LOS ANGELES, July 6, 2007 (PRIME NEWSWIRE) -- Grill Concepts, Inc. (Nasdaq:GRIL) said today it raised $14.1 million, before deductions for fees and expenses, through a private offering of common stock and warrants to institutional and other investors.
Philip Gay, president and chief executive officer of Grill Concepts, said the majority of the proceeds of the offering will be used to fund an accelerated restaurant expansion program, as well as to pay down debt, including the recent buy out of Hotel Restaurant Properties, and for general working capital purposes.
"The offering strengthens our balance sheet and also allows us to continue executing our previously announced growth program, bringing our Daily Grill and Grill on the Alley restaurant concepts to new geographic locations and expanding within selected existing markets," Gay said. "We recently signed leases and a management agreement for new Daily Grill restaurants in Austin and North Dallas, Texas; Phoenix, Arizona; Fresno, California; Boston, Massachusetts; and Tulsa, Oklahoma. We expect to open at least four new restaurants during 2007, indicative of our accelerating expansion plans."
Two million Grill Concepts shares were sold by the company and 100,000 shares by Robert Spivak, co-founder and former chief executive officer, at $7.00 per share. The warrants allow holders to purchase 735,000 additional shares of common stock and are exercisable for a period of five years at $8.05 per share, representing a 15% premium over $7.00 per share, as priced on July 2, 2007. Investment bankers Oppenheimer & Co. and Roth Capital Partners advised Grill Concepts on this transaction.
About Grill Concepts, Inc.
Grill Concepts owns, manages and licenses upscale casual and fine dining, full service restaurants under two core brand names: The Grill on the Alley and Daily Grill. The company operates 26 restaurants, including five The Grill on the Alley-branded restaurants in Beverly Hills, Hollywood, San Jose, California; Chicago, Illinois; and Dallas, Texas, as well as 21 Daily Grill restaurants in Southern and Northern California; the Washington, D.C. metropolitan region; Houston, Texas; Portland, Oregon; Memphis, Tennessee; and Seattle, Washington.
This news release contains forward-looking statements, which are based on current operations, plans and expectations. Such statements include, but are not limited to, the company's ability to continue expanding its restaurant network and opening at least four new restaurants during 2007. Actual results may differ materially from these statements due to risks and uncertainties beyond the company's control, which are detailed from time to time in its filings with the United States Securities and Exchange Commission.