Smoky Market Foods, Inc. (fka SMKY)

[Huggy Bear]

Farrago, your pragmatic logic is appreciated as always even if we do not agree on fundamental conclusions.

Being a shareholder with an active rapport with Eddie, do you know if he has tried financing with other convertible debt operations such as Tangiers? Now they arent people you want to see involved with your stock either but Asher carries the stigma of the worst toxic financier out there for reason, their terms are the most unfavorable IMO. Tangiers are, ummm, better.

- What are the other options? Well, myself and probably other longs, believe that Eddie has had other financing options available. If that's the case, why hasn't he secured financing already? Well, we believe the offers on the table were at horrible terms. Terms that would truly wreck the value of shareholders stock in a couple of years.

The offers on the table in the current terms are on horrible terms and will surely wreck the stock in the next year if this "real" financing is not secured.

It was announced about a month ago via PR that "financing was complete" to pursue the next step in the business plan. Since then, nothing concrete produced. I find this is in line with the history of promising real fundamental positives with nothing occuring of the like.

It has been said here that Asher financing is not really "toxic" because the share price has actually increased significantly off the last Asher conversion inspired bottom. The daily stock price of any company is not indicative of the fundamental worth whatsoever, everyone knows (I hope) that the stock price here is being held up by positive sentiment for positive future developments, because once again nothing fundamentally positive for the company has actually occured to date.

Nonetheless I understand your position on the "bridge" financing period with Asher in the present and your analogies make valid points, but only if this Asher financing is truly very temporary and I hope you can agree with that being what I find to be the pragmatic and logical and non-pump in nature long on this board.

I have a simple question for you regarding this point:

4. Revenues. Revenues are the golden ticket. We haven't seen any yet. We know it's going to take a while to restart the ovens and start to move products in these new distribution lines, but I think there's good reason to believe that by the end of the year, we will probably see very positive revenues

As a businessman I dont see how the proposed 3.5M for expanding the new distribution lines is going to make any positive impact on the bottom line. Isnt the current model already fundamentally broken because the end product is not cost-effective? I thought everyone pretty much agreed that from the trial run with Sysco of Iowa. I fail to see how expanding a non-profitable business model equates into profits. Hence the need for the 25-40M for acqusition of owned means of production to bring down product cost.

I welcome your opinion on how 3.5M to expand distribution is going to make SMKY profitable.