TAMPA Fla. Shells Seafood Restaurants Inc. has been granted a one-year extension on an outstanding $1.44 million loan in exchange for $100,800 in the company’s stock, the company disclosed Wednesday.
The loan's maturity date is now May 23, 2009. The extension on repayment was granted by three lenders: Trinad Capital LP of Los Angeles and Fredrick R. Adler and Bruce Galloway IRA of New York.
The number of shares that constitutes the $100,800 fee was based on the May 20 closing price of the company's stock, which was 13 cents a share. That amounts to 775,385 shares of common stock.
Shells' stock closed at 10 cents a share on Thursday. The highest that Shell’s stock has traded over the past 52 weeks has been 33 cents per share.
The 23-unit casual seafood chain has been struggling to maintain sales. Revenues for the first quarter ended March 28 declined 20.4 percent, compared with the comparable period a year ago, while same-store sales plummeted 15.6 percent.
Shells operates in Florida.