Sepp's Gourmet Foods Ltd.

Sepp's Gourmet Foods Ltd.

August 22, 2007 18:01 ET

Sepp's Corporate Update

DELTA, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2007) - Sepp's Gourmet Foods Ltd. (the "Company") (TSX:SGO) announces that two shareholders of the Company have agreed to provide the Company with a subordinated, revolving loan totalling $500,000. The loan bears interest at 16%, is repayable by November 10, 2007 with options to renew the agreement for additional three-month terms at the lender's option. Interest is payable at the end of the term. The loan ranks behind other previously arranged debt financing. As well as the shareholder loan, certain directors and management have exercised a total of 1,899,000 options at an exercise price of $0.15. The incoming funds will be used for general working capital purposes.

As per the July 26, 2007 press release announcing that the going private transaction has been discontinued, the Company is reviewing strategic alternatives to maximize shareholder value.

Sepp's Gourmet Foods Ltd. is a producer and marketer of specialty prepared foods for the retail grocery and food service sectors in North and South America, and Asia. Sepp's is a publicly traded company traded on the TSX under the symbol SGO.

This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Contact Information

  • Sepp's Gourmet Foods Ltd.
    Tom Poole
    (604) 524-2540 ext 230
    Sepp's Gourmet Foods Ltd.
    Jim Pratt
    Chief Financial Officer
    (604) 524-2540 ext 220