MOORE, Okla., Feb. 24, 2010 (GLOBE NEWSWIRE) -- Vaughan Foods, Inc. (Nasdaq:FOOD) announced today that it closed a private placement financing. In the transaction the Company raised $1.85 million and issued 926,500 Units at $2.00 per Unit, each Unit consisting of five shares of restricted Common Stock and two 5-year restricted warrants to purchase one share of Common Stock at $0.70 per share. Taglich Brothers, Inc., a FINRA-registered broker-dealer, acted as the placement agent in connection with the financing.
The Company plans to use the proceeds of the private placement in connection with its expansion plans, capital expenditures, continued enhancements to its enterprise resource planning system and for general corporate purposes.
"We are pleased to see the swift and successful closing of the recent private placement transaction and the support from investors. The net proceeds will strengthen our balance sheet and help us expand our operations capacity as we continue our efforts to become the first national company with regional facilities that will manufacture and deliver a full array of refrigerated fresh foods multiple times per week," said Mr. Herb Grimes, Chairman and Chief Executive Officer of Vaughan Foods. "We thank all of our new investors for their support in helping us pursue our long term goals."
About Vaughan Foods, Inc.
Vaughan Foods is an integrated manufacturer and distributor of value-added, refrigerated foods. We are uniquely able to distribute fresh-cut produce items along with a full array of value-added refrigerated prepared foods multiple times per week. We sell to both food service and retail sectors. Our products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes. Our primary manufacturing facility is in Moore, Oklahoma. Our soups and sauces are manufactured in our facility in Fort Worth, Texas.
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Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Vaughan Foods, Inc. based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-Q and other reports filed with the Securities and Exchange Commission. Furthermore, Vaughan Foods, Inc. undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.