TORONTO, April 3, 2008 (PRIME NEWSWIRE) -- SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) today provided its regularly scheduled bi-weekly update on the status of activities relating to the write-downs in the SunOpta Fruit Group and the impact on expected financial results for 2007, the potential impact on previously issued 2007 quarterly financial statements and actions being taken to address the issues identified.
As previously indicated in its March 20th press release, the Company has delayed the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and filed Form 12b-25, Notification for Late Filing, with the U.S. Securities and Exchange Commission. The Company also previously filed Form 9A with the Toronto Stock Exchange to similarly report the delay in filing its Annual Report.
The Company reported that both its 2007 year end analysis and related investigative procedures within the Company's berry operations, as well as the investigation being conducted by the Company's Audit Committee, with assistance from independent counsel and accountants, continued to progress. The Company further confirmed continued progress in the assessment and implementation of a series of actions within the berry operations required to address the root causes of issues identified to date that may have led to the write-down, and which are expected to result in improved business processes within the operating unit.
The Company also indicated that it is aware of class action claims filed against the Company in both the Southern District of New York and the Ontario Superior Court of Justice. The Company believes these claims are without merit and intends to vigorously defend itself against these claims.
The Company also stated that outside of the activities specifically focused on the SunOpta Fruit Group, its other operating groups are performing to expectation and remain focused on execution of their short and long term business objectives. The Company continues to execute on its strategic objectives, as evidenced by the recent announcements concerning the investment in an oil refining facility in Colorado, the commencement of new single serve soymilk production for a major global retailer and the completion of the acquisition of Tradin Organic Agriculture of Amsterdam.
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.
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Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to references to expected financial results, business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to final 2007 financial results, the Company's ability to address inventory issues in its berry operations, the outcome of any pending litigation; general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.