WEBSTER CITY, Iowa — Smoky Market Foods, Inc. announced that certain events will occur during the month of August 2011, relative to its SEC filings, launch of Internet sales and development plans for a Canadian operating subsidiary. "We've weathered a horrific economic storm these past few years and have endured the learning curve process," said Mr. Feintech, Chairman, President & CEO of Smoky Market Foods, Inc. (the "Company"). "Creative structures of financing are allowing the Company to position for a launch of operations in August and to raise capital in a manner supportive of shareholder equity," he continued.
During the month of August, the Company is bringing current its filings of the 2010, 10K and 2011 first quarter 10Q, with its second quarter 10Q also to be filed. The re-branding of its Smoky Market logo and consumer identity is completed and the new Smoky Market web site will be introduced in a few weeks for on-line sales of its salmon as the introductory product, with marketing supported by low-cost social networking media. The Company intends to launch its ads on Weight Watchers' web site in both the US and Canada, as well as on other affiliate web sites with national exposure in the very near future, and with capital being provided by private financing structures that include a sale lease-back transaction of its smoker-oven system and the planned offering of its Preferred Stock after revenue has begun. Also during August, the Company intends to consummate an agreement with a Canadian fishing group for which it will establish a subsidiary company in Canada for production of (wild caught) smoked fish and worldwide distribution. "Our objective with these national and international affiliate distribution channels is to achieve a full utilization of our existing production capacity as soon as possible, which would take SMKY to a level of $30 million annual revenue," Mr. Feintech said.
In response to shareholder e-mails received by Mr. Feintech on the issue of the Company's financing structures and potential dilution, Mr. Feintech explained:
"The oven lease Fund set up by an Iowa investor is financing our interim launch period with crucial cash, for which no shares will be issued for a period of three years, affording SMKY its opportunity to grow and to mature as a profitable public company. SMKY is paying a 20x return to investors buying Units in this Fund, but SMKY gets the cash now and it is my belief that in three years upon conversion of the 20x into SMKY shares, the investor will be receiving shares at a cost value well into triple digits. We should save millions of shares of dilution as no shares are being issued now (based on some large discount to our current market) to come back at us in the near future. The Preferred Stock offering is to be structured in principally the same manner, but will pay considerably less conversion return because it's "post-revenue" financing; SMKY would be generating revenue through national affiliations that demonstrate traction. It's expansion financing, but still offering to investors a very attractive 3x to 5x conversion return in three years, while again keeping shares from coming back against SMKY's market and giving SMKY time to grow its profits and market appreciation." Mr. Feintech added, "I haven't invested my life's earnings and time thus far only to see its value sold out from underneath me as a result of having to accept some form of toxic financing deal that severely dilutes shareholder equity."
ABOUT SMOKY MARKET FOODS
Smoky Market Foods, Inc. is a producer and distributor of a complete line of real Smoke-Baked(TM) foods that are prepared authentically using a unique wood-burning oven system, and sold under the brand name of Smoky Market®. 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 national brand distribution for its smoked foods through multiple channels of marketing that include retail distribution to consumers via on-line ordering from the Internet and point-of-sale display merchandising in supermarkets, and through development of a chain of BarBQ Diner modular restaurants, self-contained modular kitchens and mobile restaurants that do not cook raw food on site.
SMOKY MARKET FOODS, INC.Investor RelationsP.O. Box 2864Aptos, CA 95001buysmoked@smokymarket.com
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.
Source: Smoky Market Foods, Inc.
