SCOTTSDALE, Ariz., June 8, 2009 (GLOBE NEWSWIRE) -- Kona Grill, Inc. (Nasdaq:KONA) (the "Company"), an American grill and sushi bar, announced today that as of June 5, 2009 at 5:00 p.m. Eastern Daylight Savings Time, the offering period of the Company's previously announced offering of non-transferable subscription rights to purchase up to 2,608,125 shares of common stock had closed.
Pursuant to the rights offering, each holder of record of the Company's common stock as of April 17, 2009 received one non-transferable subscription right for every 2.5 shares of common stock owned by such holder. As of the closing of the offering period, the Company had been informed that approximately 2.13 million shares of common stock, or 81.5% of the total number of shares offered pursuant to the rights offering, had been subscribed for pursuant to the exercise of basic subscription rights. The Company expects to receive gross proceeds of approximately $2.87 million from the exercise of basic subscription rights. Pending confirmation of exercise of all oversubscription rights by purchasers of the Company's promissory notes issued in March 2009, the Company expects to receive aggregate gross proceeds from the offering of approximately $3.5 million.
Mark Bartholomay, interim Chief Executive Officer of the Company, stated, "This financing positions us to meet our capital expenditure commitments and working capital requirements through 2009. We believe that the proceeds from the rights offering put us in a position of increased flexibility for future financings to fund Kona Grill."
The Company further announced that, as previously disclosed, its board of directors, in consultation with the Company's outside financial advisors and legal counsel, is continuing to evaluate, within the context of the Company's overall strategic and financial plans, the expression of interest submitted by Mill Road Capital L.P. regarding the potential acquisition of all of the Company's outstanding shares in a cash merger transaction. Upon completion of its review, the Company intends to respond appropriately to the expression of interest in the best interests of all of the Company's stockholders.
The Company further announced that the Nominating Committee of the Company's board of directors is continuing its search to identify qualified candidates for the positions of President and Chief Executive Officer and for an additional independent outside director to fill the existing vacancy on the board of directors.
About Kona Grill
Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar and is open daily for lunch and dinner. For further information, please visit the Company's website at www.konagrill.com.
Forward-Looking Statements
The statements contained in this release that are not historical facts are forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements that are not purely historical. We have attempted to identify these statements by using forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should," or comparable terms. All forward-looking statements included in this press release are based on information available to us on the date of this release and we assume no obligation to update these forward-looking statements for any reason. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company's filings with the Securities and Exchange Commission.