DNGO good news out.04.(COMTEX) B: D'Angelo Closes Major Re-Financing Deal Amidst Surge in New Bu
iness Contracts
B: D'Angelo Closes Major Re-Financing Deal Amidst Surge in New Business Contract
BRAMPTON, ONTARIO, Jul 8, 2003 (CCNMatthews via COMTEX) -- D'Angelo Brands,
Inc., (OTCBB:DNGO) (the "Company"), is pleased to announce completion of a major
financial re-structuring to take advantage of new business contracts finalized
for both its Mississauga and Tiverton plants.
Under the terms of the new financing all the Company's current long term debt,
including mortgage financing, will be replaced with new funding at very
competitive interest rates to capitalize on the historically low finance rates
currently available. "This is a major development for our Company," said
Chairman, Frank D'Angelo. "It gives us the long term financial stability to
focus on developing and growing the business and will result in a substantial
interest cost saving to the Company."
In addition, $1.5 million Canadian of new working capital has been negotiated -
also at current, competitive market rates - to facilitate new co-packing
contracts and D'Angelo brand activity, as detailed below.
At the Company's Mississauga plant, a pivotal new 5 million bottle contract
begins production this week for a household-name, multinational beverage
company. This contract capitalizes on D'Angelo specialized labelling know-how
and, following this substantial test order, is expected to lead to larger,
continuous contracts with this blue-chip customer.
The Arizona brand of iced teas and herbal drinks continues to be a key customer
for D'Angelo Brands and, in recognition of performance to date, the Company has
been nominated as exclusive North American co-packer for a new Arizona brand of
vitaminized water. The contract is expected to run to 24 million bottles in the
launch phase.
At the Company's Tiverton processing plant, contracts are being finalized with
two multinational companies for the production of bulk single-strength juices
and concentrates to meet these companies' high-volume branded needs in the
Canadian market.
"Aside from the substantial profit contribution from the processing contracts
themselves, these partnerships will give us substantial buying power with fruit
growers and allow us to tie up ample supply at very competitive prices," Frank
D'Angelo said. "With this buying leverage, I am confident that our own D'Angelo
brand of pure apple juice, in the 48 oz PET bottle, can quickly return to its
rightful place as the number one brand in the Ontario market."
Plans are also underway at Tiverton for the opening of the Company's on-site
beer store which will provide the initial test market for three beer
formulations to be produced at Tiverton's state-of-the-art brewing "plant within
a plant". Starting this fall, the Company plans an extensive trial phase for its
new beer brands at the retail and wholesale level, prior to a major
province-wide marketing launch in the spring of 2004.
This fall will also signal a landmark event in the D'Angelo branded juice
business. Research and development work has been underway for some years into
the production of a creamy-textured beverage, with year-round appeal and strong
health connotations.
This innovative, all-season drink made with real juice and incorporating a
high-protein content, will be launched under the PULP FUSION brand name in seven
original flavours - including apple varieties, cranberry, blueberry and orange.
The brand will utilize proprietary formulations and leading-edge labelling and
package technology. "With the kind of marketing support planned for the brand
launch, I believe we will have a 60 million bottle volume business within the
first year," said Frank D'Angelo.
D'Angelo Brands, Inc (OTCBB:DNGO) and its subsidiary D'Angelo Brands Ltd. and
its predecessor group of companies have experienced over 20 years of successful
operations within the Canadian Food industry. The Company markets beverages
under the D'Angelo name. They also produce and co-pack national and
international recognized brand beverages.
This statement includes projections of future results and "forward-looking
statements" as that term is defined in Section 27A of the Securities Act of 1933
as amended (the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934 as amended (the "Exchange Act"). All statements that are included in
this release other than statements of historical fact, are forward-looking
statements. Although management believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to have been correct. Important factors that could
cause actual results to differ materially from the expectations are disclosed in
this statement including, without limitation, in conjunction with these
forward-looking statements included in this statement.
CONTACT: D'Angelo Brands, Inc.
Frank D'Angelo
(905) 794-0335
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INDUSTRY KEYWORD: FDR - Food Retailers & Wholesalers
SUBJECT CODE: NWS - SPECIAL NEWS EVENTS
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