TSXV Symbol: CYF
CALGARY, May 18 /CNW/ - Canyon Creek Food Company Ltd. ("Canyon Creek"),
listed on the TSX Venture Exchange Inc. under the trading symbol "CYF", is
pleased to announce that it is proposing to settle $3,150,000 of debt by the
issuance of 10,500,000 common shares at a price of $0.30 per common share,
subject to the approval of the TSX Venture Exchange. The Corporation's debt
arises pursuant to promissory notes issued to Chemco Electrical Contractors
Ltd. ("Chemco") for the provision by Chemco of ongoing working capital over
Canyon Creek's past 5 fiscal years, as detailed in the financial statements of
the Corporation throughout the period. The President, Chief Executive Officer
and controlling shareholder of Chemco is Brian Halina, who is also the
Chairman of the board of directors of Canyon Creek. In addition to accepting
the shares as settlement for the debt, Chemco has agreed to forgive all of the
accrued interest on the promissory notes in the approximate amount of
$900,000. Assuming completion of the transaction, Canyon Creek will have
approximately 33,316,519 common shares issued and outstanding with Chemco and
Mr. Halina owning, directly or indirectly, 17,242,186 common shares,
representing approximately 52% of the issued and outstanding shares of the
Corporation. All of the shares issued to Chemco pursuant to this issuance of
shares for debt will be subject to a four month hold period.
Mr. Terence Alty, President of Canyon Creek, said of the shares for debt
transaction "This conversion to equity by the most significant debt and equity
holder of Canyon Creek, along with the company's recent major contract
announcements, represent huge steps forward for the company. The long term
commitment to the future of Canyon Creek shown by our most significant
shareholder puts Canyon Creek in a financial position to take full advantage
of our burgeoning opportunities in the fresh food marketplace."
About Canyon Creek
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Canyon Creek is a food processing company based in Calgary and Edmonton,
Alberta providing fresh soups and other prepared food products for today's
health conscious consumer. The company provides its fresh food product line to
both grocery retailers and a broad range of food service establishments such
as restaurants and institutions throughout Canada.
The TSX Venture Exchange has neither approved or disapproved of the
contents of this press release.
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