All HRNF shareholders of record at close of business September 30, 2011, will receive a pro rata distribution of 10% of the newly formed Heathrow Enterprises LLC. All shareholders will retain their ownership in HRNF and also own equity shares in Heathrow Enterprises, LLC. The equity shares will be entitled to an annual dividend based on the profits of the LLC.
Aurum Guaranty has agreed to assume a portion of the company's debt as part of the spin-off transaction. "Management believes the corporate restructure, debt elimination, spin-off, and dividend plan provides stockholders the strongest path for equity appreciation," said Michael Pagnano, CEO of Heathrow Natural Food & Beverage, Inc.
Also, HRNF will retain its current common share structure. The issuance of new common shares is not required as part of the company's operational restructure, and the company will not affect a reverse split.
The company will change its name to "Aurum Guaranty" and will soon release its various websites, operational disclosures, and update the company's filings with OTC Markets to "Current Information" status.
From the September 20, 2011, Prepared Foods' Daily News.