Western Sizzlin extends exchange offer for ITEX shares to May 13; fewer than 1 million shares tendered

By Lisa Kerner

Charlotte, N.C., May 1 - Western Sizzlin Corp. once again extended its exchange offer for up to 2.7 million shares of ITEX Corp.

The offer will now close at 5 p.m. ET on May 13, rather than on April 30.

As of the close of business on April 30, some 900,233 shares of ITEX common stock had been tendered in the offer, according to a Western Sizzlin news release.

Western Sizzlin previously extended its exchange offer to April 30 from March 26.

Some 905,309 shares of ITEX common stock had been tendered at the close of business on March 26, a prior Western Sizzlin news release stated.

The ITEX board of directors recommended that shareholders reject the offer of 0.06623 of a share of Western Sizzlin common stock for each share of ITEX, it was previously reported.

According to ITEX, the value of the consideration being offered is uncertain, illiquid and fully dependent on the future value of Western Sizzlin common stock, which dropped 12% between Dec. 27 and the end of March.

ITEX, in a March 25 news release, called Western Sizzlin's unsolicited offer "wholly inadequate," despite the removal of offer conditions.

On March 13, Western Sizzlin dropped the requirement that 60% of ITEX's shares be validly tendered in the exchange offer.

Based in Bellevue, Wash., ITEX operates a marketplace for cashless business transactions for member businesses in North America.

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