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

Granite City Food & Brewery Completes $9.0 Million Preferred Stock Transaction With Concept Development Partners And Obtains Credit Facilities For $10.0 Million

Granite City Food & Brewery Ltd. (NASDAQ: GCFB) today announced that it has completed the previously announced transaction with Concept Development Partners LLC (“CDP”). The Company issued $9.0 million of newly issued convertible preferred stock to CDP, entered into a $10.0 million credit agreement with the Structured Finance Group of Fifth Third Bank providing for senior credit facilities, repurchased 3 million shares of common stock from DHW Leasing, L.L.C. (“DHW”) for approximately $7.1 million, and purchased real property in Troy, Michigan from DHW for approximately $2.6 million.

The Company sold 3 million shares of Series A Convertible Preferred Stock to CDP, each share of which is convertible into two shares of Granite City common stock, equivalent to a conversion price of $1.50 per share. The preferred stock carries a dividend rate of 9% per year through December 31, 2013, which will be paid half in cash and half in the form of newly issued common stock. CDP has become Granite City’s largest shareholder as a result of these transactions.

The preferred stock issuance and the common stock repurchase were completed pursuant to the previously announced stock purchase agreement with CDP and stock repurchase agreement with DHW, both of which received approval from Granite City’s shareholders earlier today. The other transactions were conditions to closing the preferred stock issuance. Closing of these transactions resulted in a change in control of the Company, including changes at the board and senior management levels.

Granite City’s President and Founder Steven J. Wagenheim said, “We are very pleased to have completed these transactions. We expect to deploy these new funds to generate additional revenue through store enhancements and new store growth within our existing geographic footprint. We are analyzing potential new restaurant sites and believe that this transaction will be the catalyst for a new and exciting growth period for Granite City.”

1 of 7

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
TSLA $234.19 -3.10%
YHOO $35.99 -1.50%
AAPL $94.28 0.68%
FB $118.04 -0.45%
GOOG $695.36 -0.41%


Chart of I:DJI
DOW 17,693.14 -198.02 -1.11%
S&P 500 2,058.37 -23.06 -1.11%
NASDAQ 4,758.8160 -58.7780 -1.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs