In early 2016, we entered into a letter of intent with a UK investment bank for an up to £10 million bond offering in the United Kingdom. The bond offering proceeds would be used to refinance certain of our existing higher interest rate notes payable and convertible debts, as well as to provide additional working capital for the opening of new restaurant locations and for general corporate purposes. The bonds are expected to be listed on the ISDX exchange in London, bear annual interest at 7.5%, with interest payments due semi-annually and principal due as a balloon payment in March 2021. We are nearing completion of the documentation and investor marketing process and have received strong indications of interest and investor commitments. We expect the bond transaction to close during the second calendar quarter of 2016. Until the transaction is fully completed, however, we cannot provide assurance as to the certainty of completion or the precise amounts, if any, that will be received by the Company.

Also in early 2016, we entered into a letter of intent with a US investment bank for up to $10 million in additional investor capital under the US Government’s EB-5 program to be used specifically for the opening of new restaurants and the creation of new jobs in certain qualified geographic regions. We are currently preparing the required offering documents, conducting job studies, site qualification analyses, and performing other diligence and administrative activities required to implement the program. We have received approval for several potential sites and are actively engaged in marketing the program to potential investors. We expect to complete our first EB5 funding transaction in mid 2016. Until all diligence procedures are fully complete and we receive binding investor commitments, however, we cannot provide any assurance as to the certainty of completion or the precise amounts, if any, that will be received by the Company.

Also in early 2016, we entered into a letter of intent directly with a US investor to fund the opening of up to 10 Little Big Burger restaurants in the Seattle area. We are actively pursuing sites and anticipate opening our first store under that arrangement by the end of 2016.