Natural Harmony Foods Announces Material Changes and Company Outlook
July 13 2009 - 9:23AM
Marketwired
Natural Harmony Foods, Inc. (PINKSHEETS: NHYF) announced today
material changes to the operations of the Company and hopeful
outlook for 2009-2010.
Sales and Distribution. Sales of the Company's SoLean products
have declined steadily for the past year due to economic conditions
and lack of marketing dollars. As a result, the Company failed to
make certain "slotting" payments to several of its retailers.
Harris Teeter, one of the Company's accounts, recently notified the
Company that it had removed the SoLean products from its shelves
due to the late payment issue, however, NOT because of lack of
product movement. As such, they remain open to a new relationship
with the Company in the near future, subject to further
negotiations, including a new marketing plan to increase consumer
awareness and sales and proof of adequate financing to maintain the
program. The Company continues to preserve its network of other
distributors and retailers through the daily support provided by
its manufacturing partner.
Financial Condition. For the past several years, the Company has
experienced significant cash flow issues due to lack of investment
capital and reduced margins from increased cost of goods and
distribution. In addition, certain creditors have enforced legal
claims against the Company impeding its ability to operate without
limitations. Furthermore, the Company has been unable to complete
its quarterly financials for Q-4 2008, and Q-1 and Q-2 for 2009,
respectively, due to lack of cash flow, resulting in a "down grade"
by Pink Sheets. Despite the negative situation, some key creditors
have come forth with a "work out" proposal and have offered to
convert past due invoices owed by the Company into Company Stock.
As such, the Company has begun to negotiate a reduction of all of
its outstanding debt with similar stock settlements. Unless the
Company is able to reduce all of its outstanding debt and further
obtain additional working capital investments, then the Company may
be forced to cease operations.
Change of Operational Management. Since inception nearly 9 years
ago, Sam Dewar has not only been one of the co-founders, but also
CEO and President of the Company. Mr. Dewar has been instrumental
in the development of product recipes, packaging, sales and
distribution of all the SoLean products to date. Due to
unanticipated personal circumstances, Mr. Dewar has tendered his
resignation as an officer and director of the Company, effective on
July 10, 2009. The Board of Directors will hold a special board
meeting this week to appoint Daniel A. Carr, also a board member,
as the "interim" CEO and President of the Company until a permanent
replacement can be named and also appoint Danny Pate to replace Mr.
Dewar as a member of the Company's Board of Directors. Mr. Dewar
has offered to provide "part-time" consultation to the Company as
needed.
Reorganization and Financing. The Company's outlook still
remains positive despite the recent material changes and
unattractive financial condition. However, the Company requires a
reorganizational plan, including the reduction of certain
operational costs and the elimination of outstanding financial
obligations. Furthermore, the Company requires additional working
capital to meet the requirements of its current sales and
distribution network. As such, the Company and members of its Board
of Directors have been in discussions with various consultants,
advisors and investors to review potential financing options for
the Company. The Company plans to make an announcement within the
coming weeks pertaining to financing options available to the
Company. If the Company is able to continue to make "work out"
arrangements with all of its creditors, it may be able to attract
new investments into the Company to provide for a new corporate
foundation to rebuild the sales and distribution network and uphold
the Company's product brand.
About Natural Harmony Foods, Inc.
Natural Harmony Foods, Inc. (PINKSHEETS: NHYF) is an
independent, new food company dedicated to producing healthful,
flavorful foods that fit the lifestyles of individuals looking to
make better, health conscious diet choices without sacrificing
taste. We have combined the taste and nutrition of beef and pork
with the health benefits of soy in our SoLean� brand foods. SoLean�
Flame Broiled Beef Patties, SoLean� Fully Cooked Pork Patties,
SoLean� Cheeseburgers, and SoLean� Sausage Egg Muffin Sandwiches
are 95% fat-free, high protein blends of lean ground meat and
heart-healthy soy protein.
Safe Harbor Statement Under The Private Securities Litigation
Reform Act Of 1995:
The Private Securities Litigation Reform Act of 1995 (the
"Reform Act") provides a "safe harbor" for forward-looking
statements to encourage companies to provide prospective
information, as long as those statements are identified as
forward-looking and are accompanied by cautionary statements
identifying important factors that could cause actual results to
differ materially from those discussed in the forward-looking
statements. Natural Harmony Foods, Inc. desires to take advantage
of the safe harbor provisions of the Reform Act. All future written
and oral forward-looking statements attributable to the Company or
any person acting on its behalf are expressly qualified in their
entirety by the cautionary statements contained or referred to
above. New risks and uncertainties arise from time to time, and it
is impossible for the Company to predict these events or how they
may affect the Company. We assume no obligation to update any
forward-looking statements as a result of new information, future
events or developments, except as required by federal securities
laws. In addition, it is our policy generally not to make any
specific projections as to future earnings, and we do not endorse
any projections regarding future performance that may be made by
third parties.
Natural Harmony Foods, Inc. is traded on the OTC Exchange (Pink
Sheets) under the symbol NHYF. More information is located at the
website -- www.naturalharmonyfoods.com.
Contact: Daniel A. Carr President Natural Harmony Foods, Inc.
2881 East Oakland Park Blvd. Ft. Lauderdale, FL 33306 (954)
315-1760 naturalharmonyfoods@gmail.com
Natural Harmony Foods (PK) (USOTC:NHYF)
Historical Stock Chart
From Dec 2024 to Jan 2025
Natural Harmony Foods (PK) (USOTC:NHYF)
Historical Stock Chart
From Jan 2024 to Jan 2025