Planet Organic Health Corp.
TSX VENTURE : POH

Planet Organic Health Corp.

November 23, 2009 14:30 ET

Planet Organic Health Corp.: Corporate Update

 EDMONTON, ALBERTA--(Marketwire - Nov. 23, 2009) - Planet Organic Health Corp (TSX VENTURE:POH), Mr. Darren Krissie, Executive Vice President of Planet Organic Health Corp. (the "Corporation"), announces the board of directors is continuing to review all strategic alternatives for optimizing shareholder value, as previously announced via Stockwatch, by reducing corporate debt and focusing fiscal resources on the most profitable operating segments of its business. In keeping with these objectives, the board of directors has undertaken a reorganization of the Planet Organic Market division ("POM") by downsizing its senior management. Effective immediately, Mark Craft has been released as President of the POM division and Diane Shaskin has been released as Vice President of Marketing and Advertising of POM. The vacancies resulting from their departure will be filled from current management within the POM division who will report directly to the Office of the CEO. Management and the board of directors express their appreciation to Mr. Craft and Ms. Shaskin for their commitment to the Corporation and wish them well in their future endeavors. Mr. Craft will remain on the Board of Directors of the company.

Additionally, based on a review of POM's operations, the board has decided to close its Bayview retail location in the Greater Toronto Area and has received an offer to purchase the company's natural health outlets which operate under the Sangster's Health Centre banner. The closure of the Bayview location and sale of underperforming divisions will enable the Corporation to redeploy capital to it's most profitable divisions, being POM and Mrs. Greens, and reduce corporate debt.

Shareholders are reminded that the Corporation's 60 day forbearance period expires on November 30, 2009 and the lenders have the legal right to demand repayment of all indebtedness and enforce their security over all of the Corporation's assets anytime thereafter if the Corporation fails to renegotiate the terms of the loans or arrange financing from other sources to meet its debt obligations to the lenders. The Corporation is reviewing all financing options, including the sale of additional non-core assets in order to reduce its aggregate debt load, which is currently approximately $39.3 million. The company also confirms that it is current on all debt, interest and vendor payables with sufficient current cash flow to maintain all current obligations.

ABOUT PLANET ORGANIC

Planet Organic Health Corp. (TSX VENTURE: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.

Forward-Looking Statements

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.

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.

Contact Information

  • Planet Organic Health Corp.
    Darren Krissie
    Executive VP, Business Development
    (780) 719-4667