New York, Dec. 31 - Good Times Restaurants Inc. said it will raise $2.95 million from the sale of series B convertible preferred stock in a private placement.
The company will sell 1.24 million shares at $2.50 per share. It received $2.95 million of cash and advice and assistance worth $150,000 for the sale of 1 million of the shares.
The preferreds convert into 1.24 million common shares and pay dividends at 6%.
Completion is subject to approval by stockholders.
The Bailey Co., LLLP, a "significant" investor in the company since 1996, has agreed to buy 180,000 shares of the preferred stock.
The Golden, Colo.-based restaurant operator will use proceeds to fund its current plans to develop additional company-owned Good Times Burgers & Frozen Custard restaurants in Colorado and to refurbish existing restaurants.
| Issuer: | Good Times Restaurants Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $2.95 million plus services valued at $150,000
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| Shares: | 1.24 million
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| Price: | $2.50
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| Dividend: | 6%
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| Convertible into: | 1.24 million shares
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| Conversion ratio: | 1
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| Conversion price: | $3.10
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| Warrants: | No
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| Stock price: | $2.93 at Dec. 30 close
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