Item 8.01. Other Events. TEXT
Indeed good news, I bot some. Chances are they have a deal.
As previously announced on November 12, 2015, we have been working to implement a spinoff of our wholly owned subsidiary, The Fresh Diet, Inc. Subsequent to the announcement regarding the spinoff, discussions were initiated by several potentially interested parties with respect to acquiring our wholly-owned subsidiary, The Fresh Diet, Inc.
After evaluating the various offers and weighing them against the spinoff and other options available to The Fresh Diet, we determined that one of the offers was most likely to maximize value for shareholders. Accordingly, on February 9, 2016, we entered into a letter of intent to sell a controlling interest in The Fresh Diet. The terms of the letter of intent contemplate the closing of the transaction within 21 days and, upon closing of the transaction, Innovative Food Holdings will own a non-controlling interest in the outstanding shares of The Fresh Diet. Accordingly, upon closing, the financial statements of The Fresh Diet will be deconsolidated with Innovative Food Holdings’ financial statements and our equity interest in The Fresh Diet will be carried as an asset on Innovative Food Holdings’ balance sheet.
We can give no assurance of any kind that the transaction will be completed. At this time, we no longer intend to spin off The Fresh Diet as we pursue this transaction.
