The controlling shareholder and president of Central Canada Foods Corp. (the "Company"), George Michaels along with his wife, and two other independent members of his family have entered into a share purchase agreement ("SPA") dated effective as of October 26, 2006 to sell their interest in the Company to Zoran K Corporation, a private Ontario company controlled by Zoran Konevic, subject to regulatory approval. The transaction contemplates that Mr. Michaels will remain as President and Director of the Company.
In contemplation of the closing of this transaction, George Michaels and his wife Francine Michaels filed with SEDAR their respective Notice of Intention to Distribute (Form 45-102F1) on October 26, 2006.
Under the SPA, Mr. Michaels and his family members will sell 10,005,333 Class A common shares, or approximately 52% of the issued and outstanding shares of the Company to Zoran K Corporation. Mr. Michaels currently controls 9,300,000 of said shares directly and 300,000 through his wife. Upon the closing of the transaction, the sale will constitute a take-over bid exempt from the take-over bid rules set out in the securities legislation.
The shares shall be acquired at a purchase price of $0.23 per share pursuant to the terms of the SPA. The shares shall be pledged against all moneys owed by Zoran K Corporation to Mr. Michaels and his family members as set out in the SPA. The transaction is expected to close on November 3, 2006.
"I am very pleased to acquire a controlling interest in Central Canada Foods Corporation and look forward to the future growth of the company" said Zoran Konevic.
About Central Canada Foods Corporation
Central Canada Foods Corporation (TSX VENTURE: CDF.A) is a federally inspected, HACCP approved, meat processing company that converts wholesale cuts or "primal meat cuts" and converts smaller cuts derived from the primal cuts or "sub primal meat cuts" into fresh-boxed and case ready products, including hams and boneless picnic loins, for shipment to its customers. CCFC's products are marketed and sold to Canadian national and regional grocery chains, as well as in the Asian-Pacific market and other international markets.
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