Tuesday, 19 February 2008

Planet Goes California

(TSX-V: POH)
Planet Organic racked up another expansion, announcing Feb. 19th that it signed a letter of intent to purchase a rapidly-growing organic food retailer in California.
The deal could see Edmonton-based Planet (POH) buying New Leaf Community Markets of Santa Cruz, California for $9,750,000 (US).

CFO Darren Krissie said the acquisition will be funded through the issuance of 1.2 million shares at a price of $2.50 and the balance of roughly $6.7 million to be paid in cash.

New Leaf reported unaudited, 2007 sales through its three large stores of $26.4 million (US) and EBITDA of $1.5 million.

The letter of intent calls for New Leaf's founders to stay on to manage the existing stores and oversee construction of two new stores and the expansion of an existing store.

To view the full press release please click here.