Coastal Foods, Inc. (OTCBB:XPIE) announced today that it has entered into a letter of intent with PJ Management, Inc. (PJM) whereby Coastal would be acquired by PJM by way of a merger of Coastal with a subsidiary of PJM. Upon completion of the merger, Coastal shareholders will own approximately 1.5 million shares out of a total 6 million shares of the newly formed PJM common stock.
“We’re excited about signing a letter of intent with PJ Management and we look forward to joining forces with a leading international company,” stated Cecil Ferguson, Chief Executive Officer and President of Coastal Foods. “Once the merger is complete in July, Coastal Foods will be a wholly owned subsidiary of PJ Management.”
Coastal Foods, Inc. founded in 1990, manufactures and markets a variety of high quality frozen and baked products for the private food service industry. Some of the products include frozen pie shells, frozen pie dough sheets, fruit cobblers, muffins, tort shells and other specialty products.
PJ Management Inc., founded in 1997, owns the development area for Papa John’s Pizza that is located in the greater Los Angeles, California area. The company presently operates 13 stores, with an additional store opening in June 2000. The development objective is to complete five stores each year through 2006 and one store in 2007 and acquire additional locations through acquisitions.
This press release contains various “forward-looking” statements, as defined in the private Securities Litigation Reform Act of 1995, that involves a number of risks, contingencies and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from current expectations. No regulatory authority has approved, disapproved or reviewed the content of this press release.