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Exhibit No. Description
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99.4 Press Release, dated October 2, 2000.
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Exhibit 99.4
INTERNATIONAL MENU SOLUTIONS CORPORATION
MENU COMPLETES FINANCING AND ESTABLISHES IN-ROADS TO SECURE U.S. BASED FOOD
LINE
October 4, 2000 12:01 AM Eastern Time
TORONTO and LOS ANGELES, October 4 /PRNEWSWIRE/-- International Menu Solutions,
Corporation ("MENU") (www.internationalmenu.com) is pleased to announce that it
has received an equity investment from PAC, Inc. ("PAC") of St. Louis, Missouri,
for total proceeds of $1.5 million USD ($2.2 million CDN). The equity placement
consisted of 750,000 common shares of MENU and 500,000 warrants. The warrants
provide PAC with the opportunity to purchase up to 500,000 shares of MENU at an
exercise price of $2.00 per share.
Concurrently with the PAC investment, MENU has entered into an Interim Operating
Agreement ("IOA") with Texas-based Great American Barbecue Company ("GABCO"),
whereby it has agreed to participate in the marketing and operations of GABCO
for the period from September 20, 2000 to April 30, 2001 during which time MENU
may, subject to various terms and conditions, elect to purchase the assets of
GABCO. $1 million USD of the proceeds from the PAC investment are expected to be
loaned to GABCO for working capital purposes. The balance of the proceeds will
be used for working capital to help meet MENU's anticipated seasonal 4th quarter
product demand throughout the U.S. and Canadian supermarket sector. As part of
the agreement, MENU provided PAC with an option to sell back to MENU 300,000
shares at a specified price after September 20, 2001 subject to certain terms
and conditions. As well, should MENU not exercise its right to buy the assets of
GABCO, it would, in exchange for common shares of MENU, acquire PAC's preferred
shares in GABCO and buy PAC's loan to GABCO. The details of the IOA and PAC
investment are described in more detail in MENU's 8-K filed with the SEC today.
GABCO markets fully cooked barbecue food products to the retail supermarket and
the food service sectors and had revenues for the 12 months ended June 30, 2000
of approximately $22 million ($33 million CDN).
MENU President Michael Steele said that he was very pleased with terms of the
operating agreement as it not only is anticipated to provide MENU with access to
a line of fully cooked protein food items, but it will also provide MENU and its
other manufacturing divisions access to Southeastern and Southwestern food
chains along with significant food service distribution opportunities through
GABCO's programs in 23 states. Steele further explained that should MENU
ultimately acquire the assets of GABCO, it would provide MENU with over 140
barbecue, sausage, fajita and specialty products that could generate spring and
summertime sales volumes that may help to balance MENU's heavier fall and winter
sales.
MENU operates in the rapidly growing sector of the food industry known as Home
Meal Replacement (HMR) food preparation and marketing. Since July 1998, MENU has
expanded its sales through acquisitions and the organic growth of its product
lines with leading food retail chains. The company's clients include some of
Canada's leading retail food supermarket chains such as Sobey's, Safeway, Costco
(in Canada and the US), and A&P, along with several major US supermarket and
club store chains.
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Certain statements contained in this press release, such as statements regarding
expected revenues and other statements that do not relate strictly to historical
or current facts, are "forward-looking" statements as defined in U.S. federal
law. Forward-looking statements use such words as "plans," "expects," "will,"
"will likely result," "are expected to," "will continue," "is anticipated,"
"estimate," "project," "believes," "anticipates," "intends," "expects," "may,"
"should," "continue," "seek," "could" and other similar expressions. Although
the Company believes that its expectations are based on reasonable assumptions,
it can give no assurance that its expectations will be achieved. The important
factors that could cause actual results to differ materially from those in the
forward-looking statements herein (the "Cautionary Statements") include, without
limitation, the ability of the Company to successfully implement its strategies
and business plans, risks associated with acquisitions and the integration
thereof, competitive factors and pricing pressures; relationships with
manufacturers, banks, and distributors; legal and regulatory requirements;
general economic conditions; as well as the other risks referenced from time to
time in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-KSB for the year ended December
31, 1999. All subsequent written and oral forward-looking statements
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by the Cautionary Statements. The Company does not
undertake any obligation to release publicly any revisions to such
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
For further information contact Michael Steele, President, at 416-366-MENU,
ext. 236, e-mail: invest@menusolutions.net or visit our website at
www.internationalmenu.com.
SOURCE International Menu Solutions Corporation