BFW Strategic review update

BURGER FUEL WORLDWIDE LIMITED STRATEGIC REVIEW UPDATE Burger Fuel Worldwide Limited (BFW) announced in the interim results presented on 11th December 2018, that due to the loss of Franchise Brands as its international partner, the reality of global expansion and development has become an expensive and risky proposition. Accordingly, the Company is now focusing resources on expansion within New Zealand, where it has an intimate knowledge of the market and the ability to better contain costs. The current number of BurgerFuel(R) outlets in New Zealand stands at 56 with a further 23 overseas. In addition to the on-going development of BurgerFuel(R) within New Zealand, the Company's strategic priority has been the systemisation of the Winner Winner(R) brand in preparation for further domestic expansion, as well as the development and launch of an additional new brand - Shake Out(R) - which is a faster, more contemporary quick service restaurant (QSR) burger concept, developed in-house. This new brand is designed to complement the existing BurgerFuel(R) proposition and footprint. Winner Winner(R) currently has one restaurant in Hamilton and Shake Out(R) has one restaurant in Auckland. BFW intends to roll out each new brand under a franchise model throughout New Zealand, once each has successfully passed its feasibility period. Peter Brook, BFW Chairman, comments; "The strategic domestic refocus, coupled with the proposed migration to the NZX main board from the NZAX, has resulted in the Board engaging KPMG's Corporate Finance team to undertake a strategic review. This was highlighted in our interim results announcement". KPMG have noted that with a strong balance sheet (including $4.5m in cash reserves) and no debt, coupled with the domestic refocus, raising new capital for BFW is not presently required. KPMG also noted the significant illiquidity in BFW's shares, lack of research coverage and share price volatility (even during periods where no announcements are made). Given the above, the Board is questioning the relative merits of remaining a listed entity in its current form and has expanded KPMG's mandate to further explore all strategic options for BFW. KPMG will therefore shortly begin preparation to conduct a formal process seeking expressions of interest regarding a sale, merger, joint venture, international partnership, domestic partnership or alternative proposals that may arise from the process. The Board will keep the market updated with any developments should they occur throughout the on-going strategic review process. For more information: Kate Walsh communications@burgerfuel.com www.burgerfuel.com End CA:00330640 For:BFW Type:GENERAL Time:2019-02-15 12:49:30