SOURCE: Smoky Market Foods, Inc.
WEBSTER CITY, IA--(Marketwire - Oct 26, 2012) - Smoky Market Foods, Inc. (OTCQB: SMKY) released today an updated report on the status of its operations since announcing the recruitment of two retail executives in early September. The released report highlighted certain qualifications to the Company's plan for financing and included other pertinent information relative to product distribution and capital structure in anticipation of its forthcoming third quarter 10Q filing. Said Eddie Feintech, Chairman, President/CEO of the Company, "We have a broad and growing shareholder base, and many new investor eyes viewing SMKY so updated, accurate news on our status is important to provide."
Upon releasing the update report, Mr. Feintech stated that "the company's management team had been focused on one specific objective since our September news release, which was to position SMKY to receive qualified financing by establishing confirmed channels for distribution and providing such warranties to investors. That objective has been achieved and continues to be enhanced while we pursue financing, and now includes some of the largest grocery chains in the country to stock SMKY product in 2013. We have a compelling story to investors who know the food business and we've mitigated risk."
Mr. Feintech continued with statements relative to updated information released in the report:
"SMKY's unique product quality, the mainstream market demand for such cuisine, and the expert brand management talent of our new retail execs are believed to be foregone conclusions, so SMKY viability becomes merely a function of adequate capital. However, such capital must be received in a manner compatible with prudent financial structuring to avoid future cash flow deficiency from debt repayment and serious risk to shareholders. There is definitely traditional interest-bearing, convertible debt financing available to us at two and three-year terms from institutional funding, which is high risk and very dilutive. Consequently, we have qualified our financing plan to accept only equity capital to fund our initial market launch either from our Preferred Stock offering or bulk common stock purchase, both of which investment vehicles are structured to result in Win-Win financing for investors and existing shareholders. While the institutional market offers us the typical shorter term PIPE debt financing as described, our branding and franchise story is enticing to private wealth investors that seek high return equity play. We'll use qualified convertible and secured debt facilities as an enhancement to equity capital and it's very well worth the wait to do this right.
"Interim financing remains a critical requirement and our very basic expenses to cover filings and certain minimal operating and administrative costs continue to be defrayed through occasional sales of restricted stock and small convertible loans from time to time. To date, SMKY's free-trading float is about 48 million shares, with about 22 million of such shares remaining in certificate form and not trading in the market. Total outstanding shares to date are about 113 million. Further, it is my belief that a substantial number of the share float in the market is held by shareholders seeking relatively long-term gain so the conversion of short term debt offers a manner to increase float for future liquidity need from good and consistent daily volume. It's important to remember, SMKY management and affiliates hold over 40% of equity so all form of financing is closely watched and evaluated for prudence."
Mr. Feintech concluded the update release by stating, "We're now showing large private investors that their money will put SMKY product into supermarkets and club stores, and that total financing which includes acquisition capital should produce rapidly scalable revenue that gets SMKY profitable and self-capitalizing. It's not rocket science, just an incredibly good and healthful product that fulfills a niche market demand, and can generate substantial market equity appreciation as a result of success. I believe we'll receive all the financing we require and it's looking good for yet this year."
ABOUT SMOKY MARKET FOODS
Smoky Market Foods, Inc. uses proprietary, custom-engineered, USDA-approved wood-burning oven technology to produce a complete line of fully-cooked Smoke-Baked™ meat and fish, and special recipe dishes. From a 15-acre food production campus located in central Iowa, the Company produces its smoked foods for multiple channels of foodservice and retail grocery distribution principally under the Smoky Market brand. Additionally, the Company intends to produce certified kosher smoked foods and to distribute this line of products under the "Smoky Kosher" brand through the same marketing channels. Using its mass production technique, the Company plans to develop a national chain of fast-casual barbecue restaurants under the name "BarBQ Diner" that would operate without having to handle and cook raw product on site.
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.