SOURCE: Smoky Market Foods, Inc.

Smoky Market Foods, Inc.

April 28, 2014 11:25 ET

Smoky Market Foods Executing on Refined Plan

WEBSTER CITY, IA--(Marketwired - Apr 28, 2014) - Smoky Market Foods, Inc. (OTC PINK: SMKY) (PINKSHEETS: SMKY) announced today its guidance for implementation of a significantly refined financing and operating plan. This development has been accomplished through continued private financial support from Company officers and investors. "SMKY's story the past few years has admittedly been difficult for shareholders and investors to understand," said Eddie Feintech, Chairman, President and CEO. "It's been an enduring process to both get it right, and get it done fairly and equitably for existing shareholders," he continued.

The Company engaged a team of consulting affiliates to provide marketing and investment banking expertise and assistance to refine its financial marketing plan, and execute a focused strategy that leverages both its status as a reporting public company, and its capabilities to produce artisan quality, value-added smoked food for international distribution. Said Mr. Feintech, "We refined and focused our plan to achieve two objectives, and they brought forth the financing to execute." The Company will begin to produce product and fill specific pipelines of distribution to gain revenue traction, and simultaneously seek selected food companies that meet criteria as a strategic business to acquire.

To finance such acquisitions, the Company has signed two investment banking agreements with a leading New York-based investment bank to assist in placing its acquisition financing and to raise equity by public offering. The investment banking firm, founded in 1925 and one of the oldest in the United States, is a member of the New York Stock Exchange and a full-service broker-dealer employing over 500 people. The firm manages two Morningstar-rated mutual funds and has five offices throughout the country, with over 70 retail brokers, over 10 research analysts and a pair of institutional desks trading for 800 institutional clients throughout the world.

Under the first agreement, the Company has retained the investment banking firm as its exclusive placement agent and financial advisor in connection with acquisition financing of up to $30,000,000 in senior secured debt. The Company must meet various terms and conditions, which it believes are reasonable and attainable in due course of business of this type. "In tapping fully this facility of acquisition financing during 2014, with its unique program structure, our intent is to acquire up to $75M in strategic food sector revenue that also creates expanded channels of distribution -- and on an international scale -- for our smoked foods," Mr. Feintech said.

The second agreement is a $30,000,000 firm commitment to underwrite a public equity offering on a major exchange (AMEX or NASDAQ) represented by the investment banking firm. The planned public offering is subject to the Company's successful auditing and acquisition of its current target companies, and would pay off the Company's acquisition debt. Said Mr. Feintech, "We are very pleased to establish this relationship with such a prestigious New York Stock Exchange member firm, which confirms and validates our business plan. We expect the assistance of this well-established investment bank to accelerate our growth strategy through acquisitions and with their assistance, move us up to trade on the NASDAQ or AMEX. We are launching an aggressive search for strategic acquisitions, with our internal due diligence already focused on acquiring our Iowa processor and beginning on several other identified acquisition targets. We believe we can meet and satisfy the terms and conditions in both investment banking agreements, and execute upon our business model successfully."

Using proceeds received from bridge money investors, the Company's immediate and near-term actions are focused upon specific objectives that will manicure its corporate profile and include i) bringing its SEC filings current; ii) building sales revenue; iii) paying off outstanding convertible notes, and iv) negotiating to buy strategic food companies. "In our situation, tactical financial maneuvering that is prudent and preserves the integrity of common shareholders just takes time. We're clearing over 90% of our debt from the balance sheet and we've positioned ourselves with an element of control over certain of the events that we've committed to make happen," said Mr. Feintech. "I've got the right players fully engaged and aggressively motivated. Money and effective players make things happen," he said.


ABOUT SMOKY MARKET FOODS
Smoky Market Foods, Inc. is a producer and distributor of artisan-quality, Smoke-Baked™ foods that are prepared authentically using a unique wood-burning oven system, and sold under the brand names of Smoky Market® and Smoky Kosher. Because of its proprietary wood-burning oven technology, which burns freshly-cut hickory and apple timber to impart a genuine smoky flavor, the Company's Smoke-Baked meat and fish are truly prepared the old-fashioned way, without the use of any additives or chemical preservatives. This aspect of quality wholesomeness in prepared food processing is a market niche feature. Smoky Market Foods, Inc. intends to build international retail and foodservice channels of distribution for its smoked foods, and to accelerate its overall corporate revenue growth through making strategic food company acquisitions.

FORWARD-LOOKING STATEMENTS
Statements in this news release regarding future financial and operating results, future growth in research and development programs, potential applications of our technology, opportunities for the company and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: our limited operating history, need for future capital and need to enter into relationships with retailers for retail merchandising business, supply and distribution risks, risks inherent in the development and commercialization of potential products, protection of our intellectual property, and economic conditions generally. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in the company's periodic reports, including the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 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 statements if those beliefs, opinions, expectations, or other circumstances should change.

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