By Jennifer Chiou
New York, Sept. 5 - Grill Concepts, Inc. arranged a $5 million private placement with Charles N. Mathewson, comprising 5,000 series C convertible preferred shares and warrants to purchase up to 600,000 common shares, according to an 8-K filing with the Securities and Exchange Commission.
The preferreds have cumulative dividends at the rate of 7.5% per year, payable quarterly.
Each preferred is convertible into 250 common shares, or an aggregate of 1.25 million shares, representing a conversion price of $4.00 per share.
The preferreds may be called on or after the earlier of Aug. 31, 2013 or an uncured default in the payment of dividends.
The warrants allow the investor to purchase up to 600,000 common shares at any time prior to Sept. 2, 2015 at an exercise price equal to $4.00 per share.
Grill Concepts, based in Woodland Hills, Calif., operates 26 restaurants in California, Texas, Illinois, Oregon, Tennessee, Washington, D.C., and Washington state.
| Issuer: | Grill Concepts, Inc.
|
| Issue: | Series C convertible preferred shares and warrants
|
| Amount: | $5 million
|
| Preferreds: | 5,000
|
| Dividend: | 7.5%
|
| Conversion price: | $4.00
|
| Conversion rate: | Into 250 shares
|
| Call: | Beginning Aug. 31, 2013 or earlier if uncured default on dividends
|
| Warrants: | For up to 600,000 common shares
|
| Warrant expiration: | Sept. 2, 2015
|
| Warrant strike price: | $4.00
|
| Investor: | Charles N. Mathewson
|
| Settlement date: | Sept. 2
|
| Stock symbol: | Nasdaq: GRIL
|
| Stock price: | $2.17 at close Sept. 5
|
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