BurgerFuel to List on NZAX

Media Release 26 July 2007

BurgerFuel to List on NZAX

BurgerFuel Worldwide (BFW) has announced that it will list on the NZAX on Friday 27th July.

Chairman Peter Brook said that the company has raised $8 million.

Total applications of $5.25 million have been received from 2380 shareholders and the balance of $2.75 million from Founders Chris Mason and Josef Roberts, who also purchased shares from the public pool.

Mr Brook said that although it was the minimum amount of equity sought, the company had flexibility as to its capital requirements.

It would use the new capital to secure prime locations and undertake preliminary fit-out work. It would be able to recycle that capital as it on-sold these stores to franchisees who would pay 100% of the costs associated with their store. Franchisees also pay up-front and on-going royalty fees to BFW.

In Australia where BurgerFuel already has one franchised store, the company would use the same franchise model as NZ to expand.

It would, however, own and operate its proposed store in Sydney’s Kings Cross, which was due to start construction shortly. That store would be beneficial as a training facility and would also provide additional revenue to the company. It is located directly under the iconic Coke sign, at the entry to Kings Cross.

Mr Brook said that the IPO process had spurred interest in the brand both nationally and internationally and that BFW would also look to roll out stores in other countries with local partners, thereby reducing the requirement for capital investment.

BurgerFuel opened in Queen Street two weeks ago and so far that operation had the highest store turnover in the system. It’s due to open its second Tauranga store and a Napier store shortly, bringing total store numbers to 24.

ENDS

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