Friday, 2 May 2008

Riches Rejected and Plaudits Collected

Planet Organic Health Corp. (TSX-V: POH)
Basic Shares 33.1 million
Fully Diluted 38.2 million


It’s not every day of the week you can stare Bay Street and Wall Street money men in the eye and reject offers to finance your business venture’s growth.
But Planet Organic did just that on Wednesday (April 30th) and the next day found itself celebrated by a national feature magazine as Canada’s top organic food retailer.
In context of poor market conditions, especially in the junior sector and low ball offers to provide equity capital, Planet's management said it wasn't prepared to accept excessive share dilution.
So with $2 million in the bank and a healthy cash flow from this fiscal year’s (June 30) projected $100+ million revenue stream, the previously announced expansions in all of Planet’s five divisions will proceed. In other words, organic growth plans will stay in place. In the meantime, other financial alternatives to find the cash required for Planet’s more aggressive growth plans will be explored, according to CFO Darren Krissie.
To view the full press release on the finance rejection, please click here.
But while Bay Street and Wall Street proved disappointing, there was excellent news on the home front after Corporate Knights magazine said Planet Organic stood heads above all other Canadian organic retailers.
The magazine gave Planet Organic’s Canadian food retailer division – Planet Organic Markets (POM)– an ‘A’ for “Excellent” rating. POM beat out its most direct competitor, Whole Foods, and 13 other major grocers such as Loblaws and Safeway.
That also stands as a great testament to the work of Mark Craft and Diane Shaskin, the couple that partnered up with Mr. Krissie to start the parent corporation, and who still run POM. To view the full Corporate Knights magazine story, please click here.