Dixie Foods International/Preferred Restaurant Brands Consummates Financing, Acquires Locations, Closes Locations And Announces Board Resignation

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Mar 23, 2015, 09:00 ET

LAS VEGAS, March 23, 2015 /PRNewswire/ -- Dixie Foods International, Inc. (OTCQB: DIXI; the "Company"), which recently announced that it is changing its name to "Preferred Restaurant Brands", announced that it has:

consummated a $1,000,000 loan from TCA Global Fund Management Group's TCA Global Credit Master Fund, L.P. ("TCA");
consummated the previously-announced acquisition of two Papa John's locations in the Fresno, California area;
closed two of its franchised Capriotti's Sandwich Shop location: at the Green Valley Ranch Casino in Henderson, Nevada and in San Marcos, California, and
accepted the resignation from its Board of Directors of Richard Doermer.

"We utilized proceeds of the recently announced TCA loan to: fund the acquisition; repay some obligations, and provide additional working capital," noted DIXI CEO Ken Antos. "These acquisitions represent a natural extension of our plans for the development of the Papa John's brand in the Fresno market and provide us exclusive control of that market. With the addition of these two locations, which cost us less than the cost of opening two locations from scratch and are generating annual revenues in excess of $1,000,000 and are profitable, we now have: three operating locations in the Fresno area; three operating locations in the Sacramento area, and eight additional locations under lease and in various stages of planning/construction in the Fresno and Sacramento areas.

The loan is guaranteed by DIXI's CEO Ken Antos. In connection with the loan, DIXI engaged TCA to advise and assist the Company in a variety of areas related to its financial, strategic and related developmental growth.

"Re our Green Valley Ranch location, our landlord exercised its right to cancel our lease per the original lease we assumed when we acquired that location," noted Antos. "It was not economically viable for us to try to renew that lease at the rates sought by the landlord as the location was only marginally profitable, at best, as is. We have sold, at a premium to book value, some of the equipment we had at that location and redistributed other equipment to our next Capriotti's location."

Added Antos: "we closed our San Marcos location as part of our intensified efforts to increase overall company profitability. We are exploring other concepts to put into that space."

"Re Richard Doermer's resignation, we will miss his involvement at the Board level; however, Richard and various related trusts collectively remain a significant shareholder in the Company," commented Antos. "At this time, we have no intention of replacing him on the Board, leaving it at seven members."

Headquartered in Las Vegas, Nevada, Preferred Restaurant Brands, through its recently-acquired KCI Investments, LLC, now operates:

six Papa John's franchised locations - all in the Fresno and Sacramento areas;
11, franchised Capriotti's Sandwich Shops throughout its development areas - consisting of: parts of Dallas/Fort Worth, Southern California markets (Orange County, San Diego County and parts of Los Angeles County), as well as parts of Las Vegas, and
Elements Fine Casual Dining & Cocktails.

Additionally, the Company has other restaurant concepts in various stages of development, one of which it expects to open within the next few months.

TCA's Global Credit Master Fund is a short duration, absolute return Credit fund specializing in senior secured lending and advisory services to small, mainly listed companies predominately in the U.S., Canada, Western Europe and Australia. This specialist business fills the underserved small-cap lending gap, which exists in these markets, leading to a unique opportunity for investors seeking absolute, uncorrelated returns from the small-cap debt universe.

For information contact:
Richard Groberg
CFO
Preferred Restaurant Brands, Inc.
[email protected]
702 834-7101

This press release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events and similar expressions. Forward-looking statements may be identified by use of words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," or "potential" or similar words or phrases which are predictions of or indicate future events or trends. Statements relating to plans and objectives for future operations, including those relating to KCI Investments, LLC, are based on Preferred Restaurant Brands' current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Any of these statements could prove to be inaccurate and actual events or investments and results of operations could differ materially from those expressed or implied. To the extent that Preferred Restaurant Brands' assumptions differ from actual results, Preferred Restaurant Brands' ability to meet such forward-looking statements may be significantly and negatively impacted. You are cautioned not to place undue reliance on any forward-looking statements and Preferred Restaurant Brands disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, future events or other changes. Please refer to Preferred Restaurant Brands' Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") for the fiscal year ended August 31, 2013 and subsequently filed SEC reports for further information

SOURCE Dixie Foods International, Inc.