LAFAYETTE, La., Sept. 16, 2013 /PRNewswire/ -- American Restaurant Concepts, Inc. (OTCBB: ANPZ), operator and franchisor of the award-winning Dick's Wings & Grill® restaurants, announced today that it has successfully closed on a $1 million credit facility with Blue Victory Holdings, Inc.
The credit facility provides the Company with up to $1 million of additional funding on a revolving basis over the next five years that the Company may use 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%. The principal and interest may be converted by Blue Victory at its discretion into shares of the Company's common stock based on the then current trading price of the Company's common stock.
Blue Victory has made loans to the Company over the past 18 months that were interest free and payable on demand in the aggregate amount of $415,316. These loans have been rolled into the new credit facility.
In addition, the Company has entered into a consulting agreement with Blue Victory for a five-year term whereby Blue Victory will assist the Company with all aspects of its business, including: the identification and acquisition of undervalued restaurants and other assets; asset management, operation and development; branding, marketing and advertising; mergers, acquisitions, divestitures and joint ventures; and equity and debt financing.
"We are very pleased to have this strong showing of support from Blue Victory Holdings, which has provided us with an important source of committed financing through mid-2018," stated Richard Akam, Chief Executive Officer of American Restaurant Concepts. "This new credit facility heightens our liquidity position and enhances our ability to invest in growth opportunities. The favorable terms of this credit facility reflect our improved financial position, strong industry track record and anticipated growth. We appreciate the confidence Blue Victory has demonstrated in our strategic plan and believe this credit facility, coupled with Blue Victory's heightened advisory role, will help us achieve our targeted aggressive growth during the remainder of 2013 and into the future."
"American Restaurant Concepts is an exciting investment opportunity for us," stated Yannick Bastien, Director of Operations of Blue Victory Holdings. "The Company has a strong brand, and we are excited about the Company's plan to diversify into other brands. With the addition of key management and other personnel during 2013, the Company is now strategically positioned to exploit numerous opportunities in its target markets. We look forward to building on our already strong and successful working relationship with the Company and providing strategic guidance and support as it continues to grow."
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Lafayette, Louisiana, is the operator and franchisor of Dick's Wings & Grill® full-service restaurants and Dick's Wings Express® express restaurants. The Company prides itself on the 365 original mouth-watering flavors it has created for its premium grade chicken wings. Dick's Wings 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. Dick's Wings & Grill's chicken wings have won numerous awards in Florida and Georgia. The Company currently has 15 full-service restaurants and 2 express restaurants. Sixteen of the restaurants are located in Florida, with one located in Georgia. For more information, please visit the Company's website at www.anpzstock.com.
About Blue Victory Holdings, Inc.
Blue Victory Holdings, Inc., headquartered in Lafayette, Louisiana, is a private equity firm that is focused primarily on the development and management of branded assets, real estate and other assets. The company concentrates its activities on opening, managing, rehabilitating, buying and disposing of a variety of undervalued assets for the purpose of maximizing shareholder value. The company, together with its affiliates, is currently the owner, franchisor and operator of more than 60 restaurants in Louisiana, Georgia, South Carolina and Florida, and produced approximately $29 million in revenue during 2012. For more information on the company, please visit 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, budgets, projected revenues and costs, and plans and objectives of management for future operations, 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 Securities and Exchange Commission. 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.