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Luby’s Issues Second Quarter Fiscal 2022 Report 

HOUSTON, TX – April 21, 2022 - Luby’s, Inc. (NYSE: LUB) (“Luby’s”) which is in the process of monetizing its assets for the benefit of its shareholders, announced today its financial results for the second quarter ended March 9, 2022.

Financial Results

Liquidation Basis of Accounting

As a result of Luby’s shareholder approval of its plan of liquidation on November 17, 2020, effective November 19, 2020, in accordance with Generally Accepted Accounting Principles (“GAAP”), the Company began reporting its financial results on the liquidation basis of accounting.  The liquidation basis of accounting requires, among other things, that management estimates net sales proceeds on an undiscounted basis, as well as include in the Company’s assets and liabilities the undiscounted estimate of future revenues and expenses through the end of the liquidation.  Based on the liquidation basis of accounting, the net assets in liquidation at March 9, 2022 are currently estimated to result in future aggregate liquidating distributions of $2.89 per common share based on the number of common shares outstanding on that date.  This represents no change from our last reported estimate at the end of the first quarter of fiscal 2022.  After giving effect to the $0.50 per common share distribution paid on March 28, 2022, the net assets in liquidation are currently estimated to result in remaining future aggregate liquidating distributions of $2.39 per common share.  This estimate of future liquidating distributions includes projections of sales proceeds and net operating revenues to be received and costs and expenses to be incurred, including costs to dispose of the Company’s assets to complete the plan of liquidation, including costs of any transfers to a liquidating entity at that time.  

There is inherent uncertainty with these projections, and accordingly, these projections could change materially based on a number of factors both within and outside of Luby’s control. There can be no assurance that these estimated values will be realized.  Such amounts should not be taken as an indication of the timing or the amount of future distributions or our actual dissolution.

The current estimate of net assets in liquidation at March 9, 2022 has been estimated based on undiscounted cash flow projections and assumes a final liquidation of the Company on June 30, 2022, with any remaining assets and liabilities being transferred to a liquidating entity at that time, even though the actual timing of the sale of the Company’s remaining operating locations and real estate holdings cannot be determined with any specificity at this time.  As such, the final liquidation of the Company and it’s monetization of it’s remaining assets while in a liquidating entity is subject to future events and uncertainties.  Liabilities are carried at their contractual amounts due as adjusted for the impact of timing of the planned liquidation.  It is not possible to predict with certainty the timing or aggregate amount which may ultimately be distributed to our shareholders and no assurance can be given that the distributions will equal or exceed the estimate presented in this release.
1

Asset Sales

During the second quarter of fiscal year 2022, the Company sold 4 real estate assets for total gross proceeds of approximately $10.3 million.  

Subsequent to the second quarter of fiscal year 2022, the Company sold the Culinary Contract Services business.    

The Company currently owns 18 real estate assets, of which 6 are operating locations and 12 are vacant. The Company currently has 10 Luby’s Cafeterias and two Fuddruckers (including 1 combo unit) which are managed by third parties as the Company pursues disposition options for owned properties and leases.  

Distributions
On March 28, 2022, the Company paid a cash liquidating distribution of $15.5 million, or $0.50 per common share, to stockholders of record as of March 21, 2022.

About Luby’s

Luby’s, Inc. (NYSE: LUB) previously announced its plan of liquidation and dissolution, which was approved by its shareholders on November 17, 2020. Luby’s has sold both its restaurant brands, Luby’s Cafeterias and Fuddruckers, as well as its Culinary Contract Services business segment.  Luby’s is actively seeking buyers for its remaining real estate assets.

Forward Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical fact, are “forward-looking statements” for purposes of these provisions, including the statements regarding sales of assets, effects of the Company’s Liquidation and Dissolution Plan (the “Plan”), expected value or proceeds attributable to the sale of assets, and expected proceeds to be distributed to stockholders or the timing thereof. Luby’s cautions readers that various factors could cause its actual financial and operational results to differ materially from those indicated by forward-looking statements made from time-to-time in news releases, reports, proxy statements, registration statements, and other written communications, as well as oral statements made from time to time by representatives of Luby’s. The following factors, as well as any other cautionary language included in this press release, provide examples of risks, uncertainties and events that may cause Luby’s actual results to differ materially from the expectations Luby’s describes in such forward-looking statements: general business and economic conditions; the effects of the COVID-19 pandemic; our operating initiatives; fluctuations in the costs of commodities, including beef, poultry, seafood, dairy, cheese and produce; increases in utility costs, including the costs of natural gas and other energy supplies; changes in governmental regulations, including changes in minimum wages; the effects of inflation; unfavorable publicity relating to operations, including publicity concerning food quality, illness or other health concerns or labor relations; and other risks and uncertainties disclosed in Luby’s annual reports on Form 10- K and quarterly reports on Form 10-Q, including information regarding the risks, uncertainties and other factors relating to the Plan, the expected net proceeds from the sale of assets, and expected proceeds to be distributed to stockholders.

For additional information contact: 
John Garilli, Interim CEO
LInvestors@lubys.com

2Exhibit 10.1 

 

Agreement of Investment

 

Whereas AnPac Bio-Medical
Science (Shanghai) Co., Ltd. (Party A, hereinafter referred to as “Anpac Shanghai”, the registered address: No., 860, Fuping
Road, Putuo District, Shanghai) is a subsidiary of the parent company called Anpac Bio-Medical Science Co., Ltd. (stock code: ANPC, hereinafter
referred to as “ANPC parent company”), with devotion in the development and industrialization of the bio-medical technology.
The Cancer Differentiation Analysis technology (abbreviated as CDA), an early tumor detection technology originally invented by Party
A and validated to be cost-effective by the preclinical retrospective control study on hundreds of thousands of cases in combination
with cancer detection on health people, is a bit superior to the current traditional technology in terms of the scope, sensitivity and
specificity of cancer detection. By stepping up business expansion for its cancer detection products on the market of health management
and detection in both China and USA, AnPac is instilling more energy in spurring research, development and marketing of new products
in two countries mentioned above.

 

Whereas Hunan Weitou
Technology Co., Ltd. (Party B, an investor with abundance of resources and experience in an array of fields, including full understandings
of investment risks on the American stock market) is determined to allocate investment into Party A for the purpose of the strategic
investment partnership with AnPac after both Party A’s state-of-the-art technology and the trend of development are recognized
by Party B.

 

Whereas Anpac Bio-Medical
Science Co., Ltd. (“the guarantor”) is Party A’s NASDAQ-listed parent company based in the foreign country.

 

Now therefore,
Party A and Party B have agreed upon as follows through the amicable negotiation:

 

1. Party B will
allot the private investment at US$ 3000000.00 (USD three million) to ANPC parent company which will distribute seven million two hundred
and fifty thousand shares (7.25 million shares) of its stocks to Party B as the consideration.

 

2. Party B
will remit the amount of private investment at US$ 3000000.00 (USD three million) to the bank account of ANPC parent company after
Party A replaces its CEO/Chairman of the BOD and one director with the counterparts from ANPC parent company as requested by Party
B. Upon receiving of all investment amounts, ANPC parent company will provide assistance to Party B in seasoned equity
offering of seven million two hundred and fifty thousand shares (7.25 million shares) of its stocks.

 

     

     

    

 

3. Both Party A
and Party B agree that Party B will provide ANPC parent company with the fund of US$ 3000000.00 (USD three million) every six months
within thirty months from the receiving date of the first investment amount (“start date”), no later than the first month
in the interval of six months from the start date. Where private investment is adopted for financing, the private equity price shall
be calculated at 90% of the closing price on the date that the private investment agreement is signed. Other manners of investment shall
be determined by the market situation or through the negotiation between Party A and Party B.

 

4. The funds that
are financed or invested by Party B may be financed or invested by way of private placement, F1, F3 or purchase of Party A’s products.

 

5. Party A makes
the commitment that it, prior to the effective date of the contract, has obtained the consent of the approval authority as specified
in the Memorandum of Association of the company.

 

6. Party B will
appoint persons as the chairman of the BOD\CEO and two directors at ANPC parent company (BVI company). Party B, as well as board members
appointed by Party B at ANPC parent company (BVI company), may not engage in business operation and management of the listed company.
In addition to persons mentioned above, Chris Chang Yu, Party A’s former chairman of the BOD, will continue to take charge of all
affairs relating to business operation and management (except capital market) of the listed company; other senior executives than the
CEO\directors at ANPC parent company (BVI company) will be appointed and dismissed by the former chairman of the BOD who will assume
responsibilities for the daily business operation and management of the company, while current managerial teams continue to address affairs
pertaining business operation and management of the listed company including the branch, subsidiary, joint venture and company in USA.

 

7. The new
board of directors will give respect and support to all regulations and rules made by the current company, endorsing all signed
agreements and reorganization, merger and/or acquisition under way (subject to previous public notification). The former chairman of
the BOD of the company will take charge of ESOP implementation for the management and employees. The year 2022 and 2023 will witness
1.7 million shares in ESOP pool of the management and teams. In the term of the cooperation relationship with Party B, the stocks in
the stock pool are available for transfer in the pool, but may not be sold on the secondary market. In the event of failure to do
so, Party B may discontinue the performance of the Agreement, and request Party A for returning Party B’s investment with
payment of liquidated damages at 30% thereof.

 

     

     

    

 

8. The refunds,
liquidated damages and penalties made by Party A in any manner shall be limited to the direct investment (private placement, or purchase
of Party A’s products) that is made by Party B, with no relation to financing amounts that involve Party B in any manner.

 

9. Ruoou Ying is
appointed as the contact person for Party A’s fulfillment of the Agreement. The designated mailing address is: No. 860, Fuping
Road, Shanghai. The designated contact phone number is: 18217058921.

 

10. Whether orally
or in writing, any notification or correspondence sent by Party B according to the contact information designated by Party A shall take
legal effect on the date of delivery. Where Party A desires to change the contact information, it shall send the written notification
to Party B for approval in advance.

 

11. Given that
juristic service like judicial service is based on the receiving address confirmed by Party A in the Agreement, the designated contact
address and phone number as confirmed in the Agreement shall also be used as the confirmed address for Party A’s litigation.

 

12. Both Party
A and Party B shall rigidly keep the context of the Agreement as confidential information which may not be released or presented to a
third party other than contractual parties, except when it is to be disclosed in accordance with administrative regulations and judicial
requirements regarding securities trading.

 

13. Any trading
and investment referred to in the Agreement have been approved by the board of directors of Party A through all required processed specified
in the Memorandum of Association of the company. Party A makes the commitment and warranty that in the event of the contract invalidation
caused by Party A’s failure in performance of processes, it will take all liabilities for indemnification, unconditionally refund
Party B’s investment for this contract, and pay liquidated damages at 10% thereof. ANPC parent company assumes the responsibility
for joint guarantee in connection with responsibilities, indemnification obligations, and appropriate breach liabilities that shall be
taken by Party A under the Agreement. Party A’s warranty shall be valid for two years from the date on which Party A shall perform
obligations.

 

     

     

    

 

14. Those matters
that are unmentioned in the Agreement could be clearly specified in a written supplementary agreement entered into by and between the
two parties through the negotiation. Where the negotiation fails, both parties agree to file a lawsuit to the people’s court with
the jurisdiction in the locality where Party B is sited.

 

15. The Agreement
is in quadruplicate, each two of which are respectively held by Party A and Party B with equal legal effects.

 

(REMAINDER OF THIS
PAGE INTENTIONALLY LEFT BLANK.)

 

Signature Page:

 

     

     

    

 

For

Party A:

Date: April 4,
2022

 

For

Party B:

Date: April 4,
2022

 

For

Guarantor:

Date: April 4,
2022

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