Sepp's Gourmet Foods Ltd.

Sepp's Gourmet Foods Ltd.

October 16, 2006 12:35 ET

Sepp's Recent Events

SURREY, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Sepp's Gourmet Foods Ltd. (TSX:SGO) ("Sepp's" or the "Company") announces the following recent events:

- The closing of the previously announced joint venture with Advance Foods Company, Inc. The Company will be required to provide working capital and equipment to the joint venture. The joint venture has begun production of waffles for the US market;

- The Company will be relocating its British Columbia manufacturing facility to a new site in February 2007. The new site is located close to the existing plant and the Company expects to retain all its employees;

- A shareholder and insider of the Company has agreed to provide the Company with a standby line of credit for up to $500,000. The line of credit bears interest at 10.25%, is repayable by December 31, 2007 and is secured by a charge over the Company's assets, subordinated to all existing debt. Additionally, up to 476,190 share purchase warrants exercisable at a price of $0.35 will be issued to the shareholder as consideration for providing the line of credit. Funds from the line of credit will be used to fund the Company's capital requirements under the recently completed joint venture and for general working capital purposes.

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, Iceland, and Southeast 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.

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
    (604) 535-5457
    Sepp's Gourmet Foods Ltd.
    Jim Pratt
    Chief Financial Officer
    (604) 574-2166