Deal could create opportunities for two-unit brand to expand
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The parent to the two-unit Illegal Burger concept has completed a reverse merger with Nexus Energy Services Inc., the company said Friday. The entity is now the publicly traded Illegal Restaurant Group Inc.
Nexus Energy was a mid-level provider of oil pipelines and other services as a small, over-the-counter, publicly traded company. But, in part because of the downturn in oil prices, Nexus decided to exit that business to move into the restaurant industry, said Jim Nixon, now president and CEO of Illegal Burger Restaurant Group.
The deal will allow Illegal Burger to expand beyond its home base of Denver. The company plans to launch a franchising program later this year, Nixon said.
“The reverse merger has given us the opportunity to secure some funding and help us expand the brand and bring in some great people as far as management,” he said.
With the merger, Loretta Higgins resigned as sole director of Nexus Energy, and will continue as chief financial officer and secretary of the new entity.
The company will trade on the Nasdaq Over The Counter market under the ticker symbol IBGR.
Illegal Burger reported about $2 million in revenue in 2014. Restaurants are around 1,800 square feet to 2,200 square feet, with an average check of about $13 per person for a burger, fries and nonalcoholic drink.
Founded by Nixon in 2013 in Evergreen, Colo., Illegal Burger is known for its all-natural, never frozen beef, with buns, sauces and sides — like handcrafted Cheesy Tots — made in house. Unlike most fast-casual burger chains, Illegal Burger has a full bar that sells adult milkshakes spiked with alcohol, craft beers and “moonshine.”
A third location under construction in downtown Denver is scheduled to open in mid to late July, Nixon said.
Two more locations are also scheduled to open in 2015 in the Denver area, and next year another five units are planned. Illegal Burger may move into new markets to seed for franchising, like Miami, Nixon said.
Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout
