News

Afton settles with Pizza Delight

August 1, 2002

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BURLINGTON, Ontario -- Afton Food Group Ltd. (AFF-TSX "Afton") has reached a settlement with the shareholders of Pizza Delight Corporation regarding the share purchase and merger agreement between the two companies on May 30.

Pizza Delight shareholders terminated the agreement on July 23, which left Afton threatening legal action.

According to an Afton release, as part of the settlement, Pizza Delight will purchase 1,470,588 Afton common shares, 11.88 percent of the issued and outstanding common shares. The purchase will occur after the settlement and at a price of CAN 85 cents (U.S. 54 cents) per share, or CAN $1.25 million (U.S. $787,500).

Those shares are also subject to trading restrictions ranging between six and 12 months.

Afton said it continues to explore opportunities for acquisitions and recapitalizing into an income trust, but the company did not indicate whether any future initiatives would include Pizza Delight. Calls to Afton's headquarters were not returned.