American Restaurant Concepts Inc announced it was able to close a credit facility worth USD 1 million from Blue Victory Holdings Inc. American Restaurant Concepts operates and franchises the highly-acclaimed Dick's Wings & Grill restaurants and Dick's Wings Express restaurants.
The credit facility would be used for general working capital purposes. The loan would be made on a revolving basis in the next five years and would carry an interest rate of 6% each year. The loans were also unsecured. American Restaurant could prepay and reborrow the loan without incurring any penalties.
At its discretion, Blue Victory could convert the loan principal and interest into shares of common stock. The previous loans made by Blue Victory to American Restaurant amount to USD 415,316 in the past 18 months had been rolled over to the new credit facility.
A consulting agreement was also made between the two firms. Under the terms of the agreement, Blue Victory would help American Restaurant in identifying and the acquisition of undervalued restaurants, management, branding advertising, and equity and debt financing, among others.
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