DALLAS, Aug. 16, 2006 (PRIMEZONE) -- The Great American Food Chain, Inc. (Pink Sheets:GAMN), a restaurant holding company and concept developer, announced today that it has completed the acquisition of 90% interest in the Kokopelli Franchise Company, LLC, owner of Kokopelli Fresh Mexican Grill concept, from Franchise Capital Corporation (Pink Sheets:FCCN), in exchange for 720,629 of common stock in GAMN. Under terms of the agreement, all shareholders of record of FCCN stock as of August 31, 2006 will receive a dividend of 1 share of restricted common stock in GAMN for every 100 shares held in common stock of FCCN.
GAMN's CEO Edward Sigmond was quoted as saying, "We are very excited about the opportunity this acquisition gives The Great American Food Chain, Inc. We believe the Kokopelli Fresh Mexican Grill concept will be a major competitor in the quick service Mexican food market. An additional restaurant is scheduled to open in Livonia, a suburb of Detroit, Michigan, in September this year. Other locations are scheduled to open in Phoenix, AZ; Portland, OR; Reno, NV; Riverside, CA; Jacksonville, FL; and Charlotte, NC by the 4th quarter this year. Kokopelli Franchise Company is poised for expansion with over 70 franchises having been sold to date. By design, The Great American Food Chain has been conservative in its undertakings to date. This acquisition adds a tremendous concept to our portfolio and provides us with a presence in a vast number of markets."
About The Great American Food Chain, Inc.
The Great American Food Chain, Inc. is a restaurant holding company specializing in the development and expansion of proven independent restaurant concepts into multi-unit locations through corporate owned stores, licensing, and franchising opportunities. The Great American Food Chain currently owns two concepts, Kokopelli Fresh Mexican Grill, and Spikes Boneyard Grill, and is finalizing a licensing agreement with a third concept. GAMN is located in Dallas, Texas. For more information about The Great American Food Chain, see http://www.thegreatamericanfoodchain.com. Information on our website is not part of this press release.
Forward-Looking Statements
Any statements in this press release about The Great American Food Chain's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). These statements are often, but not always, made through the use of words or phrases such as "believe," "will," "expect," "anticipate," "estimate," "intend," "plan," "forecast," "could," and "would." There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: limited operating history, need for future capital, risks inherent in the development and commercialization of restaurant concepts, protection of the Company's intellectual property, and economic conditions generally. Additional information on potential factors that could affect results and other risks and uncertainties are detailed from time to time in the Company's periodic reports. The Great American Food Chain claims the protection of the safe harbor for forward-looking statements under the Act and assumes no obligation and expressly disclaims any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events.