planning industry. The company has financially supported various endeavors that have led to the acquisition/disposition of more than 60 restaurants, 300 rental units and an offshore staffing company in Louisiana, Georgia, South Carolina and Florida. Shareholders, investors and affiliates can get more information on the company at its website at www.bluevictoryholdings.com.
Safe Harbor Provision
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the Company's future financial position, business strategy, plans and objectives, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, those factors set forth in the Company's Annual Report on Form 10-K for the year ended December 30, 2012 and its other filings and submissions with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.
SOURCE American Restaurant Concepts, Inc.