Prospectus Summary
The following summary information is qualified in its
entirety by the detailed information and financial statements appearing elsewhere in this Prospectus.
The Company: Hotch
Pot, Inc. operates a chain of 140 fast-food outlets in the United States
offering unusual combinations of
dishes. The Offering: Common
Stock offered by the Company 500,000 shares; Common Stock offered by the Selling Stockholders 300,000
shares; Common Stock to be outstanding after this offering 3,500,000 shares. Use of Proceeds: For the construction of
new restaurants and to provide working capital.
THE
COMPANY
Hotch Pot, Inc. operates a chain of 140 fast-food outlets in Illinois,
Pennsylvania, and Ohio. These restaurants
specialize in offering an unusual combination of foreign dishes. The
Company was organized in Delaware in 1990.
USE
OF PROCEEDS
The Company intends to use the net proceeds from the sale of 500,000
shares of Common Stock offered hereby,
estimated at approximately $5 million, to open new outlets in midwest
states and to provide additional working
capital. It has no immediate plans to use any of the net proceeds of the
offering for any other specific investment.
DIVIDEND
POLICY
The company has not paid cash dividends on its Common Stock and does not
anticipate that dividends will be paid on the Common Stock in the foreseeable
future.
CERTAIN
FACTORS
Investment in the Common Stock involves a high degree of risk. The
following factors should be carefully considered in evaluating the Company:
Substantial Capital Needs. The Company will require additional financing to continue its expansion
policy. The Company believes that its
relations with its lenders are good, but there can be no assurance that
additional financing will be available
in the future.
Competition. The
Company is in competition with a number of restaurant chains supplying fast
food. Many of these companies are
substantially larger and better capitalizedthan the Company.
CAPITALIZATION
The following table sets forth the capitalization of the Company as of
December 31, 1999, and as adjusted to reflect
the sale of 500,000 shares of Common Stock by the Company.
SELECTED
FINANCIAL DATA
[The Prospectus typically includes a summary income
statement and balance sheet.]
MANAGEMENT`S
ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Revenue growth for the year ended December 31,
1999, resulted from the opening of ten new restaurants in the Company`s existing geographic area and from
sales of a new range of desserts, notably crepe suzette with custard. Sales per customer increased by 20% and this
contributed to the improvement in margins. During the year the Company borrowed $600,000 from its banks at
an interest rate of 2% above the prime rate.
BUSINESS
Hotch Pot, Inc. operates a chain of 140
fast-food outlets in Illinois, Pennsylvania, and Ohio. These restaurants specialize in offering an unusual
combination of foreign dishes. 50% of company`s revenues derived from sales of
two dishes, sushi and sauerkraut and
curry bolognese. All dishes are prepared in three regional centers and then
frozen and distributed to the individual restaurants.
MANAGEMENT
The following table sets forth information
regarding the Company`s directors, executive officers, and key employees:
EXECUTIVE
COMPENSATION
The following table sets forth the cash
compensation paid for services rendered for the year 1999 by the executive
officers:
CERTAIN
TRANSACTIONS
At various times between 1990 and 1999 First
Cookham Venture Partners invested a total of $1.5 million in the Company. In connection with this investment,
First Cookham Venture Partners was granted certain rights to registration under the Securities Act of
1933, including the right to have their shares of Common Stock registered
at the Company`s expense with the
Securities and Exchange Commission.
PRINCIPAL
AND SELLING STOCKHOLDERS
The following table sets forth certain
information regarding the beneficial ownership of the Company`s voting Common Stock as of the date of this
prospectus by (i) each person known by the Company to be the beneficial
owner of more than 5% of its voting
Common Stock, and (ii) each director of the Company who beneficially owns
voting Common Stock. Unless otherwise indicated, each owner has sole voting and
dispositive power over his shares.
DESCRIPTION
OF CAPITAL STOCK
The Company`s authorized capital stock consists
of 10,000,000 shares of voting Common Stock.
As of the date of this Prospectus, there are 4 holders of record of the Common Stock. Under
the terms of one of the Company`s loan
agreements, the Company may not pay cash dividends on Common Stock
except from net profits without the written consent of the lender.
UNDERWRITING
Subject to the terms and conditions set forth in the Underwriting
Agreement, the Underwriter, Silverman Pinch Inc., has agreed to purchase from the Company and the Selling
Stockholders 800,000 shares of Common Stock.
There is no public market for the Common Stock. The price to the public
for the Common Stock was determined by
negotiation between the Company and the Underwriter and was based on,
among other things, the Company`s
financial and operating history and condition, its prospects, and the
prospects for its industry in general, the
management of the Company, and the market prices of securities for
companies in businessessimilar to that of the Company.
LEGAL
MATTERS
The validity of the shares of Common Stock offered by the Prospectus is
being passed on for the Company by Blair,
Kohl, and Chirac and for the Underwriter by Chretien Howard.
LEGAL
PROCEEDINGS
Hotch Pot was served in January 2000 with a summons and complaint in an
action commenced by a customer who
alleges that consumption of the Company`s products caused severe nausea
and loss of feeling in both feet. The
Company believes that the complaint is without foundation.
EXPERTS
The consolidated financial statements of the Company have been so
included in reliance on the reports of Hooper
Firebrand, independent accountants, given on the authority of that firm
as experts in auditing and accounting.
Category: Capital management
|