Business
Canyon Creek Food Company Ltd. Settles Debt
Canyon Creek Food Company Ltd. Settles Debt.
About this update from Canyon Creek Food Company Ltd.
[{"type":"text","content":"\n\n\n\n\nTSXV Symbol: CYF \n\nCALGARY, May 18 /CNW/ - Canyon Creek Food Company Ltd. (\"Canyon Creek\"),\nlisted on the TSX Venture Exchange Inc. under the trading symbol \"CYF\", is\npleased to announce that it is proposing to settle $3,150,000 of debt by the\nissuance of 10,500,000 common shares at a price of $0.30 per common share,\nsubject to the approval of the TSX Venture Exchange. The Corporation's debt\narises pursuant to promissory notes issued to Chemco Electrical Contractors\nLtd. (\"Chemco\") for the provision by Chemco of ongoing working capital over\nCanyon Creek's past 5 fiscal years, as detailed in the financial statements of\nthe Corporation throughout the period. The President, Chief Executive Officer\nand controlling shareholder of Chemco is Brian Halina, who is also the\nChairman of the board of directors of Canyon Creek. In addition to accepting\nthe shares as settlement for the debt, Chemco has agreed to forgive all of the\naccrued interest on the promissory notes in the approximate amount of\n$900,000. Assuming completion of the transaction, Canyon Creek will have\napproximately 33,316,519 common shares issued and outstanding with Chemco and\nMr. Halina owning, directly or indirectly, 17,242,186 common shares,\nrepresenting approximately 52% of the issued and outstanding shares of the\nCorporation. All of the shares issued to Chemco pursuant to this issuance of\nshares for debt will be subject to a four month hold period.\nMr. Terence Alty, President of Canyon Creek, said of the shares for debt\ntransaction \"This conversion to equity by the most significant debt and equity\nholder of Canyon Creek, along with the company's recent major contract\nannouncements, represent huge steps forward for the company. The long term\ncommitment to the future of Canyon Creek shown by our most significant\nshareholder puts Canyon Creek in a financial position to take full advantage\nof our burgeoning opportunities in the fresh food marketplace.\"\n\nAbout Canyon Creek\n------------------\n\nCanyon Creek is a food processing company based in Calgary and Edmonton,\nAlberta providing fresh soups and other prepared food products for today's\nhealth conscious consumer. The company provides its fresh food product line to\nboth grocery retailers and a broad range of food service establishments such\nas restaurants and instituti...