HOUSTON, Jan. 29, 2020 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's" or the "Company") today announced that its Board of Directors has unanimously determined to amend its existing shareholder Rights Agreement (the "Rights Agreement"), adopted on February 15, 2018, in order to extend its expiration date from February 15, 2020 to February 15, 2021. The Board anticipates adopting the amendment on or about February 14, 2020 and intends to seek stockholder approval of the amendment as soon as practicable thereafter.
The Board had previously determined not to seek shareholder approval of the existing Rights Agreement at the Company's 2020 Annual Meeting of Shareholders, to be held on February 5, 2020, because it had anticipated entering into a stockholders' agreement with its largest shareholders, Christopher J. Pappas, Harris J. Pappas and Pappas Restaurants, Inc. As the parties have not yet reached an agreement, the Board determined that it would be in the best interests of the Company and its shareholders to extend the term of the Rights Agreement, but also to seek shareholder approval of the same.
Luby's, Inc. (NYSE: LUB) operated 118 restaurants nationally as of January 21, 2020: 78 Luby's Cafeterias, 39 Fuddruckers, and one Cheeseburger in Paradise restaurant. Luby's is the franchisor for 95 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, and Panama. Luby's Culinary Contract Services provides food service management to 33 sites consisting of healthcare, corporate dining locations, sports stadiums, and sales through retail grocery stores.
Forward Looking Statements
The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve substantial risks and uncertainties. Actual results or events could differ materially from the plans, intentions, and expectations disclosed in such forward-looking statements. The words "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that might cause such differences include general business and market conditions and other factors included in Luby's reports filed with the SEC, particularly in the "Risk Factors" sections of Luby's latest Annual Report on Form 10-K for year ended August 28, 2019, filed with the SEC on November 26, 2019, as such Risk Factors may be updated from time to time in subsequent reports. Luby's does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For additional information contact:
Dennard Lascar Investor Relations
Rick Black / Ken Dennard
SOURCE Luby's, Inc.