E-Malt.com News article: USA: Granite City Food & Brewery announces $5.34 million private financing

Granite City Food & Brewery Ltd. announced on October 24 that it entered into a securities purchase agreement with accredited investors, including Solstice Investment Partners LP (Greenbrae, CA), for the sale of approximately $5.34 million of common stock and warrants, and completed the closing of such private placement.

The Company sold 1,108,844 shares of common stock at a price of $4.8165 per share, with one investor warrant for every five shares of common stock sold. The Company also issued a warrant to its placement agent for 5% of the shares sold. Each warrant has a term of five years and is exercisable at $6.50 per share, subject to certain anti-dilution adjustments. After October 21, 2007, the Company may call for the mandatory exercise of the warrants if the average closing price of the Company's common stock for any 30 consecutive trading days is greater than or equal to $10.00. Investors in the placement have rights that provide them the opportunity to participate in future financings for a period of two years. Granite City has agreed to register the common stock and the shares underlying the warrants under applicable federal and state securities laws.

"We consider Solstice Capital to be a valued-added partner and are excited to have them leading this round of financing," said Steve Wagenheim, Granite City Food & Brewery's President and Chief Executive Officer. "We plan to use the net proceeds of this financing for working capital and capital expenditures to fund expansion of Granite City's ten-store restaurant chain."

The shares and warrants sold at the closing represented approximately 11.8% of the Company's outstanding common stock before the issuance. Craig Hallum Capital Group LLC acted as the exclusive placement agent for the offering of securities.

The foregoing securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.


25 October, 2005