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ATLANTA, Feb. 15, 2019 (GLOBE NEWSWIRE) -- CRUZANI, Inc. (OTC PINK: CZNI), www.CRUZANI.com, a global business development company in the food service sector, announced today that it will be adjusting its subsidiary holdings to refocus on its original corporate mission - the implementation of Quick Service Restaurant operations (QSR).
Cruzani’s recently announced financing plans, and its declared intention to advance as soon as possible to the OTCQB trading tier, are consistent with this sharpened focus. The contemplated adjustments will be accomplished by unwinding the earlier acquisitions of Oventa Foods and Recipe Food Co, as these projects may require too much time and additional capital to make a net contribution to Cruzani’s bottom line profitability, soon enough. The new focus will utilize Cruzani’s agreement with Burdell partner, in which Burdell will provide a $3mm equity investment into the company. The investment will be made in multiple tranches in exchange for preferred shares in the company. Cruzani plans to use the funds to, retire debt, expand operations and acquire additional business units.
Cruzani CEO, Everett Dickson, explains: “Our earlier acquisitions held promise for accretive sales growth. However, the implementation is not materializing fast enough to keep up with our ambitious business plan, compared with alternative uses for our capital in the QSR field. Acquisition candidates that are already established, and have attractive QSR sales & profit ratios, are emerging as better suited to Cruzani’s mandate for rapid growth. We can’t ignore alternative productive candidates any longer. Early course corrections in business are often best. We’re still early enough in these initiatives to be able to unwind effectively, for the benefit of all.”
Agreements that govern Cruzani acquisitions have provisions for Cruzani to recover its investments in those initiatives. This enables Cruzani to recover its investments from those initiatives and re-deploy resources and to apply upcoming financing productively.
Mr. Dickson concludes: “Cruzani has proven that it has the capacity to act decisively. We can carry out professional acquisitions as opportunities emerge. We can also carry out effective divestiture if an acquisition is not positive enough for our shareholder interests after all. Refocusing now is positive because it improves our cost/reward equation as we deploy future financing. We’ll be announcing more specifics regarding ramped-up QSR plans as soon as we can.”
Cruzani divestiture details will be reported through the normal channels in due course.
About CRUZANI, Inc.
CRUZANI Inc, formerly US Highland, Inc., is a franchise development company that builds and acquires popular franchise concepts, and other food-related businesses, throughout the United States and International markets. Our management team selects up and coming concepts with substantial growth potential. We bring fresh innovative brands to consumers that have great potential. All of our brands are unique in nature by focusing on niche markets with untapped potential for development. CRUZANI maintains social media accounts for the purposes of SEC Fair Disclosure at www.CRUZANI.com/Cruzani-CEO-Blog , https://twitter.com/CruzaniCEO , and https://www.facebook.com/Cruzani-2216678448562308
Safe Harbor Statement
This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of US Highland, Inc and members of its management as well as the assumptions on which such statements are based.
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions.
The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
For More Information
Everett M. Dickson, CEO
Lennox Road, Suite 1500
Atlanta, GA 30309