LOS ANGELES, July 6, 2007 (PRIME NEWSWIRE) -- In a news release issued earlier today (7/6), under the headline "Grill Concepts Raises $14.1 Million in Private Offering," we have been notified by the company that multiple edits have been made to the original -- including the headline itself. The following version represents the complete, corrected version and should be used in its entirety.
Grill Concepts, Inc. (Nasdaq:GRIL) today announced that, following the close of the market on July 2, 2007, it had entered into definitive subscription agreements to raise $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 off funded debt, including the recent buy out of Hotel Restaurant Properties, and for general working capital purposes.
"The offering will strengthen our balance sheet and also allow 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."
Grill Concepts and Robert Spivak, co-founder and former chief executive officer, expect to sell 2 million shares and 100,000 shares, respectively, at $7.00 per share, a $0.01 premium to the July 2, 2007 closing price of $6.99. 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 the $7.00 per share offering price. Net proceeds to the company, after offering expenses, are expected to be $13.1 million. Oppenheimer & Co. Inc. and Roth Capital Partners acted as placement agents for Grill Concepts on this transaction. Completion of the transaction is subject to various closing conditions as set forth in the subscription agreements included in company's Form 8-K filed today.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities. At the time of their issuance, the shares of common stock and the underlying shares of common stock issuable upon exercise of the warrants have not been registered under the Securities Act, or any applicable state securities laws and may not be offered or sold in the United States, absent registration or an applicable exemption from such registration requirements.
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 satisfy the closing conditions set forth in the subscription agreements relating to the offer and sale of shares in the private placement and 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.