Toronto, May 15, 2008 - SunOpta Inc. today provided an update on the status of activities relating to the write-downs in the SunOpta Fruit Group berry operations, the delay in the filing of its Annual Report 10-K for the year ended December 31, 2007 and Form 10-Q for the period ended March 31, 2008 and the potential impact of the ongoing review of previously issued 2007 quarterly financial statements as well as actions being taken to address the issues identified.
As previously detailed, a notice was received from The Nasdaq Stock Market in April 2008, advising that the Company was not in compliance with Nasdaq Marketplace Rules as a result of the delay in the filing of its Annual Report. The Company appealed this notice and met with the Nasdaq Listing Qualification Panel on May 8, 2008 to discuss the steps the Company was taking to remedy the delay. At this hearing, the Panel requested that the Company provide a further update in thirty days. At that time, the Panel will consider the Company's continued listing of the shares.
The Company reported that it continues to make progress with its 2007 year end analysis and related investigative procedures, the implementation of a series of actions within the berry operations designed to address the root causes of issues identified, and the independent investigation being conducted by the Company's Audit Committee. The Company also reported that it has filed a Form 12b-25 with the U.S. Securities and Exchange Commission related to the delay in the filing of its quarterly report on Form 10-Q for the quarter ended March 31, 2008. The filing of its first quarter 2008 10-Q will follow the filing of the amended 2007 quarterly statements and the Annual Report 10-K for the year ended December 31, 2007.
The Company continues to execute on ongoing business development and strategic initiatives, as evidenced by the recent introduction of a new single serve chocolate soymilk product for a major global retailer, the expansion of aseptic packaging and soybase processing capabilities, investment in a natural and organic oil refining facility in Colorado, the completion of the acquisition of Tradin Organic Agriculture of Amsterdam which significantly expands the Company's global organic ingredients sourcing platform, and the ongoing expansion activities within the SunOpta Distribution Group which is now positioned as the leading integrated distributor of natural, organic and specialty foods in Canada with approximately $250 million in revenues.
The Company continues to strengthen its management team and recently announced the appointment of Mr. Tony Tavares as Vice President and Chief Operating Officer, effective June 1, 2008. Mr. Tavares brings over 20 years of extensive food industry experience to the Company and will be a valuable addition as the Company focuses on maximizing its core strategic strengths and driving improved profitability and return on equity. In addition, the Company recently appointed Mr. Gerry Watts as President, SunOpta Fruit Group - Berry Operations, effective May 15, 2008. Mr. Watts brings over 25 years of extensive experience in the fruit industry to this role and will take a key leadership role in the Company's berry operations.
There is no other material information concerning the affairs of the Company at this time that has not been generally disclosed.
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and health and beauty markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.7% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and the SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the pulp, bio-fuel and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.