EDMONTON, March 17 /CNW/ - Planet Organic Health Corp (TSX Venture Exchange - "POH"), Mr. Darren Krissie, Executive Vice President of Planet Organic Health Corp. (the "Corporation"), announces the Corporation has concluded the sale of its Trophic Vitamin Division to Atrium Innovations Inc. for gross proceeds of $10.6M (Cdn.), subject to customary post closing adjustments and holdbacks. In addition, the Corporation has concluded the sale of its six Healthy's locations to Good Health Mart in Ontario for an undisclosed amount. The sale proceeds will be used to reduce corporate debt. As previously announced in Stockwatch on March 1, 2010, the Corporation is continuing to review all strategic options available to reduce corporate debt.
Mr. Krissie states "The sale of our Trophic Division to Atrium is a positive step towards completing the corporation restructuring we initiated six months ago. More importantly, Atrium will be a great partner to Trophic in providing them support to grow their business."
Notwithstanding the sale of Trophic, shareholders are reminded that the Corporation remains in default under its credit facilities and accordingly the lenders have the legal right to demand repayment of all indebtedness and enforce their security over all of the Corporation's assets. To date to the Corporation has not been successful in arranging financing from other sources to meet its debt obligations to the lenders. The Corporation is reviewing all financing options in order to eliminate its aggregate debt load.
Partnership Capital Growth acted as Planet Organic's exclusive financial advisor for the sale of Trophic to Atrium and will receive a transaction fee in conjunction with the sale. Brent Knudsen is a principal with Partnership Capital Growth and also a director and officer of Planet Organic.
Atrium Innovations Inc. is a globally recognized leader in the innovation, formulation, production and commercialization of science-based and professionally endorsed products for the Health & Nutrition industry. The Company focuses primarily on growing segments of the health and nutrition markets which are benefiting from the trends towards healthy living and the ageing of the population. Atrium markets a broad portfolio of finished products through its highly specialized sales and marketing network in more than 35 countries, primarily in North America and Europe. Atrium has approximately 925 employees and operates eight manufacturing facilities. Additional information about Atrium is available on its website at www.atriuminnovations.com.
ABOUT PARTNERSHIP CAPITAL GROWTH
Partnership Capital Growth is a boutique investment bank that provides full-service merger and acquisition, financing and capital structure advisory services to middle market companies. The company focuses exclusively on consumer products and services in the areas of healthy, active and sustainable living. Partnership Capital Growth is based in San Francisco, California. www.pcg-advisors.com
ABOUT PLANET ORGANIC
Planet Organic Health Corp. (TSX-V: POH) is a natural products industry company, comprising manufacturing and retail. Planet is listed on the TSX Venture Exchange as a Tier One company. Planet operates nine natural food supermarkets throughout Canada under the Planet Organic Market banner and eleven natural food supermarkets in the U.S. under the Mrs Green's Natural Markets banner. Another Planet Organic company, Trophic Canada is the country's leading manufacturer of natural supplements. The Company has a total of 9 stores throughout Canada and 11 in the U.S.
TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Planet. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues", or similar words and include but are not limited to, statements regarding the accretive effects of the acquisition and the anticipated results and expected benefits of the acquisition upon closing thereof. Planet Organic believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Planet Organic's continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Planet Organic's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Planet Organic. Any forward-looking statements are made as of the date hereof and Planet Organic does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.
SOURCE PLANET ORGANIC HEALTH CORP.
For further information: For further information: Planet Organic Health Corp., Darren Krissie, Executive VP, Business Development, (780) 719-4667