Vaughan Foods, Inc describes itself as an integrated processor and distributor of value-added, refrigerated foods. Primarily selling to both food service and retail sectors, their products consist of fresh-cut vegetables, fruits, salad kits, dips, spreads, soups, etc. They pride themselves on their unique ability to distribute fresh-cut produce items along with a full array of value-added refrigerated prepared foods multiple times a week.
Today, it has been announced that a registration statement [File Number: 333-165598] originally filed by Vaughan Foods Inc on 3/19/2010 has been declared effective as of 5/21/2010 by the Securities and Exchange Commission. This registration statement included securities issued by FOOD in the private placement transaction that took place on 2/24/2010. This transaction consisted of 3,895,000 shares of common stock sold to third party accredited investors in a $1,903,000 private placement of units, each unit consisting of five shares of common stock and two five-year warrants. The effective registration statement will allow these shareholders to sell back their shares of common stock, consisting of 64 accredited investors and two institutional investors. Vaughan Foods, Inc. will receive none of the proceeds from the sale of shares by selling stockholders. However, if all of the warrants underlying shares of common stock covered hereby are exercised Vaughan will receive aggregate proceeds of $1,090,600, all of which will be added to Vaughan's working capital.
On Tuesday, May 11th, Vaughan Foods, Inc. reported a profitable 1st quarter. Some financial highlights include a net income of $.1 million, or $.02 per share, compared to a net loss of $.3 million or $.96 per share in the comparable 2009 quarter. Gross profit increased to 12.7% in 2010 from 8.7% in the corresponding first quarter of 2009. The improved results are attributable to several factors, including efficiencies in production labor and ingredient costs (partially attributable to its implementation of the Enterprise Resource Planning system), continued stability in commodity raw material costs, and further stabilization of the company's work force.
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