ROANOKE, Va., Dec. 19 /PRNewswire-FirstCall/ -- Western Sizzlin Corporation (BULLETIN BOARD: WSZL) announced today the results of its rights offering that commenced on November 9, 2006 and ended December 8, 2006. The firm also reported the opening of Wood Grill Buffet, which is owned and operated through a joint venture, and the obtaining of a commitment from a new franchisee to open a Western Sizzlin prototype.
During the duration of the rights offering, purchasers exercised their rights to buy 595,925 shares of common stock at $7.00 per share through both basic and oversubscription privileges. Total proceeds to the company were approximately $4.17 million. Sardar Biglari, Chairman of Western Sizzlin, said, "The rights offering was successful, and we appreciate our investors' support. Our job is now to allocate our shareholders' capital wisely."
Wood Grill Buffet by Western Sizzlin opened its doors in Harrisonburg, Virginia on Thursday, December 14, 2006. The 12,600 square foot restaurant is a 50/50 joint venture with a franchisee who owns and operates another Wood Grill in Charlottesville, Virginia. Jim Verney, Chief Executive of Western Sizzlin, stated, "This prototype, a buffet concept, offers great sales and profit potential for prospective franchisees and is a great value proposition for customers."
A new franchisee has agreed to open a Western Sizzlin prototype in 2007. Mr. Verney commented, "This restaurant brings Western Sizzlin back to its concept roots of 1963, but in a 2007 restaurant environment. We are excited about the prospects of leveraging our brand combined with achieving attractive financial returns for our franchisees."
About Western Sizzlin Corporation
Western Sizzlin Corporation operates and franchises a total of 129 units in 19 states as of December 19, 2006 under names of WesterN SizzliN Steak & More, WesterN SizzliN Wood Grill, Great American Steak & Buffet Company, and Quincy Steakhouses.
Forward Looking Statement
Comments in this news release may include "forward-looking statements" within the meaning of the federal securities laws. These statements concerning anticipated future results are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ markedly from those projected or discussed here. Western Sizzlin Corporation cautions readers not to place undue reliance upon any such forward-looking statements, for actual results may differ materially from expectations. Further information on the types of factors that could affect the Company can be found in the Company's filings with the SEC.
