Eden Prairie, MN - Woodroast Systems, Inc. announced that it has obtained a $2,000,000 Secured Demand Revolving Credit Facility with a major shareholder.
Amounts loaned to the Company under the facility will bear interest at the rate of 10% per annum. As part of the transaction, the Company has issued to the lender 200,000 warrants which may be exercised at any time up to and including April 30, 1999. The warrants are exercisable for Common Stock at $.01 per share. The Company will also issue the lender 20,000 warrants exercisable for Common Stock at $.01 per share for each $100,000 of borrowings under the facility. A total of $775,000 has been advanced to the Company under this facility.
The Company will use the proceeds available under the facility for payment of current obligations, trade payables, working capital and expansion of the Shelly's Back Room concept.
Woodroast Systems, Inc. is an Eden Prairie, MN. based hospitality development company that currently operates two (2) Shelly's Woodroast restaurants and is expanding its Shelly's Back Room, The American Tavern concept. A downtown Washington, DC Shelly's Back Room opened in June of 1997 and in January of 1998, a Shelly's Back Room opened in the Gold Coast Area of Chicago, IL
The Shelly's Woodroast concept includes a Northwoods lodge theme and “Original Woodroast Cooking,” a signature style of cuisine featuring slow- roasted meat, fish and fowl prepared in patented, computer-controlled wood- burning ovens. Shelly's Back Room features food and beverage service and has accommodations for cigar smokers, club seating, retail cigar sales, and a state-of-the-art air purification system called “kleen-aire.”
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
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