Company Says Deal Is Made, ‘Seller’ Denies It
Ven-Cap Inc. of Newport Beach said Thursday that it signed an agreement in principle to acquire a mini-market franchise company, but the deal may not be worth the paper it was written on. Or was it written?
A Ven-Cap press release Thursday announcing the prospective purchase of the franchise company prompted the announced seller to deny the report.
Ven-Cap, a one-time venture capital firm that moved to Newport Beach two months ago, announced Thursday that it had reached an “agreement in principle” to purchase 57 Quick Shop Minute Mart Stores in Oregon and Washington from Convenient Food Mart Inc., a Rosemont, Ill., company.
The announcement said the all-cash purchase consisted of 54 franchised Minute Mart stores, three stores operated by Convenient Food Mart and six locations in metropolitan Portland that are planned or under construction.
The acquisition also included the regional franchise for Washington and 21 counties in Oregon, according to the release.
“There’s no definitive agreement signed. We’ve had some conversations (but) we’re still a ways away, and nothing’s signed on paper,” said Robert Risberg, president and chief executive of Convenient Food Mart. His company owns, operates or franchises 1,350 stores in North America and the Far East.
“I’ve got a copy of the agreement with his signature. We’re not negotiating. We’ve reached an agreement and we’re on the third draft of a definitive agreement,” countered Roy Nelson, chairman of Ven-Cap.
The two parties had better have an agreement, said James Thuni of Vancouver, Wash., Ven-Cap’s former president. He said he has put together a group of investors and investment bankers who have put up or are committed to deliver $3 million to aid Ven-Cap in completing the deal. Nelson said the deal calls for another $295,000 to be paid for the regional franchise.
To complicate matters, Risberg’s company doesn’t even own the Minute Mart stores or the franchise operations. But he acknowledged that the firm does have an option to purchase the stores and operations from SNH Food Corp. in Vancouver and intends to close the sale July 28.
“We don’t know if we will sell it,” Risberg said in a telephone interview.
Nelson said Risberg signed the agreement in principle on June 14 before leaving on a trip to Japan. Risberg could not be reached for further comment on the signing.
In the last six months, Ven-Cap has announced the acquisitions of three energy firms, Energy Systems Co. of America Inc. in Santa Ana, American Energy Savings Inc. in Northridge and Energy Savings Systems Inc. in Portland.
