News

Healthy Fast Food closes secondary offering

October 21, 2010

Healthy Fast Food Inc., parent to U-SWIRL International Inc., the owner and franchisor of U-SWIRL Frozen Yogurt cafes, has announced that it has closed its secondary offering of 1.5 million units at $0.40 per unit, raising gross proceeds of $600,000. In addition, Paulson Investment Company Inc., which served as the underwriter of the offering, exercised its option to purchase an additional 225,000 units to cover over-allotments. Consequently, total gross proceeds increased to $690,000.

Each unit consists of one share of common stock and one five-year, redeemable Class C public warrant. Each warrant is exercisable to purchase one share of common stock. Each Class C public warrant will be exercisable at $0.60 at any time following the separation of the unit and will expire in five years. However, the company has the right to redeem the warrants at a redemption price of $0.05 per warrant at any time after the date on which the closing price of its common stock has equaled or exceeded $0.80 for five consecutive trading days.

"Although we did not raise a significant sum of capital in this offering, the proceeds will be put to work immediately to develop our seventh company-owned U-SWIRL cafe. We'd like to thank Paulson for their continued support and warmly welcome all new shareholders to the Healthy Fast Food family," said Hank Cartwright, chairman and CEO of Healthy Fast Food.