SOURCE: Smoky Market Foods, Inc.

October 31, 2007 09:30 ET

Smoky Market Foods Secures Up to a $10 Million Equity Line of Credit to Provide Capital for Growth

APTOS, CA--(Marketwire - October 31, 2007) - Smoky Market Foods, Inc. (OTCBB: SMKY) announced today that it has signed a $10 million Investment Agreement with Dutchess Private Equities Fund Ltd. to help provide expansion capital to the Company.

The Investment Agreement, which is in the form of an equity line of credit, provides the Company with the right to require Dutchess to purchase up to $10 million of the company's common stock at a seven percent discount to market in increments of up to $250,000 (or, if greater, 200% of the average daily trading volume of the common stock multiplied by a three-day average bid price). A condition to Dutchess's purchase obligation is that a registration statement registering the resale of the shares subject to any put be effective prior to the issuance of any put notice.

Edward Feintech, President and Chief Executive Officer of Smoky Market Foods, said, "We expect the Investment Agreement to give Smoky Market Foods the ability to finance the anticipated opening of several of our Smoky Market restaurant-stores and kiosks in 2008. We look forward to this relationship with Dutchess, which we believe will greatly augment our financing strategies. This agreement gives us some controls over the timing of the draw down of funds and the ability to take advantage of favorable market conditions."

Dutchess has many years of experience assisting publicly traded companies in all facets of their growth strategies by providing capital and progressive business solutions. Since 1996, Dutchess has transacted in excess of $1 billion in financing for publicly traded companies. "We believe our relationship with Dutchess will complement our financing goals and the furtherance of our business plan," said Mr. Feintech.

About Smoky Market Foods

Smoky Market Foods, Inc. is a development stage company that produces a complete line of fully cooked Smoke-Baked foods through a unique wood-burning oven system and intends to build a national chain of Smoky Market® restaurant-stores and self-contained kiosks that do not have to cook raw food on site. The company is also attempting to establish a strategic co-brand marketing relationship (store-within-a-store concept) with a national restaurant chain.

Forward-Looking Statements

This release may contain forward-looking statements as well as historical information. Forward-looking statements may involve risks, uncertainties and other factors that may cause the Smoky Market Foods' actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the following risks: that the Company's ability to issue puts under the line of credit may be delayed for a significant period of time because of a potential SEC review of the related registration statement and potential restrictions on the number of shares subject to the registration statement; that the existence of the equity line of credit and registration statement may have an adverse effect on the market for the Company's common stock (including the stock price) and interfere with the Company's ability to raise money through private placements and other channels; that because of limits on each put under the equity line of credit (and approximately seven trading-day minimum spacing being put notices), amounts raised under the Investment Agreement will be insufficient to fund the Company's expansion plans; that the Company's common stock is thinly traded and subject to manipulation and rapid changes in price based upon the selling and purchasing activities of even a single party; and that the Company may, or may not, be able to obtain the capital and other resources necessary to implement its business plan, expand revenues and achieve profitability in a highly competitive marketplace. In addition, other risks are identified in the company's most recent Quarterly Report on Form 10-Q filed with the SEC. Any forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.

Contact Information

  • Contact:

    Smoky Market Foods, Inc.
    Executive Office
    804 Estates Drive, Suite 100
    Aptos, CA 95003 USA
    (866) 851-7787
    www.smokymarket.com