Innovative Food Holdings Announces Retirement of Certain Notes at a Discount
NAPLES, Fla., June 24, 2011 /PRNewswire/ -- Innovative Food Holdings, Inc. (OTCBB: IVFH), announced today that it has reached agreements with several of its noteholders to settle their notes in full.
A total of 13 notes, with an aggregate book value of principal and accumulated interest, of over $550,000 were settled in full through the payment of approximately $190,000 in cash and the issuance, or commitment to issue, of approximately 34 million shares of common stock. The issuance (or commitment to issue) shares resulted from noteholders converting portions of their notes into shares in prices ranging from $0.005 to $0.025 per share, depending upon the terms of the notes.
The terms of the settlements varied based upon the different groups of unsecured noteholders, and involved the settlement of debt and interest at various discounts to book value of principal and interest. In addition, as part of the settlements, Joel Gold a member of the board, agreed to convert a substantial portion of his notes into approximately 21 million shares of the company's common stock and Michael Ferrone, also a board member, agreed to convert a portion of his notes into approximately seven million shares of common stock.
Commenting on the agreement, Innovative Food Holdings' CEO, Sam Klepfish, stated, "We had been in ongoing negotiations with various groups of unsecured noteholders for more than six months with respect to settling their notes and we reached agreements which we believe are beneficial to the company. We are extremely pleased that these debt settlements allowed the company to retire debt at significant discounts, reduced potential dilution to our shareholders and reduced the number of individual noteholders, further streamlining and simplifying our balance sheet .
Mr. Klepfish continued, "This transaction received the required consent from our secured noteholders and we view this consent as an additional vote of confidence and a long term view of shareholder value by our largest investors. Finally, management believes that these agreements further improve the company's capital structure, balance sheet, and the ability to explore additional general corporate opportunities, with a goal towards building shareholder value."
About Innovative Food Holdings
Innovative Food Holdings, Inc., through its wholly owned subsidiaries, is in the business of marketing and selling high quality gourmet food and products.
This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the "Company") that are based on the current beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as should, could, anticipate, believe, intend, plan, might, potentially or expect. The Company does not intend to update these forward-looking statements.
Contact:
Innovative Food Holdings, Inc.
Sam Klepfish
(239) 449-3235
[email protected]
Innovative Food Holdings, Inc.
[email protected]
SOURCE Innovative Food Holdings, Inc.
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