Stake Announces Acquisition of Cloud Mountain Inc. and Organic Kitchen Inc.
TORONTO--June 18, 2002--Stake Technology Ltd.
(Stake) (Nasdaq:STKL)(TSX:SOY) today announced it has reached
agreement to acquire certain assets and the business of Cloud Mountain
Inc. and Organic Kitchen Inc. These two companies based in Toronto
form an integrated unit which sources, blends and supplies proprietary
organic feeds to organic poultry producers. The companies then partner
with organic processors who package chicken and turkey products to
mass marketers under their private label or the Organic Kitchen
brand(TM).
These companies are the only major supplier of organic chicken in
Canada, a market which is expanding rapidly with the growth in the
natural and organic food industry. The company is currently growing
50,000 chickens every 8 weeks and intends to expand that by a multiple
over the next year. The company also intends to add to the organic
meat product lines in response to growing consumer demand.
Under the terms of the acquisition agreement, Stake purchased
these assets for cash and 10% of pretax profits through December 2005.
The acquisition of Cloud Mountain Inc. and Organic Kitchen Inc.
continues the strategy of creating a major Canadian organic food
company with targeted sales of $100.0 million in Canada.
mu, the organic dairy product line, which was launched in April,
was the first step in the process and it is intended that both product
lines will be launched across Canada.
¶ Stake Technology Ltd. is an owner/operator of high-growth ethical
businesses, focused on environmental responsibility and the health and
well being of its communities. For the last four consecutive years,
Stake was included in Profit magazine's `Profit 100' list of the
100 fastest growing companies in Canada. Currently, the company has
three business units: the SunRich Food Group, which specializes in
identity-preserved (IP) grain products and natural food ingredients;
from seed to packaged product and is the single largest supplier of
soy milk concentrate in the U.S.; the Environmental Industrial Group;
a producer, distributor, and recycler of industrial materials; and the
Steam Explosion Technology Group who market clean pulping
technologies. Each of these business units has proprietary products
and services that give it a solid competitive advantage in its sector.
For further information, please contact:
Stake Technology Ltd. Investor Relations Counsel
Jeremy N. Kendall, Chairman & C.E.O. The Equity Group Inc.
John D. Taylor, President & C.O.O. Stephanie Horton 212-836-9611
Susan Wiekenkamp, Information Officer skhorton@equityny.com
Tel: 905-455-1990 Linda Latman 212-836-9609
info@staketech.com www.theequitygroup.com
Websites: www.staketech.com www.sunrich.com www.bei.ca
www.steamexplosion.com www.sunrichvalley.com
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This news release may contain forward-looking information. |
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Actual future results may differ materially. The risks, uncertainties, |
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and other factors that could influence actual results are described in |
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the Company's Annual Report to shareholders and in SEC reports. |
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--30--kmr/cl*
CONTACT: |
Stake Technology Ltd. |
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Jeremy N. Kendall or John D. Taylor or Susan Wiekenkamp |
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Tel: 905/455-1990 |
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info@staketech.com |
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or |
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The Equity Group Inc. |
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Investor Relations Counsel |
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Stephanie Horton, 212/836-9611 |
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skhorton@equityny.com |
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or |
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Linda Latman, 212/836-9609 |
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www.theequitygroup.com |
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