Natural Nutrition, Inc. (Pink Sheets: NTNI) announced today an agreement with Cornell Capital, NKA Yorkville Advisors (YA), to convey all of its nutrition related assets in return for a complete release of all indebtedness owed by Natural Nutrition to YA. The total indebtedness released was $27,370,000. Natural Nutrition also conveyed all nutrition related trademarks and intellectual property, including the Natural Nutrition and iNutrition names and trademarks. Both parties to the transaction executed mutual releases as part of the settlement.
The company retained assets relating to its CSI Business Finance, Inc. subsidiary, (formerly iNutrition, Inc.) and will now refocus its efforts on small business lending and consulting. CEO Tim Connolly stated "This transaction results in the company losing its largest source of income, its factory in Ottawa. However, since the company's manufacturing assets in Ottawa were valued by an independent professional at $6.2 million in March of 2009, the board of directors of Natural Nutrition believes that this was an exceptional opportunity for the company and its shareholders to be released from all of its debt in excess of $27 million. This transaction leaves the company completely debt free, with no convertible debt outstanding to further impact our shareholders with the issuance of common stock of the Company related to the prior convertible debt from YA. We intend to rename the public company consistent with its business focus and look forward to rebuilding the company's finance business with a debt free balance sheet."
About Natural Nutrition Inc.
Natural Nutrition, Inc.'s wholly owned subsidiary, CSI Business Finance, Inc. is a small business lending and consulting company. CSI is focused on providing business expansion services to small business, the largest creators of new jobs in the American economy. CSI was formerly a wholly owned subsidiary of Corporate Strategies Merchant Bankers.
This press release contains forward-looking statements, which involve known and unknown risks, uncertainties or other factors that could cause actual results to materially differ from the results, performance or other expectations implied by these forward-looking statements. Natural Nutrition's expectations regarding future sales and profitability assume, among other things, stability in the economy and reasonable growth in the demand for its products, the continued availability of raw materials at affordable prices, retention of its key management and operating personnel, as well as other factors detailed in Natural Nutrition's filings with the Securities and Exchange Commission. The forward-looking statements, assumptions and factors stated or referred to in this press release are based on information available to Natural Nutrition today.