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Microcap & Penny Stocks : Synergy Brands-SYBR (was KRAN) -- Ignore unavailable to you. Want to Upgrade?

To: hoopsville who wrote (578)	11/8/1997 12:13:00 PM
From: Tharos	Read Replies (1) \| Respond to of 1026

Don't want to rain on the parade, but (from the report) ----[my notes] The company's revenue base has been slowly recovering from losses of 1996. In order for the company to increase sales, it must reestablish it's relationships with the major grocery manufactures. The company is vigorously attempting to reestablish these ties as well as develop new one. Failure to re-establish these ties worked would have an adverse effect on the company. -----[Krantor is in a highly competitive business environent] The Company does not have sufficient working capital to fund its continuing operations. It requires additional financing to expand and satisfy its liabilities related to discontinued operations due to it's contingencies in IFD. The Company plans on expanding its core grocery and frozen seafood market through its distribution agreement. Krantor believes that by discontinuing IFD's operation it should enable it to support the capital requirements of its continuing operations. However, the Company believes it will need additional financing in the form of subordinated debt or equity to finance its expansion plans. -----[strong potential for share dillution] 1. CASH FLOW. The Company has experienced cash shortages which continue to adversely affect its business. See "Liquidity and Capital Resources". The Company requires additional working capital in order to maintain and expand its business. Failure to raise additional cash will have an adverse effect on the company. 7. LITIGATION The Company is named as defendant in various lawsuits arising from the liquidation of IFD. While it is not reasonably possible to estimate the amount of losses in excess of amounts accrued at September 30, 1997, if any, that may arise out of such litigation, management believes the outcome may have a material effect on the operations of the Company. ----[operational losses may be totally absorbed; however, final results of litigation are still an unknown] The Company has negotiated a settlement agreement with Proctor & Gamble Distributor Company in connection with disputes relating to promotional rebates that are due the Company. Failure to honor the terms of the settlement agreement may have a material adverse effect on the company's business. Two former officer's of IFD were awarded through arbitration $467,000 under disputed employment contracts. The award has been converted to a judgment against Krantor and Affiliated Island Grocers DBA Island Frozen & Dairy. (Collectively (AIG.) The company settled all actions relating to this case for $300,000 in common stock on November 6, 1997. Failure to honor the terms of the settlement will have an adverse effect on the company.