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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
              ----------------------------------------------------
                                    FORM 8-K
                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1933

                                  May 27, 2005
                Date of Report (Date of earliest event reported)
              ----------------------------------------------------
                           CHANTICLEER HOLDINGS, INC.
             (Exact name of registrant as specified in its charter)

                                    Delaware
         (State or other jurisdiction of incorporation or organization)

                                   52-2102141
                      (IRS Employer Identification Number)

                          6836 Morrison Blvd, Suite 200
                         Charlotte, North Carolina 28211

               (Address of principal executive offices) (ZIP Code)

                               Ross E. Silvey, CEO
                           Chanticleer Holdings, Inc.
                          6836 Morrison Blvd, Suite 200
                               Charlotte, NC 28211
                     (Name and address of agent for service)

                                  704-366-5054
          (Telephone number, including area code of agent for service)


         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_|   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))

          -------------------------------------------------------------
                                    Copy to:
                                  James Reskin
                               Reskin & Associates
                            520 South Fourth Street,
                            Louisville, KY 40202-2577

<PAGE>

Section 8 - Other Events
Item 8.01. Other Events. Chanticleer Holdings, Inc. (the "Company"), is a
publicly traded Delaware corporation formed in October 1999 with its principal
offices and operations center in Charlotte, North Carolina. The Company has
recently filed a notification under Form N54a with the U.S. Securities and
Exchange Commission, (the "SEC") indicating its election to be regulated as a
business development company under the Investment Company Act of 1940 (the "1940
Act"). In connection with this election, the Company has adopted corporate
resolutions and intends to operate as a closed-end management investment company
as such a business development company (a "BDC"). We disclose the following
information which is a material departure from our prior business plan.

INVESTMENT STRATEGY

We have conducted limited operations to date. Under this recent election, we
have been organized to provide investors with the opportunity to participate,
with a modest amount in venture capital, in investments that are generally not
available to the public and that typically require substantially larger
financial commitments. In addition, we will provide professional management and
administration that might otherwise be unavailable to investors if they were to
engage directly in venture capital investing. We have decided to be regulated as
a business development company under the 1940 Act, and will operate as a
non-diversified company as that term is defined in Section 5(b)(2) of the 1940
Act. We will, at all times, conduct our business so as to retain our status as a
BDC. We may not change the nature of our business so as to cease to be, or
withdraw our election as, a BDC without the approval of the holders of a
majority of our outstanding voting stock as defined under the 1940 Act.

As a business development company, we are required to invest at least 70% of our
total assets in qualifying assets, which, generally, are securities of private
companies or securities of public companies whose securities are not eligible
for purchase on margin (which includes many companies with thinly traded
securities that are quoted in the pink sheets or the NASD Electronic Quotation
Service.) We must also offer to provide significant managerial assistance to
these portfolio companies. Qualifying assets may also include:

      o     cash,
      o     cash equivalents,
      o     U.S. Government securities, or
      o     high-quality debt investments maturing in one year or less from the
            date of investment.

We may invest a portion of the remaining 30% of our total assets in debt and/or
equity securities of companies that may be larger or more stabilized than target
portfolio companies.

Nature of a BDC

The 1940 Act defines a BDC as a closed-end management investment company that
provides small businesses that qualify as an eligible portfolio company with
investment capital and also significant managerial assistance. A BDC is required
under the 1940 Act to invest at least 70% of its total assets in qualifying
assets consisting of eligible portfolio companies as defined in the 1940 Act and
certain other assets including cash and cash equivalents.

An eligible portfolio company generally is a United States company that is not
an investment company and that:

      o     does not have a class of securities registered on an exchange or
            included in the Federal Reserve Board's over-the-counter margin
            list;
      o     is actively controlled by a BDC and has an affiliate of a BDC on its
            board of directors; or
      o     meets such other criteria as may be established by the SEC.

Control under the 1940 Act is presumed to exist where a BDC owns more than 25%
of the outstanding voting securities of the eligible portfolio company. We may
or may not control our portfolio companies. An example of an eligible portfolio
company is a new start up company or a privately owned company that has not yet
gone public by selling its shares in the open market and has not applied for
having its shares listed on a nationally recognized exchange such as the NYSE
the American Stock Exchange, National Association of Securities Dealers'
Automated Quotation System, or the National Market System. An eligible portfolio
company can also be one which is subject to filing, has filed, or has recently
emerged from reorganization protection under Chapter 11 of the Bankruptcy Act.
<PAGE>

A BDC may invest the remaining 30% of its total assets in non-qualifying assets,
including companies that are not eligible portfolio companies. The foregoing
percentages will be determined, in the case of financings in which a BDC commits
to provide financing prior to funding the commitment, by the amount of the BDC's
total assets represented by the value of the maximum amount of securities to be
issued by the borrower or lessee to the BDC pursuant to such commitment. As a
BDC, we must invest at least 70% of our total assets in qualifying assets but
may invest more in such qualifying assets.

Primary Strategy

We will have significant relative flexibility in selecting and structuring our
investments. We will not be subject to many of the regulatory limitations that
govern traditional lending institutions such as banks. We will seek to structure
our investments so as to take into account the uncertain and potentially
variable financial performance of our portfolio companies. This should enable
our portfolio companies to retain access to committed capital at different
stages in their development and eliminate some of the uncertainty surrounding
their capital allocation decisions. We will calculate rates of return on
invested capital based on a combination of up-front commitment fees, current and
deferred interest rates and residual values, which may take the form of common
stock, warrants, equity appreciation rights or future contract payments. We
believe that this flexible approach to structuring investments will facilitate
positive, long-term relationships with our portfolio companies and enable us to
become a preferred source of capital to them. We also believe our approach
should enable debt financing to develop into a viable alternative capital source
for funding the growth of target companies that wish to avoid the dilutive
effects of equity financings for existing equity holders.

Longer Investment Horizon - We will not be subject to periodic capital return
requirements. These requirements, which are standard for most private equity and
venture capital funds, typically require that these funds return to investors
the initial capital investment after a pre-agreed time, together with any
capital gains on such capital investment. These provisions often force such
funds to seek the return of their investments in portfolio companies through
mergers, public equity offerings or other liquidity events more quickly than
they otherwise might, which can result in a lower overall return to investors
and adversely affect the ultimate viability of the affected portfolio companies.
Because we may invest in the same portfolio companies as these funds, we are
subject to these risks if these funds demand a return on their investments in
the portfolio companies. We believe that our flexibility to take a longer-term
view should help us to maximize returns on our invested capital while still
meeting the needs of our portfolio companies.

Established Deal Sourcing Network - We believe that, through our management and
directors, we have solid contacts and sources from which to generate investment
opportunities. These contacts and sources include:

      o     public and private companies,
      o     investment bankers,
      o     attorneys,
      o     accountants,
      o     consultants, and
      o     commercial bankers.

However, we cannot assure you that such relationships will lead to the
origination of debt or other investments.

Investment Criteria

As a matter of policy, we will not purchase or sell real estate or interests in
real estate or real estate investment trusts except that we may:
<PAGE>

      o     purchase and sell real estate or interests in real estate in
            connection with the orderly liquidation of investments, or in
            connection with foreclosure on collateral;
      o     own the securities of companies that are in the business of buying,
            selling or developing real estate; or
      o     finance the purchase of real estate by our portfolio companies.

We will limit our investments in more traditional securities (stock and debt
instruments) and will not, as a matter of policy:

      o     sell securities short except with regard to managing the risks
            associated with publicly-traded securities issued by our portfolio
            companies;
      o     Purchase securities on margin (except to the extent that we may
            purchase securities with borrowed money); or
      o     engage in the purchase or sale of commodities or commodity
            contracts, including futures contracts except where necessary in
            working out distressed loan; or
      o     investment situations or in hedging the risks associated with
            interest rate fluctuations, and, in such cases, only after all
            necessary registrations or exemptions from registration with the
            Commodity Futures Trading Commission have been obtained.

Prospective Portfolio Company Characteristics - We have identified several
criteria that we believe will prove important in seeking our investment
objective with respect to target companies. These criteria will provide general
guidelines for our investment decisions; however, we caution readers that not
all of these criteria will be met by each prospective portfolio company in which
we choose to invest.

Experienced Management - We will generally require that our portfolio companies
have an experienced president or management team. We will also require the
portfolio companies to have in place proper incentives to induce management to
succeed and to act in concert with our interests as investors, including having
significant equity interests. We intend to provide assistance in this area
either supervising management or providing management for our portfolio
companies.

Products or Services - We will seek companies that are involved in products or
services that do not require significant additional capital or research
expenditures. In general, we will seek target companies that make innovative use
of proven technologies or methods.

Proprietary Advantage - We expect to favor companies that can demonstrate some
kind of proprietary sustainable advantage with respect to their competition.
Proprietary advantages include, but are not limited to:

      o     patents or trade secrets with respect to owning or manufacturing its
            products, and
      o     a demonstrable and sustainable marketing advantage over its
            competition

Marketing strategies impose unusual burdens on management to be continuously
ahead of its competition, either through some kind of technological advantage or
by being continuously more creative than its competition.

Profitable or Nearly Profitable Operations Based on Cash Flow from Operations -
We will focus on target companies that are profitable or nearly profitable on an
operating cash flow basis. Typically, we would not expect to invest in start-up
companies unless there is a clear exit strategy in place.

Potential for Future Growth - We will generally require that a prospective
target company, in addition to generating sufficient cash flow to cover its
operating costs and service its debt, demonstrate an ability to increase its
revenues and operating cash flow over time. The anticipated growth rate of a
prospective target company will be a key factor in determining the value that we
ascribe to any warrants or other equity securities that we may acquire in
connection with an investment in debt securities.

Exit Strategy - Prior to making an investment in a portfolio company, we will
analyze the potential for that company to increase the liquidity of its common
equity through a future event that would enable us to realize appreciation, if
any, in the value of our equity interest. Liquidity events may include:
<PAGE>

      o     an initial public offering,
      o     a private sale of our equity interest to a third party,
      o     a merger or an acquisition of the portfolio company, or
      o     a purchase of our equity position by the portfolio company or one of
            its stockholders.

We may acquire warrants to purchase equity securities and/or convertible
preferred stock of the eligible portfolio companies in connection with providing
financing. The terms of the warrants, including the expiration date, exercise
price and terms of the equity security for which the warrant may be exercised,
will be negotiated individually with each eligible portfolio company, and will
likely be affected by the price and terms of securities issued by the eligible
portfolio company to other venture capitalists and other holders. We anticipate
that most warrants will be for a term of five to ten years, and will have an
exercise price based upon the price at which the eligible portfolio company most
recently issued equity securities or, if a new equity offering is imminent,
equity securities. The equity securities for which the warrant will be exercised
generally will be common stock of which there may be one or more classes or
convertible preferred stock. Substantially all the warrants and underlying
equity securities will be restricted securities under the 1933 Act at the time
of the issuance. We will generally negotiate for registration rights with the
issuer that may provide:

      o     "piggyback" registration rights, which will permit us under certain
            circumstances, to include some or all of the securities owned by us
            in a registration statement filed by the eligible portfolio company,
            or
      o     in circumstances, "demand" registration rights permitting us under
            certain circumstances, to require the eligible portfolio company to
            register the securities under the 1933 Act, in some cases at our
            expense. We will generally negotiate net issuance provisions in the
            warrants, which will allow us to receive upon exercise of the
            warrant without payment of any cash a net amount of shares
            determined by the increase in the value of the issuer's stock above
            the exercise price stated in the warrant.

Liquidation Value of Assets - Although we do not intend to operate as an
asset-based lender, the prospective liquidation value of the assets, if any,
collateralizing any debt securities that we hold will be an important factor in
our credit analysis. We will emphasize both tangible assets, such as:

      o     accounts receivable,
      o     inventory, and
      o     equipment,

and intangible assets, such as:

      o     intellectual property,
      o     customer lists,
      o     networks, and
      o     databases.

Investment Process

Due Diligence - If a target company generally meets the characteristics
described above, we will perform initial due diligence, including: o company and
technology assessments, o existing management team, o market analysis, o
competitive analysis, o evaluation of management, risk analysis and transaction
size, o pricing, and o structure analysis.
<PAGE>

Much of this work will be done by management and professionals who are well
known by management. The criteria delineated above provide general parameters
for our investment decisions. We intend to pursue an investment strategy by
further imposing such criteria and reviews that best insures the value of our
investments. As unique circumstances may arise or be uncovered, not all of such
criteria will be followed in each instance but the process provides a guideline
by which investments can be prudently made and managed. Upon successful
completion of the preliminary evaluation, we will decide whether to deliver a
non-binding letter of intent and move forward towards the completion of a
transaction.

In our review of the management team, we look at the following:

      o     Interviews with management and significant shareholders, including
            any financial or strategic sponsor;
      o     Review of financing history;
      o     Review of management's track record with respect to:
            o     product development and marketing,
            o     mergers and acquisitions,
            o     alliances,
            o     collaborations,
            o     research and development outsourcing and other strategic
                  activities;
            o     Assessment of competition; and
            o     Review of exit strategies.

In our review of the financial conditions, we look at the following:

      o     Evaluation of future financing needs and plans;
      o     Detailed analysis of financial performance;
      o     Development of pro forma financial projections; and
      o     Review of assets and liabilities, including contingent liabilities,
            if any, and legal and regulatory risks.

In our review of the products and services of the portfolio company, we look at
the following:

      o     Evaluation of intellectual property position;
      o     Review of existing customer or similar agreements and arrangements;
      o     Analysis of core technology;
      o     Assessment of collaborations;
      o     Review of sales and marketing procedures; and
      o     Assessment of market and growth potential.

Upon completion of these analyses, we will conduct on-site visits with the
target company's management team. Also, in cases in which a target company is at
a mature stage of development and if other matters that warrant such an
evaluation, we will obtain an independent appraisal of the target company.

Ongoing Relationships with Portfolio Companies

Monitoring - We will continuously monitor our portfolio companies in order to
determine whether they are meeting our financing criteria and their respective
business plans. We may decline to make additional investments in portfolio
companies that do not continue to meet our financing criteria. However, we may
choose to make additional investments in portfolio companies that do not do so,
but we believe that we will nevertheless perform well in the future.

We will monitor the financial trends of each portfolio company to assess the
appropriate course of action for each company and to evaluate overall portfolio
quality. Our management team and consulting professionals, who are well known by
our management team, will closely monitor the status and performance of each
individual company on at least a quarterly and, in some cases, a monthly basis.
<PAGE>

We will use several methods of evaluating and monitoring the performance and
fair value of our debt and equity positions, including but not limited to the
following:

      o     Assessment of business development success, including product
            development, financings, profitability and the portfolio company's
            overall adherence to its business plan;
      o     Periodic and regular contact with portfolio company management to
            discuss financial position, requirements and accomplishments;
      o     Periodic and regular formal update interviews with portfolio company
            management and, if appropriate, the financial or strategic sponsor;
      o     Attendance at and participation in board meetings;
      o     Review of monthly and quarterly financial statements and financial
            projections for portfolio companies.

Managerial Assistance - As a business development company, we will offer, and in
many cases may provide, significant managerial assistance to our portfolio
companies. This assistance will typically involve:

      o     monitoring the operations of our portfolio companies,
      o     participating in their board and management meetings,
      o     consulting with and advising their officers, and
      o     providing other organizational and financial guidance.


Diversification

As a BDC, we must invest at least 70% of our total assets in qualifying assets
consisting of investments in eligible portfolio companies and certain other
assets including cash and cash equivalents. In order to receive favorable
pass-through tax treatment on its distributions to our shareholders, we intend
to diversify our pool of investments in such a manner so as to qualify as a
diversified closed end management investment company. However, because of the
limited size of the funding which is likely to be available to us, we will
likely be classified as a non-diversified closed end investment company under
the 1940 Act. Until we qualify as a registered investment company, we will not
be subject to the diversification requirements applicable to RICs under the
Internal Revenue Code. Therefore, we will not receive favorable pass through tax
treatment on distributions to our shareholders. In the future, we will seek to
increase the diversification of our portfolio so as to make it possible to meet
the RIC diversification requirements, as described below. We cannot assure you,
however, that we will ever be able to meet those requirements.

To qualify as a RIC, we must meet the issuer diversification standards under the
Internal Revenue Code that require that, at the close of each quarter of our
taxable year,

      o     not more than 25% of the market value of our total assets is
            invested in the securities of a single issuer, and
      o     at least 50% of the market value of our total assets is represented
            by cash, cash items, government securities, securities of other
            RICs, and other securities.

Each investment in these other securities is limited so that not more than 5% of
the market value of our total assets is invested in the securities of a single
issuer and we do not own more than 10% of the outstanding voting securities of a
single issuer. For purposes of the diversification requirements under the
Internal Revenue Code, the percentage of our total assets invested in securities
of a portfolio company will be deemed to refer, in the case of financings in
which we commit to provide financing prior to funding the commitment, to the
amount of our total assets represented by the value of the securities issued by
the eligible portfolio company to us at the time each portion of the commitment
is funded.

Investment Amounts

The amount of funds committed to a portfolio company and the ownership
percentage received will vary depending on the maturity of the portfolio
company, the quality and completeness of the portfolio company's management
team, the perceived business opportunity, the capital required compared to
existing capital, and the potential return. Although investment amounts will
vary considerably, we expect that the average investment, including follow-on
investments, will be between $25,000 and $500,000.
<PAGE>

Competition

Our primary competitors to provide financing to target companies will include
private equity and venture capital funds, other equity and non-equity based
investment funds and investment banks and other sources of financing, including
traditional financial services companies such as commercial banks and specialty
finance companies. Many of these entities have substantially greater financial
and managerial resources than we will have. We believe that our competitive
advantage with regard to quality target companies relates to our ability to
negotiate flexible terms and to complete our review process on a timely basis.
We cannot assure you that we will be successful in implementing our strategies.

                          THE COMPANY AND ITS STRUCTURE

The Board of Directors and its Committees

The Board of directors is empowered to manage and oversee the operations of a
BDC. As such, these decisions will be made according to guidelines adopted for
that purpose. All directors will be reimbursed by the Company for any expenses
incurred in attending directors' meetings provided that the Company has the
resources to pay these fees. The Company intends to applying for officers and
directors liability insurance at such time when it has the resources to do so.
The Company will maintain whatever insurance and surety bonds are necessary when
holding physical certificates and other assets in possession.

Audit Committee

An Audit Committee charter has been accepted and under the independent
directorship control of a majority of independent directors. The audit committee
will review the results and scope of the audit and other services provided by
the independent auditors and review and evaluate the system of internal
controls. The audit committee will assist in determining the carrying values of
portfolio investments.

Investment Committee

An Investment Committee charter and policy has been approved by, and is under
the directorship control of, a majority of independent directors. The function
of the charter and the committee will be to review and approve all investments
in excess of $25,000 and assist in determining the carrying values of portfolio
investments.

Compensation Committee

A Compensation Committee charter and policy has been approved by, and is under
the directorship of, a majority of independent directors. The purpose of the
compensation committee will be to manage the stock option plan and review and
recommend compensation arrangements for the officers.

Nominating Committee

A Nominating Committee charter has been accepted and under the independent
directorship control of a majority of independent directors. The primary role of
the Nominating Committee is to actively seek individuals qualified to become
members of the board of directors, while ensuring that proper evaluations and
performances are upheld within the boards.

Verification of Independent Directors

A resolution has been adopted and a policy for determination of Directors
independence has been established. Our independent directors have proclaimed and
established themselves as independent via the following proclamation as
established by the Independence Charter, including:
<PAGE>

      o     within the last five (5) years, has not received more than $50,000
            per year in direct compensation from the Corporation or any of its
            affiliates other than director and committee fees and pension or
            other forms of deferred compensation for prior service (provided
            such compensation is not contingent in any way on continued
            service);
      o     within the last five (5) years, has not been affiliated with or
            employed by any independent audit firm presently acting as auditor
            of the Corporation or an affiliate of the Corporation or having
            acted as such an auditor during the previous 5 years;
      o     within the past five (5) years, has had no personal service
            relationships and has not been affiliated with an organization that
            has had a personal service relationship with the Corporation, or
            with a member of the Corporation's senior management;
      o     within the past (5) years, has not accepted any fee or compensation
            from the Corporation other than director's fees and compensation;
      o     within the last five (5) years, has not had any material business
            relationship (such as commercial, industrial, consulting, legal, or
            accounting) with the Corporation for which the Corporation has been
            required to make disclosure under Regulation S-K of the Securities
            and Exchange Commission; and;
      o     within the past five (5) years, has not been part of an interlocking
            directorate in which an executive officer of the Corporation serves
            on the compensation committee or a committee of a similar nature of
            another company that concurrently employs the director.

Stock Option Plan

There presently is no stock option plan.

Executive Compensation

No officer, director or employee has received any cash compensation to date, and
no director, officer or employee has a contract or commitment to receive annual
compensation in excess of $100,000. Each officer will be paid a negotiated
percentage of profits for the events that they arrange. They will receive no
other compensation from us until we are operating profitably.

Conflicts of Interest

None of our key personnel is required to commit full time to our affairs and,
accordingly, these individuals may have conflicts of interest in allocating
management time among their various business activities. In the course of their
other business activities, certain key personnel may become aware of investment
and business opportunities which may be appropriate for presentation to us, as
well as the other entities with which they are affiliated. As such, they may
have conflicts of interest in determining to which entity a particular business
opportunity should be presented.

Each officer and director is, so long as he is officer or director subject to
the restriction that all opportunities contemplated by our plan of operation
that come to his attention, either in the performance of his duties or in any
other manner, will be considered opportunities of, and be made available to us
and the companies that he is affiliated with on an equal basis. A breach of this
requirement will be a breach of the fiduciary duties of the officer or director.
If we, or the companies to which the officer or director is affiliated, desire
to take advantage of an opportunity, then the applicable officer or director
would abstain from negotiating and voting upon the opportunity. However, to the
extent permitted under the 1940 Act, the officer or director may take advantage
of opportunities if we should decline to do so. Except as set forth above, we
have not adopted any other conflict of interest policy in connection with these
types of transactions.

Code of Ethics

We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that
establishes procedures for personal investments and restricts certain personal
securities transactions. Personnel subject to each code may invest in securities
for their personal investment accounts, including securities that may be
purchased or held by us, so long as such investments are made in accordance with
the code's requirements.

<PAGE>

Employees

As of May 27th, we had 2 employees. Various aspects of due diligence of
prospective portfolio companies and monitoring the activities of portfolio
companies will be subcontracted to consultants. The Company may require
additional employees in the areas of administration, sales and marketing, etc.
in the future and as additional portfolio companies are added. There is intense
competition for capable, experienced personnel and there is no assurance the
Company will be able to obtain new qualified employees when required. The
Company believes its relations with its prospective consultants and employees
are good.


                               PORTFOLIO COMPANIES

Current Portfolio Investments

At present, the company has made no investments in portfolio companies.

                         FINANCIAL AND OTHER INFORMATION

Other Regulatory Matters

We are a business development company under the 1940 Act. The 1940 Act contains
prohibitions and restrictions relating to transactions between business
development companies and their affiliates, including any investment advisers or
sub-advisers, principal underwriters and affiliates of those affiliates or
underwriters and requires that a majority of the directors be persons other than
interested persons, as that term is defined in the 1940 Act. In addition, the
1940 Act provides that we may not change the nature of our business so as to
cease to be, or to withdraw our election as, a business development company
unless approved by a majority of our outstanding voting securities.

We are permitted, under specified conditions, to issue multiple classes of
indebtedness and one class of stock senior to our common stock if our asset
coverage, as defined in the 1940 Act, is at least equal to 200% immediately
after each such issuance. In addition, while any senior securities remain
outstanding, we must make provisions to prohibit any distribution to our
stockholders or the repurchase of such securities or shares unless we meet the
applicable asset coverage ratios at the time of the distribution or repurchase.
We may also borrow amounts up to 5% of the value of our total assets for
temporary or emergency purposes. Regulations governing our operation as a BDC
will affect our ability to, and the way in which we raise additional capital,
which may expose us to risks, including the typical risks associated with
leverage.

No new pronouncement issued by the Financial Accounting Standards Board, the
American Institute of Certified Public Accountants or the Securities and
Exchange Commission is expected to have a material impact on The Company's
financial position or reported results of operations.

Determination of Net Asset Value

The net asset value per share of our outstanding shares of common stock will be
determined quarterly, as soon as practicable after, and as of the end of, each
calendar quarter, by dividing the value of total assets minus total liabilities
by the number of shares outstanding at the date as of which such determination
is made.

In calculating the value of our total assets, we will value securities that are
publicly traded at the closing price on the valuation date for exchange traded
and NASDAQ listed securities or the average of the bid and asked prices for
other securities. Debt and equity securities that are not publicly traded will
be valued at fair value as determined in good faith by a valuation committee of
our board of directors based on the recommendation by our investment adviser and
under valuation guidelines adopted by our board of directors, and then approved
by our entire board of directors. Initially, the fair value of these securities
will be their original cost. Debt securities valued at cost would be revalued
for significant events affecting the issuer's performance and equity securities
valued at cost would be revalued if significant developments or other factors
affecting the investment provide a basis for valuing the security at a price
other than cost, such as
<PAGE>

      o     results of subsequent financing,
      o     the availability of market quotations,
      o     the portfolio company's operations and
      o     changes in market conditions.

For warrants, our cost usually will be a nominal amount, such as $.01 per share.
Debt securities with remaining maturities of 60 days or less at the time of
purchase will be valued at amortized cost. Debt securities which are publicly
traded will be valued by using market quotations obtained from pricing services
or dealers. Our valuation guidelines will be subject to periodic review by our
board of directors and may be revised in light of our experience, regulatory
developments or otherwise.

Determination of fair values involves subjective judgment and estimates not
susceptible to substantiation by auditing procedures. Accordingly, under current
auditing standards, the notes to our financial statements will refer to the
uncertainty with respect to the possible effect of such valuations, and any
change in such valuations, on our financial statements.


ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
   (a) Financial Statements of Business Acquired

       None.

   (b) Pro Forma Financial Statements

       None

   (c) Exhibits

       None

<PAGE>
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
this report has been signed below by the following person on behalf of the
Registrant and in the capacity thereunto duly authorized, in Charlotte, North
Carolina, on the 27th day of May 2005.

                                   Chanticleer Holdings, Inc.


                                   By:/s/ Ross E. Silvey
                                      ------------------------------------------
                                      Ross E. Silvey, Chief Executive Officer
<PAGE>


                                  EXHIBIT INDEX

Exhibits

                  None.
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================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
              ----------------------------------------------------
                                    FORM 8-K
                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1933

                                  May 27, 2005
                Date of Report (Date of earliest event reported)
              ----------------------------------------------------
                           CHANTICLEER HOLDINGS, INC.
             (Exact name of registrant as specified in its charter)

                                    Delaware
         (State or other jurisdiction of incorporation or organization)

                                   52-2102141
                      (IRS Employer Identification Number)

                          6836 Morrison Blvd, Suite 200
                         Charlotte, North Carolina 28211

               (Address of principal executive offices) (ZIP Code)

                               Ross E. Silvey, CEO
                           Chanticleer Holdings, Inc.
                          6836 Morrison Blvd, Suite 200
                               Charlotte, NC 28211
                     (Name and address of agent for service)

                                  704-366-5054
          (Telephone number, including area code of agent for service)

         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_|   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))

          -------------------------------------------------------------
                                    Copy to:
                                  James Reskin
                               Reskin & Associates
                            520 South Fourth Street,
                            Louisville, KY 40202-2577
Section 8 - Other Events
Item 8.01. Other Events. Chanticleer Holdings, Inc. (the "Company"), is a
publicly traded Delaware corporation formed in October 1999 with its principal
offices and operations center in Charlotte, North Carolina. The Company has
recently filed a notification under Form N54a with the U.S. Securities and
Exchange Commission, (the "SEC") indicating its election to be regulated as a
business development company under the Investment Company Act of 1940 (the "1940
Act"). In connection with this election, the Company has adopted corporate
resolutions and intends to operate as a closed-end management investment company
as such a business development company (a "BDC"). We disclose the following
information which is a material departure from our prior business plan.

INVESTMENT STRATEGY

We have conducted limited operations to date. Under this recent election, we
have been organized to provide investors with the opportunity to participate,
with a modest amount in venture capital, in investments that are generally not
available to the public and that typically require substantially larger
financial commitments. In addition, we will provide professional management and
administration that might otherwise be unavailable to investors if they were to
engage directly in venture capital investing. We have decided to be regulated as
a business development company under the 1940 Act, and will operate as a
non-diversified company as that term is defined in Section 5(b)(2) of the 1940
Act. We will, at all times, conduct our business so as to retain our status as a
BDC. We may not change the nature of our business so as to cease to be, or
withdraw our election as, a BDC without the approval of the holders of a
majority of our outstanding voting stock as defined under the 1940 Act.

As a business development company, we are required to invest at least 70% of our
total assets in qualifying assets, which, generally, are securities of private
companies or securities of public companies whose securities are not eligible
for purchase on margin (which includes many companies with thinly traded
securities that are quoted in the pink sheets or the NASD Electronic Quotation
Service.) We must also offer to provide significant managerial assistance to
these portfolio companies. Qualifying assets may also include:

      o     cash,
      o     cash equivalents,
      o     U.S. Government securities, or
      o     high-quality debt investments maturing in one year or less from the
            date of investment.

We may invest a portion of the remaining 30% of our total assets in debt and/or
equity securities of companies that may be larger or more stabilized than target
portfolio companies.

Nature of a BDC

The 1940 Act defines a BDC as a closed-end management investment company that
provides small businesses that qualify as an eligible portfolio company with
investment capital and also significant managerial assistance. A BDC is required
under the 1940 Act to invest at least 70% of its total assets in qualifying
assets consisting of eligible portfolio companies as defined in the 1940 Act and
certain other assets including cash and cash equivalents.

An eligible portfolio company generally is a United States company that is not
an investment company and that:

      o     does not have a class of securities registered on an exchange or
            included in the Federal Reserve Board's over-the-counter margin
            list;
      o     is actively controlled by a BDC and has an affiliate of a BDC on its
            board of directors; or
      o     meets such other criteria as may be established by the SEC.

Control under the 1940 Act is presumed to exist where a BDC owns more than 25%
of the outstanding voting securities of the eligible portfolio company. We may
or may not control our portfolio companies. An example of an eligible portfolio
company is a new start up company or a privately owned company that has not yet
gone public by selling its shares in the open market and has not applied for
having its shares listed on a nationally recognized exchange such as the NYSE
the American Stock Exchange, National Association of Securities Dealers'
Automated Quotation System, or the National Market System. An eligible portfolio
company can also be one which is subject to filing, has filed, or has recently
emerged from reorganization protection under Chapter 11 of the Bankruptcy Act.
A BDC may invest the remaining 30% of its total assets in non-qualifying assets,
including companies that are not eligible portfolio companies. The foregoing
percentages will be determined, in the case of financings in which a BDC commits
to provide financing prior to funding the commitment, by the amount of the BDC's
total assets represented by the value of the maximum amount of securities to be
issued by the borrower or lessee to the BDC pursuant to such commitment. As a
BDC, we must invest at least 70% of our total assets in qualifying assets but
may invest more in such qualifying assets.

Primary Strategy

We will have significant relative flexibility in selecting and structuring our
investments. We will not be subject to many of the regulatory limitations that
govern traditional lending institutions such as banks. We will seek to structure
our investments so as to take into account the uncertain and potentially
variable financial performance of our portfolio companies. This should enable
our portfolio companies to retain access to committed capital at different
stages in their development and eliminate some of the uncertainty surrounding
their capital allocation decisions. We will calculate rates of return on
invested capital based on a combination of up-front commitment fees, current and
deferred interest rates and residual values, which may take the form of common
stock, warrants, equity appreciation rights or future contract payments. We
believe that this flexible approach to structuring investments will facilitate
positive, long-term relationships with our portfolio companies and enable us to
become a preferred source of capital to them. We also believe our approach
should enable debt financing to develop into a viable alternative capital source
for funding the growth of target companies that wish to avoid the dilutive
effects of equity financings for existing equity holders.

Longer Investment Horizon - We will not be subject to periodic capital return
requirements. These requirements, which are standard for most private equity and
venture capital funds, typically require that these funds return to investors
the initial capital investment after a pre-agreed time, together with any
capital gains on such capital investment. These provisions often force such
funds to seek the return of their investments in portfolio companies through
mergers, public equity offerings or other liquidity events more quickly than
they otherwise might, which can result in a lower overall return to investors
and adversely affect the ultimate viability of the affected portfolio companies.
Because we may invest in the same portfolio companies as these funds, we are
subject to these risks if these funds demand a return on their investments in
the portfolio companies. We believe that our flexibility to take a longer-term
view should help us to maximize returns on our invested capital while still
meeting the needs of our portfolio companies.

Established Deal Sourcing Network - We believe that, through our management and
directors, we have solid contacts and sources from which to generate investment
opportunities. These contacts and sources include:

      o     public and private companies,
      o     investment bankers,
      o     attorneys,
      o     accountants,
      o     consultants, and
      o     commercial bankers.

However, we cannot assure you that such relationships will lead to the
origination of debt or other investments.

Investment Criteria

As a matter of policy, we will not purchase or sell real estate or interests in
real estate or real estate investment trusts except that we may:
o     purchase and sell real estate or interests in real estate in
            connection with the orderly liquidation of investments, or in
            connection with foreclosure on collateral;
      o     own the securities of companies that are in the business of buying,
            selling or developing real estate; or
      o     finance the purchase of real estate by our portfolio companies.

We will limit our investments in more traditional securities (stock and debt
instruments) and will not, as a matter of policy:

      o     sell securities short except with regard to managing the risks
            associated with publicly-traded securities issued by our portfolio
            companies;
      o     Purchase securities on margin (except to the extent that we may
            purchase securities with borrowed money); or
      o     engage in the purchase or sale of commodities or commodity
            contracts, including futures contracts except where necessary in
            working out distressed loan; or
      o     investment situations or in hedging the risks associated with
            interest rate fluctuations, and, in such cases, only after all
            necessary registrations or exemptions from registration with the
            Commodity Futures Trading Commission have been obtained.

Prospective Portfolio Company Characteristics - We have identified several
criteria that we believe will prove important in seeking our investment
objective with respect to target companies. These criteria will provide general
guidelines for our investment decisions; however, we caution readers that not
all of these criteria will be met by each prospective portfolio company in which
we choose to invest.

Experienced Management - We will generally require that our portfolio companies
have an experienced president or management team. We will also require the
portfolio companies to have in place proper incentives to induce management to
succeed and to act in concert with our interests as investors, including having
significant equity interests. We intend to provide assistance in this area
either supervising management or providing management for our portfolio
companies.

Products or Services - We will seek companies that are involved in products or
services that do not require significant additional capital or research
expenditures. In general, we will seek target companies that make innovative use
of proven technologies or methods.

Proprietary Advantage - We expect to favor companies that can demonstrate some
kind of proprietary sustainable advantage with respect to their competition.
Proprietary advantages include, but are not limited to:

      o     patents or trade secrets with respect to owning or manufacturing its
            products, and
      o     a demonstrable and sustainable marketing advantage over its
            competition

Marketing strategies impose unusual burdens on management to be continuously
ahead of its competition, either through some kind of technological advantage or
by being continuously more creative than its competition.

Profitable or Nearly Profitable Operations Based on Cash Flow from Operations -
We will focus on target companies that are profitable or nearly profitable on an
operating cash flow basis. Typically, we would not expect to invest in start-up
companies unless there is a clear exit strategy in place.

Potential for Future Growth - We will generally require that a prospective
target company, in addition to generating sufficient cash flow to cover its
operating costs and service its debt, demonstrate an ability to increase its
revenues and operating cash flow over time. The anticipated growth rate of a
prospective target company will be a key factor in determining the value that we
ascribe to any warrants or other equity securities that we may acquire in
connection with an investment in debt securities.

Exit Strategy - Prior to making an investment in a portfolio company, we will
analyze the potential for that company to increase the liquidity of its common
equity through a future event that would enable us to realize appreciation, if
any, in the value of our equity interest. Liquidity events may include:
o     an initial public offering,
      o     a private sale of our equity interest to a third party,
      o     a merger or an acquisition of the portfolio company, or
      o     a purchase of our equity position by the portfolio company or one of
            its stockholders.

We may acquire warrants to purchase equity securities and/or convertible
preferred stock of the eligible portfolio companies in connection with providing
financing. The terms of the warrants, including the expiration date, exercise
price and terms of the equity security for which the warrant may be exercised,
will be negotiated individually with each eligible portfolio company, and will
likely be affected by the price and terms of securities issued by the eligible
portfolio company to other venture capitalists and other holders. We anticipate
that most warrants will be for a term of five to ten years, and will have an
exercise price based upon the price at which the eligible portfolio company most
recently issued equity securities or, if a new equity offering is imminent,
equity securities. The equity securities for which the warrant will be exercised
generally will be common stock of which there may be one or more classes or
convertible preferred stock. Substantially all the warrants and underlying
equity securities will be restricted securities under the 1933 Act at the time
of the issuance. We will generally negotiate for registration rights with the
issuer that may provide:

      o     "piggyback" registration rights, which will permit us under certain
            circumstances, to include some or all of the securities owned by us
            in a registration statement filed by the eligible portfolio company,
            or
      o     in circumstances, "demand" registration rights permitting us under
            certain circumstances, to require the eligible portfolio company to
            register the securities under the 1933 Act, in some cases at our
            expense. We will generally negotiate net issuance provisions in the
            warrants, which will allow us to receive upon exercise of the
            warrant without payment of any cash a net amount of shares
            determined by the increase in the value of the issuer's stock above
            the exercise price stated in the warrant.

Liquidation Value of Assets - Although we do not intend to operate as an
asset-based lender, the prospective liquidation value of the assets, if any,
collateralizing any debt securities that we hold will be an important factor in
our credit analysis. We will emphasize both tangible assets, such as:

      o     accounts receivable,
      o     inventory, and
      o     equipment,

and intangible assets, such as:

      o     intellectual property,
      o     customer lists,
      o     networks, and
      o     databases.

Investment Process

Due Diligence - If a target company generally meets the characteristics
described above, we will perform initial due diligence, including: o company and
technology assessments, o existing management team, o market analysis, o
competitive analysis, o evaluation of management, risk analysis and transaction
size, o pricing, and o structure analysis.
Much of this work will be done by management and professionals who are well
known by management. The criteria delineated above provide general parameters
for our investment decisions. We intend to pursue an investment strategy by
further imposing such criteria and reviews that best insures the value of our
investments. As unique circumstances may arise or be uncovered, not all of such
criteria will be followed in each instance but the process provides a guideline
by which investments can be prudently made and managed. Upon successful
completion of the preliminary evaluation, we will decide whether to deliver a
non-binding letter of intent and move forward towards the completion of a
transaction.

In our review of the management team, we look at the following:

      o     Interviews with management and significant shareholders, including
            any financial or strategic sponsor;
      o     Review of financing history;
      o     Review of management's track record with respect to:
            o     product development and marketing,
            o     mergers and acquisitions,
            o     alliances,
            o     collaborations,
            o     research and development outsourcing and other strategic
                  activities;
            o     Assessment of competition; and
            o     Review of exit strategies.

In our review of the financial conditions, we look at the following:

      o     Evaluation of future financing needs and plans;
      o     Detailed analysis of financial performance;
      o     Development of pro forma financial projections; and
      o     Review of assets and liabilities, including contingent liabilities,
            if any, and legal and regulatory risks.

In our review of the products and services of the portfolio company, we look at
the following:

      o     Evaluation of intellectual property position;
      o     Review of existing customer or similar agreements and arrangements;
      o     Analysis of core technology;
      o     Assessment of collaborations;
      o     Review of sales and marketing procedures; and
      o     Assessment of market and growth potential.

Upon completion of these analyses, we will conduct on-site visits with the
target company's management team. Also, in cases in which a target company is at
a mature stage of development and if other matters that warrant such an
evaluation, we will obtain an independent appraisal of the target company.

Ongoing Relationships with Portfolio Companies

Monitoring - We will continuously monitor our portfolio companies in order to
determine whether they are meeting our financing criteria and their respective
business plans. We may decline to make additional investments in portfolio
companies that do not continue to meet our financing criteria. However, we may
choose to make additional investments in portfolio companies that do not do so,
but we believe that we will nevertheless perform well in the future.

We will monitor the financial trends of each portfolio company to assess the
appropriate course of action for each company and to evaluate overall portfolio
quality. Our management team and consulting professionals, who are well known by
our management team, will closely monitor the status and performance of each
individual company on at least a quarterly and, in some cases, a monthly basis.
We will use several methods of evaluating and monitoring the performance and
fair value of our debt and equity positions, including but not limited to the
following:

      o     Assessment of business development success, including product
            development, financings, profitability and the portfolio company's
            overall adherence to its business plan;
      o     Periodic and regular contact with portfolio company management to
            discuss financial position, requirements and accomplishments;
      o     Periodic and regular formal update interviews with portfolio company
            management and, if appropriate, the financial or strategic sponsor;
      o     Attendance at and participation in board meetings;
      o     Review of monthly and quarterly financial statements and financial
            projections for portfolio companies.

Managerial Assistance - As a business development company, we will offer, and in
many cases may provide, significant managerial assistance to our portfolio
companies. This assistance will typically involve:

      o     monitoring the operations of our portfolio companies,
      o     participating in their board and management meetings,
      o     consulting with and advising their officers, and
      o     providing other organizational and financial guidance.

Diversification

As a BDC, we must invest at least 70% of our total assets in qualifying assets
consisting of investments in eligible portfolio companies and certain other
assets including cash and cash equivalents. In order to receive favorable
pass-through tax treatment on its distributions to our shareholders, we intend
to diversify our pool of investments in such a manner so as to qualify as a
diversified closed end management investment company. However, because of the
limited size of the funding which is likely to be available to us, we will
likely be classified as a non-diversified closed end investment company under
the 1940 Act. Until we qualify as a registered investment company, we will not
be subject to the diversification requirements applicable to RICs under the
Internal Revenue Code. Therefore, we will not receive favorable pass through tax
treatment on distributions to our shareholders. In the future, we will seek to
increase the diversification of our portfolio so as to make it possible to meet
the RIC diversification requirements, as described below. We cannot assure you,
however, that we will ever be able to meet those requirements.

To qualify as a RIC, we must meet the issuer diversification standards under the
Internal Revenue Code that require that, at the close of each quarter of our
taxable year,

      o     not more than 25% of the market value of our total assets is
            invested in the securities of a single issuer, and
      o     at least 50% of the market value of our total assets is represented
            by cash, cash items, government securities, securities of other
            RICs, and other securities.

Each investment in these other securities is limited so that not more than 5% of
the market value of our total assets is invested in the securities of a single
issuer and we do not own more than 10% of the outstanding voting securities of a
single issuer. For purposes of the diversification requirements under the
Internal Revenue Code, the percentage of our total assets invested in securities
of a portfolio company will be deemed to refer, in the case of financings in
which we commit to provide financing prior to funding the commitment, to the
amount of our total assets represented by the value of the securities issued by
the eligible portfolio company to us at the time each portion of the commitment
is funded.

Investment Amounts

The amount of funds committed to a portfolio company and the ownership
percentage received will vary depending on the maturity of the portfolio
company, the quality and completeness of the portfolio company's management
team, the perceived business opportunity, the capital required compared to
existing capital, and the potential return. Although investment amounts will
vary considerably, we expect that the average investment, including follow-on
investments, will be between $25,000 and $500,000.
Competition

Our primary competitors to provide financing to target companies will include
private equity and venture capital funds, other equity and non-equity based
investment funds and investment banks and other sources of financing, including
traditional financial services companies such as commercial banks and specialty
finance companies. Many of these entities have substantially greater financial
and managerial resources than we will have. We believe that our competitive
advantage with regard to quality target companies relates to our ability to
negotiate flexible terms and to complete our review process on a timely basis.
We cannot assure you that we will be successful in implementing our strategies.

                          THE COMPANY AND ITS STRUCTURE

The Board of Directors and its Committees

The Board of directors is empowered to manage and oversee the operations of a
BDC. As such, these decisions will be made according to guidelines adopted for
that purpose. All directors will be reimbursed by the Company for any expenses
incurred in attending directors' meetings provided that the Company has the
resources to pay these fees. The Company intends to applying for officers and
directors liability insurance at such time when it has the resources to do so.
The Company will maintain whatever insurance and surety bonds are necessary when
holding physical certificates and other assets in possession.

Audit Committee

An Audit Committee charter has been accepted and under the independent
directorship control of a majority of independent directors. The audit committee
will review the results and scope of the audit and other services provided by
the independent auditors and review and evaluate the system of internal
controls. The audit committee will assist in determining the carrying values of
portfolio investments.

Investment Committee

An Investment Committee charter and policy has been approved by, and is under
the directorship control of, a majority of independent directors. The function
of the charter and the committee will be to review and approve all investments
in excess of $25,000 and assist in determining the carrying values of portfolio
investments.

Compensation Committee

A Compensation Committee charter and policy has been approved by, and is under
the directorship of, a majority of independent directors. The purpose of the
compensation committee will be to manage the stock option plan and review and
recommend compensation arrangements for the officers.

Nominating Committee

A Nominating Committee charter has been accepted and under the independent
directorship control of a majority of independent directors. The primary role of
the Nominating Committee is to actively seek individuals qualified to become
members of the board of directors, while ensuring that proper evaluations and
performances are upheld within the boards.

Verification of Independent Directors

A resolution has been adopted and a policy for determination of Directors
independence has been established. Our independent directors have proclaimed and
established themselves as independent via the following proclamation as
established by the Independence Charter, including:
o     within the last five (5) years, has not received more than $50,000
            per year in direct compensation from the Corporation or any of its
            affiliates other than director and committee fees and pension or
            other forms of deferred compensation for prior service (provided
            such compensation is not contingent in any way on continued
            service);
      o     within the last five (5) years, has not been affiliated with or
            employed by any independent audit firm presently acting as auditor
            of the Corporation or an affiliate of the Corporation or having
            acted as such an auditor during the previous 5 years;
      o     within the past five (5) years, has had no personal service
            relationships and has not been affiliated with an organization that
            has had a personal service relationship with the Corporation, or
            with a member of the Corporation's senior management;
      o     within the past (5) years, has not accepted any fee or compensation
            from the Corporation other than director's fees and compensation;
      o     within the last five (5) years, has not had any material business
            relationship (such as commercial, industrial, consulting, legal, or
            accounting) with the Corporation for which the Corporation has been
            required to make disclosure under Regulation S-K of the Securities
            and Exchange Commission; and;
      o     within the past five (5) years, has not been part of an interlocking
            directorate in which an executive officer of the Corporation serves
            on the compensation committee or a committee of a similar nature of
            another company that concurrently employs the director.

Stock Option Plan

There presently is no stock option plan.

Executive Compensation

No officer, director or employee has received any cash compensation to date, and
no director, officer or employee has a contract or commitment to receive annual
compensation in excess of $100,000. Each officer will be paid a negotiated
percentage of profits for the events that they arrange. They will receive no
other compensation from us until we are operating profitably.

Conflicts of Interest

None of our key personnel is required to commit full time to our affairs and,
accordingly, these individuals may have conflicts of interest in allocating
management time among their various business activities. In the course of their
other business activities, certain key personnel may become aware of investment
and business opportunities which may be appropriate for presentation to us, as
well as the other entities with which they are affiliated. As such, they may
have conflicts of interest in determining to which entity a particular business
opportunity should be presented.

Each officer and director is, so long as he is officer or director subject to
the restriction that all opportunities contemplated by our plan of operation
that come to his attention, either in the performance of his duties or in any
other manner, will be considered opportunities of, and be made available to us
and the companies that he is affiliated with on an equal basis. A breach of this
requirement will be a breach of the fiduciary duties of the officer or director.
If we, or the companies to which the officer or director is affiliated, desire
to take advantage of an opportunity, then the applicable officer or director
would abstain from negotiating and voting upon the opportunity. However, to the
extent permitted under the 1940 Act, the officer or director may take advantage
of opportunities if we should decline to do so. Except as set forth above, we
have not adopted any other conflict of interest policy in connection with these
types of transactions.

Code of Ethics

We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that
establishes procedures for personal investments and restricts certain personal
securities transactions. Personnel subject to each code may invest in securities
for their personal investment accounts, including securities that may be
purchased or held by us, so long as such investments are made in accordance with
the code's requirements.
Employees

As of May 27th, we had 2 employees. Various aspects of due diligence of
prospective portfolio companies and monitoring the activities of portfolio
companies will be subcontracted to consultants. The Company may require
additional employees in the areas of administration, sales and marketing, etc.
in the future and as additional portfolio companies are added. There is intense
competition for capable, experienced personnel and there is no assurance the
Company will be able to obtain new qualified employees when required. The
Company believes its relations with its prospective consultants and employees
are good.

                               PORTFOLIO COMPANIES

Current Portfolio Investments

At present, the company has made no investments in portfolio companies.

                         FINANCIAL AND OTHER INFORMATION

Other Regulatory Matters

We are a business development company under the 1940 Act. The 1940 Act contains
prohibitions and restrictions relating to transactions between business
development companies and their affiliates, including any investment advisers or
sub-advisers, principal underwriters and affiliates of those affiliates or
underwriters and requires that a majority of the directors be persons other than
interested persons, as that term is defined in the 1940 Act. In addition, the
1940 Act provides that we may not change the nature of our business so as to
cease to be, or to withdraw our election as, a business development company
unless approved by a majority of our outstanding voting securities.

We are permitted, under specified conditions, to issue multiple classes of
indebtedness and one class of stock senior to our common stock if our asset
coverage, as defined in the 1940 Act, is at least equal to 200% immediately
after each such issuance. In addition, while any senior securities remain
outstanding, we must make provisions to prohibit any distribution to our
stockholders or the repurchase of such securities or shares unless we meet the
applicable asset coverage ratios at the time of the distribution or repurchase.
We may also borrow amounts up to 5% of the value of our total assets for
temporary or emergency purposes. Regulations governing our operation as a BDC
will affect our ability to, and the way in which we raise additional capital,
which may expose us to risks, including the typical risks associated with
leverage.

No new pronouncement issued by the Financial Accounting Standards Board, the
American Institute of Certified Public Accountants or the Securities and
Exchange Commission is expected to have a material impact on The Company's
financial position or reported results of operations.

Determination of Net Asset Value

The net asset value per share of our outstanding shares of common stock will be
determined quarterly, as soon as practicable after, and as of the end of, each
calendar quarter, by dividing the value of total assets minus total liabilities
by the number of shares outstanding at the date as of which such determination
is made.

In calculating the value of our total assets, we will value securities that are
publicly traded at the closing price on the valuation date for exchange traded
and NASDAQ listed securities or the average of the bid and asked prices for
other securities. Debt and equity securities that are not publicly traded will
be valued at fair value as determined in good faith by a valuation committee of
our board of directors based on the recommendation by our investment adviser and
under valuation guidelines adopted by our board of directors, and then approved
by our entire board of directors. Initially, the fair value of these securities
will be their original cost. Debt securities valued at cost would be revalued
for significant events affecting the issuer's performance and equity securities
valued at cost would be revalued if significant developments or other factors
affecting the investment provide a basis for valuing the security at a price
other than cost, such as
o     results of subsequent financing,
      o     the availability of market quotations,
      o     the portfolio company's operations and
      o     changes in market conditions.

For warrants, our cost usually will be a nominal amount, such as $.01 per share.
Debt securities with remaining maturities of 60 days or less at the time of
purchase will be valued at amortized cost. Debt securities which are publicly
traded will be valued by using market quotations obtained from pricing services
or dealers. Our valuation guidelines will be subject to periodic review by our
board of directors and may be revised in light of our experience, regulatory
developments or otherwise.

Determination of fair values involves subjective judgment and estimates not
susceptible to substantiation by auditing procedures. Accordingly, under current
auditing standards, the notes to our financial statements will refer to the
uncertainty with respect to the possible effect of such valuations, and any
change in such valuations, on our financial statements.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
   (a) Financial Statements of Business Acquired

       None.

   (b) Pro Forma Financial Statements

       None

   (c) Exhibits

       None
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
this report has been signed below by the following person on behalf of the
Registrant and in the capacity thereunto duly authorized, in Charlotte, North
Carolina, on the 27th day of May 2005.

                                   Chanticleer Holdings, Inc.

                                   By:/s/ Ross E. Silvey
                                      ------------------------------------------
                                      Ross E. Silvey, Chief Executive Officer
EXHIBIT INDEX

Exhibits

                  None.