Sepp's Gourmet Foods Ltd.

Sepp's Gourmet Foods Ltd.

June 15, 2005 16:06 ET

Sepp's CDN $2 Million Convertible Debenture Financing Closes

SURREY, BRITISH COLUMBIA--(CCNMatthews - June 15, 2005) - Sepp's Gourmet Foods Ltd. (TSX:SGO) ("Sepp's" or the "Company") announces that the previously announced non brokered private placement of secured convertible debentures for total proceeds of $2,000,000 has closed.

The debentures will mature on June 15, 2010 and pay 9% interest per annum, payable quarterly. Each $0.25 of face value is convertible into one common share of Sepp's at any time while the debentures remain outstanding. The debentures may be redeemed by Sepp's at any time after May 31, 2008, so long as the market price of Sepp's common shares is not less than $0.50 in the twenty trading days prior to redemption.

The debentures will be secured by a floating charge on all of Sepp's assets that is subordinate to existing security and subordinate to future security given in connection with purchases of property, plant and equipment or in connection with line of credit financing.

The proceeds of this financing will be used to purchase food manufacturing equipment and general working capital purposes.

Sepp's Gourmet Foods ( is a producer and marketer of specialty prepared foods in North and South America, and Southeast Asia. Sepp's is a publicly traded company listed on the Toronto Stock Exchange under the symbol SGO.

The Toronto Stock Exchange has not reviewed nor has accepted the responsibility for the accuracy and adequacy of this news release.

Contact Information

  • Sepp's Gourmet Foods Ltd.
    Tom Poole
    President and CEO
    (604) 535-5457
    Sepp's Gourmet Foods Ltd.
    Jim Pratt
    Chief Financial Officer
    (604) 574-2166