EDMONTON, Sept. 16 /CNW/ - Planet Organic Health Corp (TSX Venture Exchange - "POH"), Planet Organic Health Corp.'s (the "Corporation") board of directors is continuing to review its strategic alternatives for optimizing shareholder value with the objectives of reducing corporate debt and focusing its resources on the most profitable operating segments of its business.
In keeping with these objectives, the board of directors is considering disposing of certain non-core assets in order to reduce its aggregate debt load, which is currently $39,284,258 Cdn. The Corporation has engaged a reputable investment bank to evaluate the sale of certain assets and/or its operations on a case by case basis. The Corporation cautions shareholders that no specific timetable has been set as it relates to any dispositions due to continuing market weakness. Shareholders are further cautioned that the Corporation's lenders have the legal right to enforce their general security agreement over all of the Corporation's assets immediately. It may be necessary for the Corporation to consider substantial divestitures of its current operations to satisfy its debt obligations and continue operating as a going concern. In an effort to reduce administrative overhead, the Corporation's board of directors have approved a possible future delisting from the TSXV. Any subsequent transactions may be subject to regulatory and/or shareholder approval and there is no assurance that the review conducted by the board will result in any specific transactions being completed.
The Corporation remains in default of its debt facilities and is currently in the process of negotiating a Forbearance Agreement with its lenders, but has not come to terms at this point. In the event negotiations with the lenders are not successful in refinancing the Corporation and re-setting its loan covenants, the Corporation will be forced to seek financing from other sources to meet debt repayment needs if the current lenders demand repayment of the outstanding amounts payable. Although credit markets appear to be strengthening, there is uncertainty whether sufficient funding would be available from current lenders or other parties.
In addition to the above, the following management changes have been implemented and take effect immediately. Brent Knudsen, currently a director of the Corporation and a member of the "Office of the CEO" has accepted the role as Chairman of the Board, Darren Krissie has accepted the role of Executive Vice President, Business Development and continues to work in the "Office of the CEO" with Brent Knudsen and Arthur Warshaw (Advisor). Yvan Boutin, currently the Corporation's Director of Finance, has accepted the role of Chief Financial Officer, subject to TSXV acceptance. Ron Francisco, the Corporation's former President, CEO, and Chairman of the Board, has been released from all formal roles with the Corporation but remains a member of the board of directors.
The Corporation will be releasing its annual financial statements and MD&A, which will include all financial data, at the market close Wednesday October 28, 2009 with a press release scheduled for the same time.
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 ten 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. The Company also operates 43 natural health outlets under the
Sangster's Health Centre banner and seven natural health outlets under the
Healthy's (Planet Organic Living) banner. Another Planet Organic company,
Trophic Canada is the country's leading manufacturer of natural supplements.
The Company has a total of 60 stores throughout Canada and 11 in the U.S.
The TSX Venture Exchange has not reviewed and does not accept
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