Central Canada Foods Corporation

November 03, 2006 13:25 ET

Change Management at Central Canada Foods

MISSISSAUGA, ONTARIO--(CCNMatthews - Nov. 3, 2006) - The Board of Directors of the Central Canada Foods Corporation (the "Company")(TSX VENTURE:CDF.A) approved the appointment of Mr. Zoran Konevic as the Company's new Chief Executive Officer. Mr. Michaels shall remain President of the Company and will work with Mr. Konevic to build the Company.

The Board of Directors also accepted the resignation of Kevin Sills as a Director of the Company in favour of Mr. Konevic.

Mr. Konevic has over 20 years experience in international trade, marketing, mergers and acquisitions including sourcing and supplying food products and other commodities to major department stores in Europe, Eastern Europe and North America.

Mr. Konevic said, "I am excited by Central Canada's prospects for growth, and I look forward to making a significant contribution to the Company and the creation of shareholder value with the entire management team".

In addition, the Company's wholly owned subsidiary Central Canada Foods Inc. ("CCFI") (with the approval of the outside directors of the Company) entered into an executive employment contract with George Michaels effective as of November 3, 2006. Under the terms of this contract, Mr. Michaels shall remain the President of CCFI.

In other news, George Michaels along with his wife, and two other independent members of his family have sold their interest in the Company to Zoran K Corporation, a private Ontario company controlled by Mr. Konevic.

Under the terms of the Share Purchase Agreement, Mr. Michaels and his family members have sold an aggregate of 10,005,333 Class A common shares, or approximately 52% of the issued and outstanding shares of the Company, to Zoran K Corporation. Mr. Michaels formerly controlled 9,300,000 of said shares and his wife controlled an additional 300,000. This sale constitutes a take-over bid exempt from the take-over bid rules set out in the securities legislation.

The shares were acquired at a purchase price of $0.23 per share pursuant to the terms of the share purchase agreement. As a material term of the transaction, the parties entered into a pledge agreement whereby the entire 10,005,333 shares have been pledged by Zoran K Corporation against all moneys owed by Zoran K Corporation to Mr. Michaels and his family members as set out in the pledge agreement.

About Central Canada Foods Corporation

Central Canada Foods Corporation (TSX VENTURE:CDF.A) is a federally inspected, HACCP approved, meat processing company that converts wholesale cuts or "primal meat cuts" and converts smaller cuts derived from the primal cuts or "sub primal meat cuts" into fresh-boxed and case ready products, including hams and boneless picnic loins, for shipment to its customers. The Company's products are marketed and sold to Canadian national and regional grocery chains, as well as in the Asian-Pacific market and other international markets.

This News Release may contain certain forward-looking statements, which statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "anticipate", "estimate", "predict", "plans", or "continues" or the negative thereof or any other variations thereon or comparable terminology referring to future events or results. Forward looking statements are statements about the future and are inherently uncertain, and the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including without limitation, the need for regulatory approval, marketing/manufacturing and partnership/strategic alliance risks, the effect of competition, uncertainty of the size and existence of a market opportunity for the Company's products, as well as a description of other risks and uncertainties affecting the Company and its business, as contained in news releases and filings with the Canadian Securities Regulatory Authorities, any of which could cause actual results to vary materially from current results or the Company's anticipated future results. 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 statement if those beliefs, opinions or expectations, or other circumstances should change.

The Toronto Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Contact Information

  • Central Canada Foods Corporation
    George Michaels
    (905) 272-3133
    Central Canada Foods Corporation
    Zoran Konevic
    (416) 820-3600