This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Good Times Restaurants Inc. Announces Closing Of $2.1m Stock Purchase Agreement

Good Times Restaurants Inc. (Nasdaq: GTIM) today announced that on December 13, 2010 it closed on a stock purchase transaction with Small Island Investments Ltd. (“SII”) for the sale of 4,200,000 shares of its common stock for an aggregate purchase price of $2.1 million following shareholder approval of the transaction. The Company also reported that it had simultaneously entered into an Amended Credit Agreement with Wells Fargo Bank on its existing term loan that modifies certain financial loan covenants and collateral commitments, but without any change to the interest rate or term of the loan. The Company had been in technical default of certain loan covenants but had never been in any payment default and is now in full compliance with the modified covenants.

Boyd Hoback, President & CEO said, “The proceeds of the equity transaction along with continued improvement in our operating results allowed us to reduce short term debt and liabilities and provides additional strength to our balance sheet and working capital position. We will continue to reinvest in our existing restaurants as we look toward future growth as liquidity returns to the capital markets for new company owned and franchised store development. In the near term we are focused on building cash flow from our existing asset base through continued sales growth and margin improvement.”

The Company’s Board of Directors approved a one for three reverse split of the Company’s common stock that was also approved by shareholders at the Special Meeting on December 13, 2010. The reverse split will be effective as of December 31, 2010. Hoback added, “The equity transaction and the reverse split allow us to maintain our listing on the Nasdaq Capital Market as we evaluate possible further long term strategic moves to improve shareholder value and liquidity.”

Mastodon Ventures Inc. provided strategic advisory services to the Company in the transaction. A fairness opinion for the SII transaction was provided to the Board of Directors by Woodville Hall Capital, LLC, of Middleburg, Virginia.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs