SAN JUAN, Puerto Rico -- Prime Time Group Inc. has entered into a stock purchase agreement with Puerto Rico-7, a Puerto Rican company that owns and operates 14 7-Eleven stores in Puerto Rico. It also is the exclusive area licensee of 7-Eleven in all of Puerto Rico. Puerto Rico-7's employees will remain with Prime Time, and will be joined by Prime Time's current management team.
Blue Eye, Mo.-based Prime Time currently operates eight convenience stores in southeastern Missouri. Upon the successful completion of the acquisition of the 14 7-Eleven stores [image-nocss] in Puerto Rico, Prime Time Group will be required by the agreement to discontinue operating the eight c-stores in Missouri.
Johnny Ray Arnold, chairman and CEO of Prime Time Group, said, Puerto Rico-7 has opened two new stores within the last three months, and both locations have exceeded all expectations. 7-Eleven and Prime Time believe that across the island of Puerto Rico, more than 100 stores can be developed. It is our intent to fulfill that goal while maintaining the history of success, quality and customer satisfaction that are the cornerstones of 7-Eleven."
He added, "Prime Time plans to immediately implement an image enhancement program for the existing stores as well as a marketing strategy to bring further awareness of 7-Eleven to Puerto Rico. We also intend to build a central distribution center which should cut costs and increase profitability."
There are approximately 4 million people on the island, said the company, with nearly 1.7 million in the greater San Juan area, where all of the 14 7-Eleven stores are located.
Prime Time Group said it believes that 7-Eleven is highly under-represented in Puerto Rico, while at the same time experiencing increased brand recognition and customer satisfaction. It said it believes that it is strategically poised to take advantage of these factors.
Completion of the acquisition is subject to, among other factors, the completion of Prime Time Group's private financing, which is currently in progress.
Immediately following the closing, PRTH plans to complete the audit of its financial statements, for the purpose of becoming a reporting issuer under the Securities Exchange Act of 1934; and, as soon as PRTH is eligible, the company intends to file for listing on the American Stock Exchange (AMEX).