Good Times Restaurants Inc. (NASDAQ: GTIM) today announced that it had
received total gross proceeds of $3,091,000 related to the exercise of
the Company's B Warrants and total gross proceeds of $1,146,000 related
to the exercise of the Company’s A Warrants and it had incurred $80,000
of expenses to-date related to the exercise of all Warrants. In August
2013, the Company issued 2,530,000 A Warrants and 2,530,000 B Warrants,
including the underwriter’s exercise of their overallotment option for
Warrants. The B Warrants are for the purchase of 1,265,000 shares of the
Company's common stock on or before May 16, 2014, with every two B
Warrants exercisable for one share of common stock at an exercise price
of $2.50. The A Warrants are for the purchase of 2,530,000 shares of the
Company’s common stock on or before August 16, 2018 at an exercise price
of $2.75.
Boyd Hoback, President and CEO said “With the approximate 40%
appreciation in the price of our stock over the last nine months, we
were able to have approximately 97% of all B Warrants exercised. We hope
to continue to deliver continued growth and improvement in our sales and
profitability throughout this year and be able to continue to see
exercise of the remaining A Warrants, which if fully exercised would
provide an additional $5,795,000 of gross proceeds for our growth and
development. We estimate we will have approximately $8,300,000 in cash
on our balance sheet at the end of May, not including the previously
announced $2.1 million term debt facility for use in our wholly owned
subsidiary Good Times Drive Thru Inc., so we have a good base of capital
which we anticipate using to accelerate our development of Good Times
and Bad Daddy’s Burger Bar restaurants.”
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 36 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