New York – American Home Food Products, currently doing business as Artisanal
Premium Cheese, today announced the closing of a $2.5 million financing. The
terms of the financing include a three year senior loan with an interest rate of
8% to be paid quarterly, as well as 9.3 million shares of common stock.
As part of the conditions of the financing, the Company has agreed to the
cessation of future preferred dividends with the goal of simplifying its capital
structure and eliminating future dilution.
The company intends to use the financing to repay existing debt and obligations
including the payoff of its $300,000 loan from Summit Financial. The balance of
the capital will be used for working capital to execute the company’s retail
roll-out.
Daniel W. Dowe, President and Chief Executive Officer of Artisanal commented,
“Given the tight credit market, we are pleased to secure this capital at fair
terms to shareholders. It will immediately impact our operating performance by
lowering our inventory costs and increasing our overall inventory to best
fulfill customer demand. We missed a lot of selling opportunities in our
foodservice and online businesses in 2009 due to a shortage of inventory. This
new funding will remedy this problem and help us execute on our retail store
growth strategy with major retailers in the Northeast. Our expansion into the
retail space is a natural extension of our presence in the highest segment of
the restaurant and hotel industry, and provides our loyal customer base the
opportunity to replicate fine dining experiences at home.”
About Artisanal Premium Cheese
In August 2007 American Home Food Products, Inc. acquired 100% of the ownership
interests in Artisanal Premium Cheese. The Company operates in the specialty
cheese market in the United States. The company markets and distributes a line
of specialty, artisanal and farmstead cheese products, as well as other related
specialty food products under its own brand to food wholesalers and retailers,
as well as directly to consumers through its catalogue and Web site,
artisanalcheese.com. American Home Food Products, Inc. is based in New York, New
York.
Safe Harbor Statement:
Forward-looking statements made in this press release are made pursuant to the
“safe harbor” provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on current management expectations
that involve risks and uncertainties that may result in such expectations not
being realized. Potential risks and uncertainties include, but are not limited
to, the risks described in Company filings made with the Securities and Exchange
Commission.
Source:
Artisanal Premium Cheese
