REPOST: Smoky Market Foods Releases Activity Timetable, Further Guidance on Operations
WEBSTER CITY, IA--(Marketwired - May 7, 2014) - Smoky Market Foods, Inc. (OTC Pink: SMKY) (PINKSHEETS: SMKY) released more information today on its timetable of specific administrative and operational activities currently being undertaken in its process to manicure its corporate profile. "My management and affiliate team is highly motivated and razor-focused. I've worked a long time to secure professional relationships that produce and we now have great talent and financial reach in play," said Eddie Feintech, CEO of the Smoky Market Foods enterprise.
The Company's day-to-day administrative activities are focused upon completing internal financial reports so that audits for years 2012 and 2013 can be initiated as required to bring its SEC filings current. The Company intends to engage its auditors in the next two weeks and then be in position for legal work to initiate a series of filings by end of June that will bring the Company current by July 15, 2014. Said Mr. Feintech, "SMKY is emerging like a colorful flower from the rubble of corporate learning-curve operations, but beneath is the stem of a large fruit tree." The Company intends to move itself up to the OTCQB or QX tier immediately upon making its last SEC filing to be current, at which time it will also be in position to tap is recently secured financing resource to begin making strategic food company acquisitions.
"It's important for investors and shareholders to grasp that we've been endeavoring for 18 months to work through our financial transitioning process quite literally without currency, as our remaining available capital stock has been held in reserve to cover shares issuable by conversion of outstanding convertible notes," Mr. Feintech said. In connection with the Company's bridge money financing and the commitment to such investors, its total payoff of certain outstanding convertible notes must be done before the last filing is made. The Company will continue to accept bridge money financing while defraying its administrative expenses and notes repayment, and its timely receipt of such funds during the coming weeks is a requirement to execute on its activities timetable. "I love the financial support we've been getting from new investors and existing shareholders. They see what is real and what is happening with their money, and they deserve the benefit," said Mr. Feintech.
The Company's operating overhead or burn-rate of bridge money is being kept to a minimum while its manicuring process is completed, which helps to mitigate investor risk and reduce dilution for this stage of critical money. Officers and senior management of the Company continue to provide financial support through greatly reduced paid compensations; its investment banking and operating affiliates are being compensated on the basis of performance, and its costs to launch into food production and distribution remain predominately variable as well. "I take this opportunity to clarify and dispel certain negative misinformation that has been generated in the past with respect to salary compensations supposedly paid to myself and other management, and our having sold substantial amounts of stock into the market," Mr. Feintech stated. "Clearly, any diligent review of the Company's cash flow statements that were contained within its financial filings through September 30, 2012 (our last filing date) along with a search of other filings, would have shown that i) there was less than $100,000 in total salaries paid by the Company since March 31, 2010, which has remained very near that amount to date, ii) that the increase in the Company's current debt for those periods was in large part the direct result of management's deferred compensation along with actual cash advances made by management that bootstrapped expenses, iii) that no amount of convertible debt was taken on directly to pay salary compensations, and iv) that from the absence of Form 4 filings there is no officer or director of the Company who has ever sold any stock," Mr. Feintech concluded.
The Company is also using bridge money to initiate production of product in early June to begin filling pipelines of distribution that include SYSCO-Iowa and the probable addition of larger SYSCO divisions in major cities around the Company's Iowa-based operations. Additionally, the Company will be adding regional specialty fish and meat distributors in markets it has targeted for brand support campaigning. "Our existing oven has a $1 million-plus monthly revenue capacity, which gets us nicely profitable and our intent is to book it quickly," Mr. Feintech stated. "We're tapping our affiliates' connections to sell this capacity and much more to restaurant chains and by container load to international market distributors," he said. The Company's Iowa processor has been gradually building additional processing and refrigeration capacity to meet its growing order demand, and is currently permitted by the USDA for export of value-added foods. "The stronger SMKY becomes in the coming months relative to maximized sales and income, the more favorable our financing terms will be in making our strategic food company acquisitions," said Mr. Feintech.
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