Good Times Restaurants Inc. (NASDAQ: GTIM) today announced that in
accordance with the Certificate of Designations, Preferences, and Rights
of its Series C Convertible Preferred Stock, on March 28, 2014, Small
Island Investments Limited converted all 355,451 shares of the Company’s
Series C Convertible Preferred Stock, into 710,902 shares of the
Company’s Common Stock. The effects of the conversion are to eliminate
the Company’s payment of dividends on the Series C Convertible Preferred
Stock and to eliminate the possible need for the Company to redeem the
Series C Convertible Preferred Stock for a cash payment.
The Company also said that together with the exercise of approximately
823,000 of its outstanding B warrants for the purchase of 411,500 common
shares to date, it has received approximately $1,000,000 of proceeds and
had a total cash balance of approximately $5,700,000 on its balance
sheet as of March 31, 2014. There is approximately an additional
$2,100,000 of B Warrant proceeds available if fully exercised prior to
their expiration in May, 2014. Boyd Hoback, President and CEO, said, “We
currently have no long-term debt and without the need to redeem the
Convertible Preferred Stock, we have more capital with which to build
new restaurants. Combined with our increasing cash flow from operations,
we anticipate using our capital for continued remodeling of existing
Good Times restaurants, development of new Good Times restaurants, a new
point-of-sale system and additional Bad Daddy’s Burger Bar restaurants
in fiscal 2014 and 2015.”
About Good Times Restaurants Inc.
Good Times Restaurants Inc. (GTIM) operates Good Times Burgers & Frozen
Custard, a regional chain of quick-service restaurants located primarily
in Colorado, in its wholly owned subsidiary, Good Times Drive Thru Inc.
Good Times provides a menu of high-quality all-natural hamburgers, 100%
all-natural chicken tenderloins, fresh frozen custard, fresh-cut fries,
fresh lemonades and other unique offerings. Good Times currently
operates and franchises 37 restaurants.
GTIM owns and operates Bad Daddy’s Burger Bar restaurants through its
wholly owned subsidiary, BD of Colorado LLC and will franchise Bad
Daddy’s Burger Bar restaurants through its 48% ownership of Bad Daddy’s
Franchise Development LLC. Bad Daddy’s Burger Bar is a full-service,
upscale, “small box” restaurant concept featuring a chef-driven menu of
gourmet signature burgers, chopped salads, appetizers and sandwiches
with a full bar and a focus on a selection of craft microbrew beers in a
high-energy atmosphere that appeals to a broad consumer base.
Good Times Forward Looking Statements
This press release contains forward looking statements within the
meaning of federal securities laws. The words “intend,” “may,”
“believe,” “will,” “should,” “anticipate,” “expect,” “seek” and similar
expressions are intended to identify forward looking statements. These
statements involve known and unknown risks, which may cause the
Company’s actual results to differ materially from results expressed or
implied by the forward looking statements. These risks include such
factors as the uncertain nature of current restaurant development plans
and the ability to implement those plans, delays in developing and
opening new restaurants because of weather, local permitting or other
reasons, increased competition, cost increases or shortages in raw food
products, and other matters discussed under the “Risk Factors” section
of Good Times’ Annual Report on Form 10-K for the fiscal year ended
September 30, 2013 filed with the SEC. Although Good Times may from time
to time voluntarily update its forward looking statements, it disclaims
any commitment to do so except as required by securities laws.
Copyright Business Wire 2014