Yoshiharu Closes Acquisition of Three Las Vegas Restaurants
Rhea-AI Summary
Yoshiharu Global Co. (NASDAQ:YOSH), a California-based restaurant operator specializing in Japanese ramen, has completed its acquisition of three Las Vegas restaurants for $3.6 million. The purchase involved a mix of cash, promissory notes, and convertible notes, giving the seller an option to convert debt into YOSH common shares. The seller will continue as managing director of the acquired restaurants. Yoshiharu expects these restaurants to generate $6 million in annual revenue in 2024 and aims to break even in the latter half of 2024, with profitability projected for 2025.
Positive
- Acquisition of three Las Vegas restaurants for $3.6 million.
- Projected $6 million in annual revenue from acquired restaurants in 2024.
- Seller's involvement as managing director ensures continuity.
- Plan to break even in H2 2024.
- Expected profitability in 2025.
Negative
- Acquisition financed partially through convertible notes, potentially diluting YOSH shares.
- No immediate profitability; break-even point projected in late 2024.
- Reliance on seller's management to sustain success.
News Market Reaction – YOSH
On the day this news was published, YOSH declined 3.88%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BUENA PARK, CA / ACCESSWIRE / June 17, 2024 / Yoshiharu Global Co. (NASDAQ:YOSH) ("Yoshiharu" or the "Company"), a California-based restaurant operator specializing in authentic Japanese ramen, has closed the previously announced asset purchase agreement with a restaurant operator ("Seller") to acquire certain restaurant assets held by Jjanga LLC, HJH LLC and Ramen Aku LLC for an aggregate
The acquisition was financed through a combination of cash, promissory note, and a convertible note, which provides the Seller with the option to convert the debt into Class A YOSH common shares. The Seller will also serve as the managing director of each restaurant through an employment agreement.
"I am pleased to announce the successful acquisition of three renowned Las Vegas restaurants," said James Chae, Yoshiharu's President, CEO, and Chairman of the Board. "With
About Yoshiharu Global Co.
Yoshiharu is a fast-growing restaurant operator and was born out of the idea of introducing the modernized Japanese dining experience to customers all over the world. Specializing in Japanese ramen, Yoshiharu gained recognition as a leading ramen restaurant in Southern California within six months of its 2016 debut and has continued to expand its top-notch restaurant service across the West Coast, currently owning and operating 11 restaurants.
For more information, please visit www.yoshiharuramen.com.
Forward Looking Statements
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, the Company's beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our recent filings with the Securities and Exchange Commission ("SEC") which can be found on the SEC's website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the risk that we may not be able to successfully implement our growth strategy if we are unable to identify appropriate sites for restaurant locations, expand in existing and new markets, obtain favorable lease terms, attract guests to our restaurants or hire and retain personnel; that our operating results and growth strategies will be closely tied to the success of our future franchise partners and we will have limited control with respect to their operations; the risk that we may face negative publicity or damage to our reputation, which could arise from concerns regarding food safety and foodborne illness or other matters; that minimum wage increases and mandated employee benefits could cause a significant increase in our labor costs; We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Relations Contact:
Cody Cree and John Yi
Gateway Group, Inc.
949-574-3860
YOSH@gateway-grp.com
SOURCE: YOSHIHARU GLOBAL CO.
View the original press release on accesswire.com
FAQ
What did Yoshiharu acquire for $3.6 million?
How was Yoshiharu's acquisition of the Las Vegas restaurants financed?
What is the annual revenue expected from Yoshiharu's new Las Vegas restaurants in 2024?
When does Yoshiharu expect to break even from the acquisition?
What is Yoshiharu's profitability projection following the acquisition?
