Need for Additional Financing Clause Samples

Need for Additional Financing. I acknowledge and agree that the Company may, in the future, need to raise additional funds to expand its concept and/or respond to business contingencies which may include the need to: fund more rapid expansion; fund additional marketing expenditures; enhance its operating infrastructure; hire additional personnel; respond to competitive pressures; or acquire complementary businesses or necessary technologies. If additional funds are raised through the issuance of equity or convertible debt securities, the percentage ownership of the Company's stockholders will be reduced, and these newly-issued securities may have rights, preferences or privileges senior to those of existing members, including those acquiring Securities in this Offering. The Company makes no assurances that additional financing will be available on terms favorable to it, or at all. If adequate funds are not available or are not available on acceptable terms, the Company's ability to fund operations, take advantage of unanticipated opportunities, develop or enhance products and services or otherwise respond to competitive pressures would be significantly limited.

Need for Additional Financing. Purchaser acknowledges and understands that the Company will need to raise additional financing, either through private or public offerings of the Company’s equity securities; provided, further, the Company may issue convertible debt securities to sources outside of this Private Placement or otherwise incur indebtedness through loans, lines of credit and other forms of indebtedness (the “Additional Indebtedness”). The issuance of additional equity securities or Additional Indebtedness may require the grant of certain rights, preferences or privileges superior to those of Purchaser; provided, however, the issuance of any Additional Indebtedness senior to or pari passu with the Notes shall require the consent of the Purchasers holding a majority of the then outstanding principal of all of the Notes then issued and outstanding. In the event the Company is required to raise additional funds, Purchaser acknowledges and understands that there is no assurance that the Company will be able to obtain the additional funds necessary on terms favorable to the Company, or at all.

Need for Additional Financing. The Purchaser understands that it is likely that the Company will need to obtain additional financing following consummation of this Agreement in order to fully execute its current business plan and objectives. Such financing could be in the form of a sale or sales of equity or debt or equipment lease financing or a combination of the foregoing. Such financing could lead to material dilution to the Company’s then existing equity holders and could provide for terms that restrict the operations of the Company. There can be no assurance that any additional financing following the consummation of this Agreement will be available to the Company on commercially reasonable terms or at all. In the event the Company is unable to obtain additional financing, it may not be able to fully execute its business plan and objectives and could be forced to curtail some or all of its operations.

Need for Additional Financing. Such Investor understands that it is likely that the Company will need to obtain additional financing following consummation of the sale of the Shares in order to fully execute its current business plan and objectives. Such financing could be in the form of a sale or sales of equity or debt or equipment lease financing or a combination of the foregoing. Such financing could lead to material dilution to the Company’s then existing equity holders and could provide for terms that restrict the operations of the Company. There can be no assurance that any additional financing following the sale of the Shares will be available to the Company on commercially reasonable terms or at all. In the event the Company is unable to obtain additional financing, it may not be able to fully execute its business plan and objectives and could be forced to curtail some or all of its operations.

Need for Additional Financing. In all likelihood, the Company will need additional funds to take advantage of any available acquisition business opportunity. Even if the Company were to obtain sufficient funds to acquire an interest in a business opportunity, the Company may not have sufficient capital to fully exploit the opportunity. The ultimate success of the Company will depend upon its ability to raise additional capital at the time of the acquisition and thereafter. When additional capital may be needed, there can be no assurance that funds will be available from any source or, if available, that they can be obtained on acceptable terms.

Need for Additional Financing. Our financial success may depend on our ability to raise significant additional capital. There can be no assurance that additional financing will be available or, if available, that it would be obtainable on acceptable terms, or if obtained, that such additional financing will not be dilutive to investors who purchase Shares pursuant to this Subscription Agreement. There can be no assurance that we will be successful in raising additional capital, or that if we do raise additional capital it will be on terms and conditions favorable to our shareholders.

Need for Additional Financing. The Corporation will use the proceeds of this offering for general working capital purposes. The Corporation believes that the anticipated proceeds from the sale of the Unit will be sufficient to sustain the Corporation's operations for the next six (6) months. However, the Corporation may require additional future financing for general working capital and other purposes. In addition, the Corporation may require additional capital to commence and/or continue research and development of other planned products. No assurance can be given that subsequent financings will be available to the Corporation, or if such financing is available, that it will be on terms favorable to the Corporation.

Need for Additional Financing. The Company anticipates that it will be able to raise sufficient capital to fund its anticipated development and operation through various sources. However, the estimated budget is based on certain assumptions, including assumptions related to the performance of the business, and there can be no assurance that unanticipated unbudgeted costs will not be incurred or that the business will not perform as expected. Furthermore, the Board of Managers has the authority to increase the budget if the Board of Managers deems it advisable to enhance the viability of the venture. Future events, including problems, delays, expenses and difficulties frequently encountered in the industry, as well as changes in economic, regulatory or competitive conditions, may lead to cost increases that could make it necessary or advisable for the Company to seek additional financing. There can be no assurance that the Company would be able to obtain any necessary additional financing on terms acceptable to the Company, if at all. Also, additional financings may result in dilution of equity stakes in the Company.

Need for Additional Financing. The expansion of Buyer's restaurant operations in 1996 and 1997 has been funded with the proceeds of the October 1995 Public Offering and the August and November 1996 sales of preferred shares, along with bank financing. Management believes that it will have access to sufficient funds to complete its planned acquisitions and restaurant openings in 1998, but there can be no assurance that additional funds will not be necessary. Future events, including the problems, delays, additional expenses and difficulties frequently encountered by similarly situated companies, as well as changes in economic, regulatory or competitive conditions, may lead to cost increases that could increase the anticipated costs of the planned acquisitions and restaurant openings. Management may also determine that it is in the best interest of Buyer to expand more rapidly than currently intended. In any case, additional financing may be required. There is no assurance that Buyer will be able to obtain such additional financing, or that such additional financing will be available on terms acceptable to Buyer and at the times required by Buyer. Failure to obtain such financing may adversely impact the growth, development or general operations of Buyer. If, on the other hand, such financing can be obtained, it will most likely result in additional leverage or dilution of existing shareholders.