DALLAS, April 6, 2001 (PRIMEZONE) -- Fresh America Corp. (Nasdaq:FRES), a major North American fresh produce distribution company, today reported that it is continuing efforts to refinance or extend its senior secured revolving credit facility. The credit facility was originally scheduled to expire on February 1, 2001; however, the Company has received extensions through April 16, 2001 to provide additional time for negotiations. The outstanding borrowings under the facility have been reduced from $21.2 million at December 31, 1999 to a current balance of $8.6 million. There can be no assurance that the Company will be able to extend its senior credit facility beyond April 16, 2001 or receive consents and waivers required from other debtors for such extension to become effective. The Company is also continuing its efforts to arrange replacement financing or other sources of funds should such extension become effective.
The Company also announced today that it has received notice from The Nasdaq Market, Inc. that Fresh America's common stock had failed to maintain a minimum market value of public float of $5 million over the last 30 consecutive trading days as required by Nasdaq rules. Fresh America will be provided until April 25, 2001 to regain compliance with the rule. If Fresh America is unable to demonstrate compliance with the Nasdaq rule by April 25, 2001, its common stock will be subject to delisting from the Nasdaq National Market. Fresh America is considering what action to take to respond to the possible delisting by Nasdaq. Additionally, as of December 29, 2000, the Company fails to meet the Nasdaq National Market's minimum requirement for net tangible assets of $4 million.
Fresh America is an integrated food distribution management company that operates ten distribution facilities located in Dallas and Houston, Texas; Atlanta, Ga.; Pensacola, Fla.; Scranton and Wilkes-Barre, Pa.; Richmond, Ind.; Chicago; Phoenix, Ariz.; and Los Angeles.
This news release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Important risk factors that could cause actual results to differ materially from those reflected in the Company's forward-looking statements include the Company's continued dependence on key customers, risks associated with new business opportunities, volatility of produce prices and quality, the availability and costs of borrowed funds and covenant requirements of its lenders, general economic and market conditions, competition, dependence on key personnel and seasonality, as well as the risk factors and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission.