ARC Group Inc. (fka RLLY)

[HDOGTX]

Seenu G. Kasturi takes a controling interest in American Restaurant Concepts

http://www.restaurant-star.com/index/2012123-seenu-g-kasturi-takes-a-controling-interest-in-american-restaurant-concepts

News image
(News) American Restaurant Concepts, Inc. (OTCBB: ANPZ), the operator and franchisor of Dick's Wings restaurants, announced that Michael Rosenberger, the company's CEO, has entered into an agreement for the sale of 15,530,000 shares of the company's common stock to Seenu G. Kasturi, the CEO of Blue Victory Holdings, for 3.2 cents per share in an all cash deal. The 15.5 million shares being purchased by Mr. Kasturi represent approximately 45.3% of the company's outstanding common stock, giving him a controling interest in the company. The purchase price of 3.2 cents per share being paid by Kasturi effectively values American Restaurant Concepts at approximately $1.1 million. The company's common stock closed at 2.0 cents per share on August 14, 2012.

Pursuant to the terms of the agreement, Mr. Kasturi has already paid 40% of the purchase price to Mr. Rosenberger. In addition to the 3.2 cents per share purchase price, Mr. Kasturi has agreed to pay approximately $66,000 of operating expenses on behalf of American Restaurant Concepts. Rosenberger will retain beneficial ownership of 4,573,000 shares, or 13.3%, of the company's common stock after the transaction closes.

"I am very excited to have the opportunity to work with Seenu and Blue Victory Holdings," stated Mr. Rosenberger. "Seenu is a very accomplished businessman who has obtained a tremendous amount of experience working with restaurant franchises during his career. He is a team player who will contribute immediately and significantly to the growth of American Restaurant Concepts. Blue Victory is a successful franchisee of many profitable restaurants including Kentucky Fried Chickens and Taco Bells. Together, we will grow American Restaurant Concepts quickly and efficiently across the nation."