WASHINGTON, D.C. -- According to an Oct. 10 Securities and Exchange Commission filing, Wells Fargo & Co. (WFC) now holds a 28.9 percent stake in Dallas-based Pizza Inn Inc. (PZZI) because the chain's former CEO, Jeffery Rogers, failed to repay a loan from the company.
Rogers resigned from Pizza Inn on Aug. 22, when its board of directors concluded he could not repay $1.9 million Pizza Inn loaned him on June 2, 1997.
To secure the loan, Rogers pledged 2,908,239 common shares of Pizza Inn stock to WFC, and on Sept. 30, 2002, the financial institution claimed beneficial ownership of the shares.
According to the SEC filing, as of Sept. 13, there were 10,058,324 shares of Pizza Inn common stock outstanding.
Should WFC sell its shares, the report said Rogers "may be entitled to a portion of the proceeds ... under limited circumstances."
Since Rogers' exit, the value of Pizza Inn's stock has risen from $1.04 on Aug. 22, to $1.68 on Oct. 10.