| News Release |
May 1, 2008 |
| Planet Organic Health Corp. |
(TSX Venture - POH) |
Planet Organic Rejects Equity Offering
10:48 EDT Thursday, May 01, 2008
TSX:V - POH
EDMONTON
,
May 1
/CNW/ - Planet Organic Health Corp, Canada's largest natural foods retailer, today announced it has decided to not proceed with its fully marketed offering of common shares, announced on
April 1, 2008
.
"Due to weak market conditions, the company believes that the offering will not be completed at a price that appropriately values the company's internal growth opportunities," said
Darren Krissie
, Planet's Vice President of Corporate Development and CFO. "Our company is doing well and will continue to grow."
Aside from the equity financing not proceeding, all previously announced expansion plans will continue in all of Planet's divisions,
Mr. Krissie
added.
The company has over
$2 million
in cash and significant availability under its existing credit lines and it has further free cash flow to enhance the business.
Because of organic growth in those divisions and acquisitions over the last seven years, Planet Organic has grown from one location doing $1.6 million per year in sales, to a corporation with 650 employees and annual revenues that will exceed
$100 million
by the end of fiscal 08 (June 30).
'Good Food, Good for You, Good for the Earth.' That's been Planet Organic's motto for the past 15 years. Planet Organic Markets sell only 100% certified organic produce, all-natural groceries, a healthy deli selection, organic meats, fair trade coffee and chocolates as well as all-natural supplements and personal-care products.
To find out more, please visit:
www.planetorganic.ca
About Planet Organic Health Corp.
Planet Organic Health Corp. (TSX-V: POH), is a natural products industry company, comprising manufacturing, distribution and retail. Planet is listed on the TSX Venture Exchange as a Tier One company. Planet operates eight natural food supermarkets throughout
Canada
under the Planet Organic Market banner and eleven natural food supermarkets in the U.S. under the Mrs Green's Natural Markets banner. The Company also operates 48 natural health outlets under the Sangster's Health Centre banner and eight natural health outlets under the Healthy's and Planet Organic Living and Healthy's banners. Another POHC company, Trophic
Canada
, is the country's leading manufacturer of natural supplements. The Company has a total of 64 stores throughout
Canada
and 11 in the U.S.
Forward-Looking Statements
Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Planet. Many of these statements can be identified by looking for words such as “believe”, “expects”, “expected”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues”, or similar words and include but are not limited to, statements regarding the accretive effects of the acquisition and the anticipated results and expected benefits of the acquisition upon closing thereof. Planet Organic believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Planet Organic’s continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Planet Organic’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Planet Organic. Any forward-looking statements are made as of the date hereof and Planet Organic does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise
For further information contact:
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |