Prime Restaurants, Inc. Addresses Shareholders' Questions & Comments Regarding the Upcoming 3 for 1 Stock Dividend and Other Issues
Prime Restaurants, Inc. (PINKSHEETS: PRSU), today will address certain shareholder questions and comments regarding its recently announced 3 for 1 stock dividend along with other company issues.
Regarding the stock dividend this is a dividend and not a forward split applicable and payable only to common shareholders of record on August 15, 2007 and payable in unrestricted free trading common shares on August 29, 2007. This dividend will be paid only to the public shareholders of record and will not be paid to any holders of restricted shares, including management.
The company has received inquiries regarding the percentage of ownership in its restaurant and as to the principles of the company and the possibility of an increase in the company's authorized shares.
1) Prime Restaurants, Inc. (PRSU) owns 100% of The Sanibel Restaurant Group, Inc. this corporation owns and operates the Sanibel - Palms Steakhouse (www.thesanibelpalmssteakhouse.com) in Ft. Myers, Florida. As previously announced it was purchased for $1,800,000 and generates between $1,750,000 to $2,100,000 plus per year in revenues and has been in the same location and in business for the last 10 years.
2) Regarding the ownership and management of the company, the current President & CEO and majority shareholder is Mr. Cris Galo and he holds 24,858,463 of restricted shares, with a restriction legend of 2 years. Regarding Mr. Edward Hayter he neither owns or controls any stock in the company and has no position in the management of the company.
3) Regarding the share structure of the company, the company has no plans of increasing the authorized shares except for the necessary required shares to pay the shareholders dividends and nothing more beyond that.
"It is the intention of management to build a first class restaurant holding company; the company does not intend to increase the outstanding shares anymore than it has to (per the dividend payments). We will use debt financing for any pending acquisitions as it is the intent of the company to maximize its share price. I would also request that the shareholders call the phone number listed below for any questions regarding the company as opposed to calling the employees at the restaurant as this will prevent misinformation and allow the personal to do their jobs. Thank you," stated Cris Galo President.
