NEW LEAF BRANDS INC
DANBURY, CT--(Marketwired - Jun 10, 2015) - New Leaf Brands Inc. (
New Leaf's CEO, David N. Fuselier, commented on the current condition of the company: "The past eighteen months have been immensely disappointing to the board, management, shareholders and all stakeholders alike. We sought to build shareholder value by re-invigorating our flagship New Leaf beverage brand and expanding into the beverage distribution market. For a variety of reasons, both have failed, and we are now assessing our corporate mission."
New Leaf Brands made considerable strides in its restructuring during 2012, raising capital, increasing net equity and re-establishing sales, primarily in the northeast.
In 2013, New Leaf acquired a beverage distributor that generated approximately $4,000,000 in revenues and that held much promise for growth. As part of the transaction, New Leaf entered into an agreement with a nationally recognized factoring company that provided a $1,000,000 credit facility that successfully supported the company's operations throughout 2013 and into early 2014 with no events of default. In 2013, we reluctantly put into hibernation our New Leaf branded teas and lemonades.
In 2014, we then entered into a $4,000,000 credit facility relying largely on the new lender's representation that the credit facility could be utilized for acquisitions. The lender funded one initial tranche of $1,000,000 under the facility and then reneged on significant terms as provided under the facility. In doing so, our distribution operations became severely constrained and we lost most of our key distribution brands and their inherent distribution value. The lender has since declared us in default and we have counter-sued for an array of reasons; many of which are civil in nature but some approach other forms of law. We have discussed in great depth with our legal counsel and with regulatory authorities our follow on courses of action. We intend to pursue, to the fullest extent possible, the resolution of this matter. Management is disgusted by this lender's pattern, practice and tactics and cannot ignore, nor forget, the suffering it applied to New Leaf and its subsidiary.
New Leaf's CEO, David N. Fuselier, continued, "This lender put 24 people, with families, out of jobs and destroyed an otherwise good operation. We didn't need a lender to purposely and maliciously drill it into the ground -- anyone could do that. Our distribution company was a good operation, with good brands, a great location, with good people, and this lender checked out after the closing with the intent to cause the Company harm. They had performed due diligence, provided the credit line and made choices that substantially harmed our operations."
In the coming week, management will establish a new corporate mission and provide additional press releases relaying information on financials and audit, litigation, personnel, corporate governance, acquisitions and funding. Management has stated that though these are difficult times, it believes its relationship with stakeholders remains strong.
About New Leaf Brands, Inc.
New Leaf Brands (
This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Company's expectations, among other things, are dependent upon economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to operate its subsidiary companies effectively, need for and availability of more capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's 10-Ks and 10-Qs on file with the Securities and Exchange Commission.
