Failed Promise #1 What happened to the share repurchase? The hype started with this headline release:
"Nate's Food Co. (OTCPK:NHMD) announces a share repurchase program. Under the program, the company will repurchase up to 22,797,000 shares, representing 31% of its outstanding common stock. Shares repurchased will be cancelled. The shares are to be repurchased are from affiliates of the company that acquired company's shares prior to the reverse merger. The Board of Directors of Nate's Food Co. has authorized a buyback plan on in December 2014. In December 2014, the company initiated a Negotiated Buyback. The final agreement is expected to be finalized and executed shortly. On March 5, 2015, the company concluded the Negotiated Buyback."
And ended with a footnote in an 8-K:
"In December 2014, the Company agreed to buy back approximately 22,797,000 shares of Common Stock. With the intent that the shares would be cancelled. The majority of terms had been agreed to including purchase price and term of payment. However, the Company requested that the repurchase be agreed to by the common shareholders at a shareholder meeting. The shares that were to be repurchased are from affiliates of the Company that acquired their shares prior to the reverse merger with Nate’s Food. The Company believes that since the shareholders are deemed affiliates that the transaction should be approved by a majority of the common shareholders. However, the affiliate shareholders of the shares to be repurchased objected to the inclusion of shareholder approval as a condition of the repurchase. As such, the agreement to repurchase the affiliate shares has been terminated."
Failed Promise #2: Where are the dividends? It started with this hype press release:
"December 04, 2014 09:00 AM Eastern Standard Time
LOS ANGELES--(BUSINESS WIRE)--Nate’s Food Co. (OTC:NHMD) announced today that it has established a dividend policy for its common stock shareholders. The Company is finalizing its forecasts, pricing and cost of goods. As part of this process, the Company has decided to establish a quarterly dividend of $0.025 - $0.10 per can of product sold. Additionally, the Company was able to reduce its license agreement from 7.5% to 3%."
And ended with the latest 10Q showing no dividends paid to shareholders for product sold.
Failed Promise #3: Where are Nate's Factories? It started with this hype press release:
"February 05, 2015 08:00 AM Eastern Standard Time
LOS ANGELES--(BUSINESS WIRE)--Nate’s Food Co. (NHMD) announced today that the Company has agreed to acquire a new rotary piston filling can line. The new line will be capable of producing between 8,000,000 and 10,000,000 cans per year and will be completely installed at the Company’s factory in Fairfield, California within the next 10-12 weeks. The Company has begun moving its production from its Los Angeles co-packer to its factory line in Fairfield. The initial components are expected to be installed in the next 3-4 weeks with the remaining components added on to increase the number of cans produced per minute. As a result, the Company will be able to supply product for the expected distribution agreements without any delays."
And ended with no plant or equipment purchased or owned listed in the latest 10-Q; even though, the press release reads "The company has agreed to acquire," and "will be completely installed at the Company's factory ...," which of course isn't true.
Eventually, the truth catches up with all of the hype.
AI
