Coastal Foods Inc. Announces Significant Debt Reduction and Association With Large Mid-Western Food Store Chain.Business Editors HOUSTON--(BUSINESS WIRE)--Feb. 9, 2000 Coastal Foods Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :XPIE) is a manufacturer of high quality, frozen pie dough products, various pastry products, and muffins. Mr. W. Cecil Ferguson, president/CEO of Coastal Foods Inc., announced that the company has successfully completed the restructuring of its bank debt from approximately $2,400,000 to $650,000 and the reduction of its account payable debt from approximately $2,300,000 to $1,900,000. Mr. Ferguson also announced that the company has entered into an association with a large mid-western food company to produce certain products. The first orders have already been shipped. The projected gross revenues from sales are anticipated to be approximately $2.5 million. The combination of the bank debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: and the product orders should assist Coastal Foods in its turnaround efforts. Mr. Ferguson stated that although the company still has significant challenges ahead in its turnaround efforts, he is pleased with the accomplishments made so far in trying to reach that goal. Mr. Ferguson also announced today that the company entered into an agreement with Wall Street Concepts Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control to assist the company in shareholder and public relation matters and in improving the company's visibility in the financial community. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made herein are based on current expectations of the company that involve a number of risks and uncertainties and should not be considered as guarantees of future performance. These statements are made under the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The factors that could cause actual results to differ materially include: interruptions or cancellations of the contract with the mid-western food company or other existing contracts, impact of competitive products and pricing, product demand and market acceptance risks, the presence of competitors with greater financial resources than the company, product development and commercialization's risks and an inability to deal with outstanding creditors, including judgment creditors, and to arrange additional debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . |
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