Here e-mail from CEO from April,1st 2007 .
Weekly Update
We are progressing with our specialty food product transaction. We are exchanging marked-up versions of contracts while simultaneously working on pulling the equity capital needed to close and recapitalizing our current balance sheet. All three segments are advancing and we are aiming for an April closing, but no assurances can be given as plenty of work lies ahead.
The company we would like to acquire has several fascinating growth opportunities as it is a high-end brand that is sold through E-commerce, a print catalog and into several hundred well-known restaurants. What's missing in its marketing plan are two major market segments -- foodservice: into premium hotels, caterers, private clubs, cruises, private and commercial (1st class) airplanes and many similar outlets where premium foods are served, even in a snack form, and retail: supermarkets like traditional premium grocers and mass merchandisers wanting high-end goods for upscale customers. This later category is $6 billion in sales and our targeted acquisition hasn't penetrated it yet. It's an opportunity for sure.
Our new management team has its sites on a grass roots marketing campaign starting in the Greater New York City region and moving into New England quickly. In addition to the above listed work we are doing to close the transaction, we are in early-stage talks with the best specialty food distributor serving the Greater New York City to Boston market on a co-distribution deal where they add our product line and we train its sales staff and customers. This would get us over 2,000 new customer contact points, 150 delivery trucks bearing our logo and delivering our goods and a partner we grow with in the foodservice sector. They could also assist us with the retail sector although we are prepared to move into this sector with our own management team in the 4th Quarter 2007. All this activity, if it gets the traction we are hoping for, will have a beneficial impact on our web-sales as consumers can buy direct from us as well, or send gifts outside our market.
Let's hope all this comes together in April.
Dan
