EAST RUTHERFORD, N.J., Dec. 23, 2014 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (the "Company") (OTCBB:MMMB), a marketer of specialty pre-prepared, frozen and refrigerated "all natural" food products (as defined by the United States Department of Agriculture), today announced it's third quarter sales for the period ending October 31, 2014 were $3,759,698, an increase of 73% over the prior year's comparable period ending September 30, 2014 of $2,167,517. The Company's loss for the period was $773,809 or $.03 per share versus $493,568 in the prior year or $.02 per share. The net loss includes a one time charge of $104,000 for the termination of its asset based lending agreement with Faunus Group International, Inc. and entering into a new asset based lending agreement with Entrepreneur Growth Capital during the period. Also included in the loss are non cash warrant and option charges of $87,200, which were given to employees and key vendors who provide services to the Company which reflect an increase of $87,800 of non-cash charges over the comparable period in the prior year. In the Company's prior estimates of earnings, the Company underestimated the cost of these non cash charges by approximately $70,000 which are reflected in our Quarterly Report on Form 10Q filed with the Securities and Exchange Commission ("SEC") on December 22, 2014.
The increase in sales volume principally resulted from the continued expansion of distribution of products across the country as well as heavy merchandising activity with box store accounts.
We believe the Company's new gluten free products appear to be having excellent acceptance where placed and the Company has now received new authorizations on its pasta entrée items.
Additionally, On December 19, 2014, the Company entered into a securities purchase agreement (the "Manatuck Purchase Agreement") with Manatuck Hill Partners, LLC ("Manatuck") whereby the Company issued a convertible redeemable debenture (the "Manatuck Debenture") in favor of Manatuck. The Manatuck Debenture is for $2,000,000 bearing interest at a rate of 14% and matures in February 2016. Upon issuance of the Manatuck Debenture, the Company shall issue Manatuck 200,000 shares of the Company's restricted common stock. Additional details related to this financing are available in the Company's Quarterly Report on Form 10Q.
It is important to note that quarterly revenue in the Company's business is subject to variability given that the Company works with a large number of mass-market retailers. Each retailer has purchasing and promotion plans that become active in different months and quarters throughout the year. Consequently, from time-to-time there can be a concentration of orders in certain quarters resulting in uneven revenue results for MamaMancini's. Recognizing that revenue may not be evenly distributed on a quarterly basis, the Company's overarching goal is to achieve consistent annual revenue growth.
MamaMancini's is a manufacturer and distributor of a line of all natural, beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce, and other similar Italian products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Costco, Publix, Shop Rite, Price Chopper, Redners, A&P, Waldbaums, Food Emporium, Harris Teeter, SaveMarts, Luckys, Whole Foods, Shaw's Supermarkets, Kings, Key Foods, Giant Eagle, Stop-n-Shop, Giant Stores, Food Town, Kroger, Winn Dixie, Albertsons, Shoppers, Wal-Mart, Marsh's Supermarkets, Bashas, Bi-Lo, Central Markets, Weis Markets, Ingles, and The Fresh Market.
Forward Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company's 10-KT for the period ended January 31, 2014 and other filings made by the Company with the Securities and Exchange Commission.
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Source: MamaMancini's, LLC