September 9th, 2010
Posted on 05. Mar, 2010 by PublicWire in Finance
3/5 (AHFP.OB) American Home Food Products Secures $2.5M Financing
(PublicWire) — American Home Food Products (OTCBB: AHFP), currently doing business as Artisanal Premium Cheese, Thursday announced the closing of a $2.5 million financing. The terms of the financing include a three year senior loan with an interest rate of 8% to be paid quarterly, as well as 9.3 million shares of common stock.
As part of the conditions of the financing, the Company has agreed to the cessation of future preferred dividends with the goal of simplifying its capital structure and eliminating future dilution.
The company intends to use the financing to repay existing debt and obligations including the payoff of its $300,000 loan from Summit Financial. The balance of the capital will be used for working capital to execute the company’s retail roll-out.
Daniel W. Dowe, President and Chief Executive Officer of Artisanal commented, “Given the tight credit market, we are pleased to secure this capital at fair terms to shareholders. It will immediately impact our operating performance by lowering our inventory costs and increasing our overall inventory to best fulfill customer demand. We missed a lot of selling opportunities in our foodservice and online businesses in 2009 due to a shortage of inventory. This new funding will remedy this problem and help us execute on our retail store growth strategy with major retailers in the Northeast. Our expansion into the retail space is a natural extension of our presence in the highest segment of the restaurant and hotel industry, and provides our loyal customer base the opportunity to replicate fine dining experiences at home.”
About Artisanal Premium Cheese
In August 2007 American Home Food Products, Inc. acquired 100% of the ownership interests in Artisanal Premium Cheese. The Company operates in the specialty cheese market in the United States. The company markets and distributes a line of specialty, artisanal and farmstead cheese products, as well as other related specialty food products under its own brand to food wholesalers and retailers, as well as directly to consumers through its catalogue and Web site, artisanalcheese.com. American Home Food Products, Inc. is based in New York, New York.
Safe Harbor Statement:
Forward-looking statements made in this press release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in Company filings made with the Securities and Exchange Commission.
