Smoky Market Foods Executing on Refined Plan
28 April 2014 - 4:25PM
Marketwired
Smoky Market Foods Executing on Refined Plan
WEBSTER CITY, IA--(Marketwired - Apr 28, 2014) - Smoky Market
Foods, Inc. (OTC-PINK: SMKY) (PINKSHEETS: SMKY) announced today its
guidance for implementation of a significantly refined financing
and operating plan. This development has been accomplished through
continued private financial support from Company officers and
investors. "SMKY's story the past few years has admittedly been
difficult for shareholders and investors to understand," said Eddie
Feintech, Chairman, President and CEO. "It's been an enduring
process to both get it right, and get it done fairly and equitably
for existing shareholders," he continued.
The Company engaged a team of consulting affiliates to provide
marketing and investment banking expertise and assistance to refine
its financial marketing plan, and execute a focused strategy that
leverages both its status as a reporting public company, and its
capabilities to produce artisan quality, value-added smoked food
for international distribution. Said Mr. Feintech, "We refined and
focused our plan to achieve two objectives, and they brought forth
the financing to execute." The Company will begin to produce
product and fill specific pipelines of distribution to gain revenue
traction, and simultaneously seek selected food companies that meet
criteria as a strategic business to acquire.
To finance such acquisitions, the Company has signed two
investment banking agreements with a leading New York-based
investment bank to assist in placing its acquisition financing and
to raise equity by public offering. The investment banking firm,
founded in 1925 and one of the oldest in the United States, is a
member of the New York Stock Exchange and a full-service
broker-dealer employing over 500 people. The firm manages two
Morningstar-rated mutual funds and has five offices throughout the
country, with over 70 retail brokers, over 10 research analysts and
a pair of institutional desks trading for 800 institutional clients
throughout the world.
Under the first agreement, the Company has retained the
investment banking firm as its exclusive placement agent and
financial advisor in connection with acquisition financing of up to
$30,000,000 in senior secured debt. The Company must meet various
terms and conditions, which it believes are reasonable and
attainable in due course of business of this type. "In tapping
fully this facility of acquisition financing during 2014, with its
unique program structure, our intent is to acquire up to $75M in
strategic food sector revenue that also creates expanded channels
of distribution -- and on an international scale -- for our smoked
foods," Mr. Feintech said.
The second agreement is a $30,000,000 firm commitment to
underwrite a public equity offering on a major exchange (AMEX or
NASDAQ) represented by the investment banking firm. The planned
public offering is subject to the Company's successful auditing and
acquisition of its current target companies, and would pay off the
Company's acquisition debt. Said Mr. Feintech, "We are very pleased
to establish this relationship with such a prestigious New York
Stock Exchange member firm, which confirms and validates our
business plan. We expect the assistance of this well-established
investment bank to accelerate our growth strategy through
acquisitions and with their assistance, move us up to trade on the
NASDAQ or AMEX. We are launching an aggressive search for strategic
acquisitions, with our internal due diligence already focused on
acquiring our Iowa processor and beginning on several other
identified acquisition targets. We believe we can meet and satisfy
the terms and conditions in both investment banking agreements, and
execute upon our business model successfully."
Using proceeds received from bridge money investors, the
Company's immediate and near-term actions are focused upon specific
objectives that will manicure its corporate profile and include i)
bringing its SEC filings current; ii) building sales revenue; iii)
paying off outstanding convertible notes, and iv) negotiating to
buy strategic food companies. "In our situation, tactical financial
maneuvering that is prudent and preserves the integrity of common
shareholders just takes time. We're clearing over 90% of our debt
from the balance sheet and we've positioned ourselves with an
element of control over certain of the events that we've committed
to make happen," said Mr. Feintech. "I've got the right players
fully engaged and aggressively motivated. Money and effective
players make things happen," he said.
ABOUT SMOKY MARKET FOODS Smoky Market Foods, Inc. is a producer
and distributor of artisan-quality, Smoke-Baked™ foods that are
prepared authentically using a unique wood-burning oven system, and
sold under the brand names of Smoky Market® and Smoky Kosher.
Because of its proprietary wood-burning oven technology, which
burns freshly-cut hickory and apple timber to impart a genuine
smoky flavor, the Company's Smoke-Baked meat and fish are truly
prepared the old-fashioned way, without the use of any additives or
chemical preservatives. This aspect of quality wholesomeness in
prepared food processing is a market niche feature. Smoky Market
Foods, Inc. intends to build international retail and foodservice
channels of distribution for its smoked foods, and to accelerate
its overall corporate revenue growth through making strategic food
company acquisitions.
FORWARD-LOOKING STATEMENTS Statements in this news release
regarding future financial and operating results, future growth in
research and development programs, potential applications of our
technology, opportunities for the company and any other statements
about the future expectations, beliefs, goals, plans, or prospects
expressed by management constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Any statements that are not statements of historical fact
(including statements containing the words "will," "believes,"
"plans," "anticipates," "expects," "estimates," and similar
expressions) should also be considered to be forward-looking
statements. There are a number of important factors that could
cause actual results or events to differ materially from those
indicated by such forward-looking statements, including: our
limited operating history, need for future capital and need to
enter into relationships with retailers for retail merchandising
business, supply and distribution risks, risks inherent in the
development and commercialization of potential products, protection
of our intellectual property, and economic conditions generally.
Additional information on potential factors that could affect our
results and other risks and uncertainties are detailed from time to
time in the company's periodic reports, including the company's
most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q. Forward-looking statements are based on the beliefs,
opinions, and expectations of the company's management at the time
they are made, and the company does not assume any obligation to
update its forward-looking statements if those beliefs, opinions,
expectations, or other circumstances should change.
SMOKY MARKET FOODS, INC. Investor Relations P.O. Box 2864 Aptos,
CA 95001 buysmoked@smokymarket.com