Chicago Pizza to Sell $2 Million in Shares

Chicago Pizza & Brewery Inc. said Friday that it agreed to sell 800,000 shares of common stock to affiliates of its largest shareholder, BJ Chicago LLC, for about $2 million. The Huntington Beach company, which operates casual restaurants, was required to raise additional equity as part of an agreement with Union Bank to receive $8 million in debt financing. The shares are being sold at $2.50 each to William H. Tilley and Jacmar Cos. by April 30. In addition, the company agreed to sell up to 3.2 million shares more at the same price to BJ Chicago by Aug. 15. Chicago Pizza said it wasn’t able to secure alternative debt financing without the infusion of additional equity. The financing consists of two loans--a $4 million term loan used to retire the company’s current debt to WM Business Bank, and another $4 million to fund expansion. Chicago Pizza’s stock closed Friday at $2.75, off 13 cents a share, in Nasdaq trading.