CHARLOTTE, N.C., Aug. 10, 2006 (PRIMEZONE) -- Chanticleer Holdings, Inc. (Pink Sheets:CEEH), a Business Development Company, today announced that the Company has acted as the lead investor in a $5 million, 6% convertible promissory note to Robert Brooks, Chairman of Hooters of America (HOA). However, due to the recent and unfortunate passing of Mr. Brooks on July 15, repayment of the promissory note has become a responsibility of Hooters of America as stipulated in the terms of the agreement. This note is secured by and contains conversion options into 2% of HOA outstanding stock.
The $5 million investment was made by Chanticleer Investors, LLC, which was created on May 30, 2006 for the sole purpose of engaging in this investment opportunity. Chanticleer Holdings acted as the lead investor, providing $1,100,000 in funding, with the remainder being provided by a select group of accredited investors. The Company will act as the manager of Chanticleer Investors, LLC and will be paid, on the accredited investors' portion, one-third of the quarterly interest payments and 20% of any realized gains. Realized gains may result from either the sale of the note or the underlying shares of HOA.
Michael Pruitt, Chief Executive Officer of Chanticleer Holdings, Inc., commented, "All of us at Chanticleer would like to offer our sincerest condolences to the family and friends of Robert Brooks. Hooters of America has experienced a great and unexpected loss, however we have every confidence that the Company will continue the tremendous growth, profitability and tradition of the Hooters brand and restaurant chain established by Mr. Brooks. For this reason, we are pleased to announce our most significant investment to date and look forward to managing Chanticleer Investors, LLC's investment."
For more information on Hooters, including a tribute to Mr. Brooks, please visit www.hooters.com.
About Chanticleer Holdings, Inc.
Chanticleer Holdings is a closed-end investment company that invests in value based opportunities that are either privately held or considered small or micro cap publicly traded companies. Chanticleer's investment objective is to generate both current income and long term capital appreciation through debt and equity investments. Chanticleer Holdings, Inc. has elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act").
For more information about Chanticleer Holdings, please visit www.chanticleerholdings.com.
The Chanticleer Holdings, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2295
This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statement of historical fact (including statements containing the words "believes," "plans," "anticipate," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.