ARC GROUP, INC. (OTCMKTS:ARCK) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. |
On March 24, 2017, ARC Group, Inc. (the Company) and Blue Victory
Holdings, Inc., a Nevada corporation (Blue Victory), entered into
an amendment (the Amendment) to that certain Loan Agreement,
dated September 13, 2013, to which Blue Victory had extended a
line of credit facility to Borrower for up to $1,000,000 (the
Credit Facility). Under the terms of the Amendment, the Company
and Blue Victory agreed to reduce the maximum amount of funds
available under the Credit Facility from $1,000,000 to $50,000.
to the terms of the Amendment, the promissory note, dated
September 13, 2013, that was issued by the Company to Blue
Victory to evidence the obligation of the Company to pay the
outstanding balance of the Credit Facility, was terminated in its
entirety. The obligation of the Company to pay any future
outstanding balance of the Credit Facility has been evidenced by
a new promissory note that has been issued by the Company to Blue
Victory (the Promissory Note).
Seenu G. Kasturi owns approximately 13.8% of the Companys issued
and outstanding shares of common stock. In addition, Mr. Kasturi
serves as the Chief Executive Officer, Treasurer and Secretary,
and as the sole member of the board of directors, of Blue
Victory, and owns 90% of the equity interests in Blue Victory.
Fred D. Alexander serves as a member of the Companys board of
directors and as an executive officer of Blue Victory. Mr.
Kasturi also serves as the President, Treasurer and Secretary of,
and is the sole member of, DWG Acquisitions, LLC, a Louisiana
limited liability company (DWG Acquisitions), and Raceland QSR,
LLC, a Louisiana limited liability company (Raceland QSR), and
owns all of the equity interests in DWG Acquisitions and Raceland
QSR. DWG Acquisitions currently owns and operates six of the
Companys 22 franchised restaurants, and Raceland QSR is the
landlord for the Company-owned restaurant located at 6055
Youngerman Circle in Argyle Village in Jacksonville, Florida.
The foregoing description of the Amendment and the Promissory
Note does not purport to be complete and is qualified in its
entirety by reference to the Amendment and the Promissory Note
attached hereto as Exhibits 10.1 and 10.2, respectively, and
incorporated by reference herein.
| Item 1.02 |
Termination of a Material Definitive Agreement. |
The information set forth in Item 1.01 above is incorporated by
reference herein.
Section 9 Financial Statements and Exhibits
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| 10.1 |
First Amendment to Loan Agreement, dated March 24, 2017, by and between ARC Group, Inc. and Blue Victory Holdings, Inc. |
| 10.2 |
Promissory Note, dated March 24, 2017, issued by ARC Group, Inc. in favor of Blue Victory Holdings, Inc. |
About ARC GROUP, INC. (OTCMKTS:ARCK)
ARC Group, Inc. is an operator and franchisor of the Dick’s Wings brand of restaurants. The Company’s Dick’s Wings concept includes traditional Dick’s Wings & Grill restaurants, which are full service restaurants, and non-traditional units. It has approximately 20 franchised restaurants and over two concession stands located in the States of Florida and Georgia. The Company offers a range of menu items highlighted by its Buffalo, New York-style chicken wings spun in its sauces and seasonings. It provides customers with an experience from first bite to last call. It focuses on developing brands that offer a range of food and beverages in various markets across the Unites States. The Company markets Dicks’ Wings restaurants as family fun fooderys. Its sauces and seasonings include flavors, such as Bourbon, Cajun Ranch, Caribbean Gold and Mango Habanero. Other menu items that it offers include chicken tenders, quesadillas, specialty burgers and sandwiches, salads, wraps and flatbreads. ARC GROUP, INC. (OTCMKTS:ARCK) Recent Trading Information
ARC GROUP, INC. (OTCMKTS:ARCK) closed its last trading session 00.00 at 1.04 with 1,100 shares trading hands.