Industry News | February 24, 2003

Briazz President Resigns; Financing Deal in the Works

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In a form 8-K filing with the SEC on Friday, Seattle-based Briazz, Inc. announced the pending resignation of its president and chief operating officer.

According to the single line statement, C. William Vivian “has resigned to pursue other opportunities.” No replacement or plan for a replacement was mentioned. His resignation is effective February 28.

On another note, a press release issued Friday announced the signing of a letter of intent for $5.9 million in financing with DB Advisors, LLC, and affiliate of Deutsche Bank, “and other investors.” The deal includes selling senior secured non-convertible notes and warrants to purchase common shares.

If completed, the deal will give Briazz some $3.9 million in cash proceeds and convert approximately $2.0 million in securities previously issued or anticipated to be issued to Flying Food Group. Flying Food produces food for the Chicago and Los Angeles Briazz markets.

For providing the financing, DB Advisors will receive warrants to purchase 90% of Briazz common shares and appointment authority for four of the five company director seats.