World Famous Pizza Company Ltd. (the “Company” or “World Famous”) announces the completion of the sale to Figaro’s Italian Pizza Inc. of Salem, Oregon (“Figaro’s”) of the business assets of the Company’s Nick-N-Willy’s Pizza® franchise, which was owned by the Company’s Colorado subsidiary, Nick-N-Willy’s Franchise Company, LLC.
Pursuant to a purchase and sale agreement dated January 16, 2012 (“the Agreement”), Figaro’s acquired the Nick-N-Willy’s business assets for US$600,000, of which US$350,000 of the purchase price was paid on closing (less US$55,500 paid directly by Figaro’s to certain terminated area developers) and US$250,000 is payable in two installments of US$125,000 each on February 25, 2013 and February 25,
2014 (subject to certain adjustments based on the royalties received by Figaro’s).
World Famous received shareholder approval for the transaction with Figaro’s at its Annual and Special General Meeting which was held on December 15, 2011 and the TSX Venture Exchange accepted the Company’s filings in connection with the transaction by letter dated January 17, 2012.
The Company intends to use the proceeds from the sale of the assets to pay down secured debt obligations and to initiate new business plans for the Company, which plans are presently being developed.