Wise Investments

[Scrooge McDuck]

HTBI,...news....more about....

I don't usually look at Pinksheet stocks, but I got into this news announcement before I realized it was in the Pinks.
All in all, it might be worth keeping on the edge of your radar and watching price movement.
(more after the PR)

December 8, 2003 11:11:00 AM
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Hot Brands, Inc., a Nevada corporation (OTC: HTBI), (www.hotbrands.biz), announced that it has signed a letter of intent with Paragon Steakhouse Partners, Inc. as debtor-in-possession to acquire certain assets of 8 Paragon Steakhouse locations, including leasehold interests, liquor licenses, all improvements, including FF&E in the restaurants, which are located in Michigan, Indiana and Ohio. Hot Brands, Inc. will purchase 8 leasehold interests out of bankruptcy court in a bid of $565,000, all cash deal, and will operate the Paragon Steakhouse units under the existing Paragon name for a limited time. Consummation of the acquisition will occur only after execution of a purchase agreement, Bankruptcy court acceptance, and approval of the Hot Brands bid.

Hot Brands Chairman and CEO William E. Curtis stated, 'At current revenue levels, these high-quality Steakhouse units will add approximately $11 million in annual revenue to Hot Brands'bottom line. The Hot Brands management team has a long experience with turnaround projects, so we know we can substantially improve the revenue stream of these properties and bring them to profitability through the injection of new capital, by bringing in fresh management and improving overhead controls. These established units are prime destination restaurants, and are synergistic additions to our acquisition and management concept.'

More Information about Paragon Steakhouses

The Paragon Steakhouses specialize in complete steak and prime rib meals, and also offer fresh fish and other lunch and dinner dishes. The average dinner check is approximately $26, including alcoholic beverages. Hot Brands management believes that Paragon's emphasis on quality service and the limited menu of its restaurants, with its concentration on high quality USDA choice-graded steaks and prime rib, distinguishes the Steakhouse restaurants from competitors. The Paragon Steakhouses average approximately $1.8 mil. each in annual revenues.

More Information about Hot Brands

Hot Brands, Inc. operates 43 Hot 'N Now fast food restaurants in Michigan, Wisconsin and Indiana, of which 23 are company owned and 21 are franchised. System-wide 2002 gross sales for the units were approximately $25 million annually. The rapidly growing Hot 'N Now Business currently has over 450 employees, all of which either work for the corporate office or at the operations of the corporate owned locations. In addition the franchise locations employ over 300 additional personnel. Each location has approximately 15 employees, including three Managers-in-training and one salaried General Manager.

Hot Brands is launching an aggressive effort to acquire other restaurant assets that are synergistic with the Hot 'N Now Business. Any such acquisition may be structured as a merger, stock exchange or cash purchase. Hot Brands will favor companies with strong operating revenues that lend themselves to the establishment of a franchise program or similar means of rapid establishment of a distribution network. Hot Brands management have substantial experience in the turnaround of distressed restaurant and food properties and will be looking for sound assets that can be bought cheaply and quickly overhauled to profitability.

A little over two months ago, HTBI acquired a Nevada Corporate shell trading on the Pinks and went public for the first time.
Within two weeks the PPS ran from .005 to .829.
Since then it has been dropping like a rock and is currently at .185

The Nevada Charter is in jeopardy because it's in default.(I suspect it was in defautl when then acquired it)
This can be fixed by paying something like a $65 annual fee.

Because of being in the Pinks there is no financial data avaliable, but this cash offer for the assets of Paragon, (instead of shares), combined with the volatility of the PPS, inplies a lot.

Actual acceptance of the cash offer by the Bankruptcy Court may will cause this to bottom and bounce.

In short; This company is making money and expanding. The accquisition of a Pinksheet shell as opposed to a listed shell may not have been their best decision, but there it is.....and,
as a successful corporation which operates in several States, we could well see some corrections in the corporate direction.