CRANFORD, N.J., Sept. 30, 2016 /PRNewswire/ -- TOFUTTI BRANDS
INC. (NYSE-MKT: TOF) ("Tofutti" or the "Company") announced that
its Board of Directors has commenced a review of its strategic
alternatives intended to enhance shareholder value. This
review may result in the Company's continuing to pursue
value-enhancing initiatives as a standalone company or a possible
sale or other form of business combination. The Board of
Directors has retained BDA Advisers, Inc. as its financial advisor
and Carter Ledyard & Milburn LLP
as its legal advisor in connection with the review.
No decision has been made to enter into any transaction at this
time, and there can be no assurance that the consideration of
strategic alternatives will result in any transaction. There
is no set timetable with respect to the Board's review, and the
Company does not expect to make further public comment regarding
these matters unless and until the Board approves a specific action
or otherwise concludes its review.
The Company also announced its intention to file a Form 25
(Notification of Removal from Listing and/or Registration under
Section 12(b) of the Securities Exchange Act of 1934) with the U.S.
Securities and Exchange Commission to voluntarily withdraw its
common stock from listing on the NYSE MKT. The Company
expects to file the Form 25 on October 11,
2016 and expects the delisting to be effective approximately
10 days after the filing of the Form 25. Upon delisting, the
Company intends that its common stock will trade on the OTCQB
Venture Market.
Recently, the Board of Directors unanimously approved a
resolution authorizing the Company to voluntarily delist from the
NYSE MKT. Material facts related to this important decision
include the inability of the Company to regain compliance with the
continued listing requirements of the NYSE MKT Company Guide within
the relevant compliance period.
The Company has previously reported it had received notice from
the NYSE MKT informing the Company that it was not in compliance
with the stockholders' equity requirements of Section 1003(a)(ii)
of the NYSE MKT Company Guide and had net losses in its four most
recent fiscal years. On June 23, 2015, NYSE Regulation,
Inc. notified the Company that it accepted the Company's plan of
compliance and granted the Company an extension to regain
compliance with the continued listing standards of the Company
Guide until October 1,
2016.
About Tofutti Brands Inc. Founded in 1981, Tofutti
Brands Inc. develops and distributes a complete line of dairy-free
products. The Company sells more than 80 milk-free foods
including frozen desserts, cheese products and prepared frozen
dishes throughout the United
States and in more than 30 countries. Tofutti Brands
Inc. is a proven innovator in the food industry and has developed a
full line of delicious and healthy dairy-free foods.
Available throughout the United
States and in more than 30 countries, Tofutti Brands answers
the call of millions of people who are allergic or intolerant to
dairy, diabetic, kosher or vegan, as well as those who wish to have
a healthier low-fat diet. Tofutti's product line includes
dairy-free ice cream pints, Tofutti Cutie® sandwiches and novelty
bars. Tofutti also has a growing array of prepared foods
including Pizza
Pizzaz® and Mintz's Blintzes®, all made with Tofutti's milk-free
cheeses such as Better Than Cream Cheese® and Sour Supreme®.
For more information, visit www.tofutti.com.
Forward-Looking Statements. Some of the statements
in this press release concerning the Company and its efforts to
enhance shareholder value are forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking
statements. Actual results may vary significantly based upon
a number of factors including, but not limited to business
conditions both domestic and international, competition and other
risk factors detailed in the Company's filings with the Securities
and Exchange Commission, including its annual report on Form 10-K
and quarterly reports on Form 10-Q.
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SOURCE Tofutti Brands Inc.