NORTHLAND CRANBERRIES, INC. For More Information Contact:
[LOGO] John Swendrowski, Chairman & CEO
Northland Cranberries, Inc.
800 First Avenue South, P.O. Box 8020
Wisconsin Rapids, WI 54495-8020
Tel: 715-424-4444 Fax: 715-422-6897
www.northlandcran.com
Northland Cranberries, Inc. Announces One-For-Four Reverse Stock Split to
Facilitate a Potential Debt and Equity Restructuring Transaction; Northland
Shares to Trade Over-The-Counter Under New Trading Symbol "NRCNA"
NEWS RELEASE
For Immediate Release, 6:00 a.m., November 6, 2001
Wisconsin Rapids, Wisconsin - Northland Cranberries, Inc. (OTC: NRCNA),
manufacturer and marketer of Northland 100% juice cranberry blends and Seneca
fruit juice products, announced that its Board of Directors approved a
one-for-four reverse stock split. As a result of the reverse stock split, each
four Northland shares outstanding is being automatically converted and combined
into a single share. Fractional shares otherwise resulting from the reverse
stock split will be rounded up to the next highest share. Northland's Board of
Directors was previously provided with the authority to effect this reverse
split by Northland's shareholders at its January 30, 2001 annual shareholders
meeting.
Northland is effecting the reverse stock split to facilitate a potential
debt and equity restructuring that, if consummated, would allow it to
successfully avoid a bankruptcy proceeding. There can be no assurance that any
such restructuring transaction will be consummated or on what terms or
conditions. However, it is expected that a successful restructuring would likely
provide Northland with sufficient working capital and new borrowing capacity to
once again aggressively market and support the sale of its Northland and Seneca
brand juice products, but would likely significantly dilute current
shareholders' ownership percentage in Northland.
Northland does not intend to comment further on any potential restructuring
transaction unless and until such a transaction is consummated.
Northland also announced that it was voluntarily delisting its Class A
common shares from trading on the Nasdaq National Market System effective as of
the close of business on November 5, 2001 so that its shares could begin trading
on the over-the-counter bulletin board on November 6, 2001. Northland's shares
will be traded under the new trading symbol "NRCNA." The OTC bulletin board is a
regulated quotation service that displays real-time quotes, last sale prices,
and volume information in over-the-counter equity securities. Northland is a
vertically integrated grower, handler, processor and marketer of cranberries and
value-added cranberry products. The Company processes and sells Northland brand
100% juice cranberry blends, Seneca brand juice products, Northland brand fresh
cranberries and other cranberry products through retail supermarkets and other
distribution channels. Northland also sells cranberry and other fruit
concentrates to industrial customers who manufacture juice products.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters discussed in this press release are "forward-looking
statements," including statements about the Company's future plans, goals and
other events, which have not yet occurred. These statements are intended to
qualify for the safe harbors from liability established by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can
generally be identified because the context of such statements will include
words such as "believes," "anticipates," "expects," or words of similar import.
Whether or not these forward-
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looking statements will be accurate in the future will depend on certain risks
and factors, including risks associated with (i) the Company's ability to
successfully consummate a debt and equity restructuring transaction that would
allow it to avoid bankruptcy and provide it with necessary additional working
capital and new borrowing capacity to reinvigorate its Northland and Seneca
brand names, regain its lost distribution capabilities and branded products
market share and generate increased levels of branded product sales; (ii) the
terms and conditions of any potential restructuring transaction, including such
a transaction's impact on the Company's shareholders and existing creditors;
(iii) the ongoing impact of the continuing significant industry oversupply of
cranberries; (iv) the development, market share growth and continued consumer
acceptance of the Company's branded juice products, including consumer
acceptance of its "27% Solution"; (v) the disposition of certain litigation
related to the sale of the net assets of the Company's private label juice
business; (vi) the impact of the marketing order of the United States Department
of Agriculture relative to the 2001 crop year, as well as the cranberry purchase
program adopted by the United States Congress; (vii) agricultural factors
affecting the Company's crop and the crop of other North American growers; and
(viii) the Company's ability to comply with the terms and conditions of, and to
satisfy its responsibilities under, its current credit facilities and its other
debt agreements, as to which it is currently in default. Readers should consider
these risks and factors and the impact they have when evaluating these
forward-looking statements. These statements are based only on management's
knowledge and expectations on the date of this press release. The Company will
not necessarily update these statements or other information in this press
release based on future events or circumstances.
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