The American Stock Exchange (Amex) has announced its final determination to delist the common stock of Galaxy Nutritional Foods from the exchange. Amex has also filed an application on Form 25 to strike Galaxy’s listing with the Securities and Exchange Commission (SEC).
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The delisting will become effective on 10 July. In keeping with its regulations, Amex provided notice to Galaxy of its decision together with an opportunity for the company to appeal to a panel designated by the Amex’s board of governors.
Meanwhile, the cheese alternatives and dairy-related products group has announced that it has entered into a Receivables Purchase Agreement with Systran Financial Services Corporation, whereby Systran will provide a line of credit to the company through advances against certain trade receivable invoices due to the company.
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By GlobalData
Galaxy said that the Systran credit line is secured by the company’s accounts receivable and all other assets and is subject to a maximum principal amount of US$3.5m. The initial term of the Systran Line ends on 23 June, 2009 and may renew automatically for consecutive 12-month terms unless terminated sooner. Advances under the line bear interest at a variable rate equal to the prime rate plus 1.5% per annum, the company said.
On 23 June this year Systran advanced approximately $2.4m under the new line of credit, of which approximately $1.8m was used to pay in full and terminate Galaxy’s obligations under its line of credit with Textron Financial Corporation, which was scheduled to terminate on 27 June.
“We are very pleased to put in place a new line of credit with Systran that will provide Galaxy with the flexibility to pursue its potential as a brand leader in the healthy cheese and dairy alternatives market,” said Galaxy’s CEO Michael Broll. “As well, our operations have stabilised in recent months and we are beginning to realise significant benefits from the outsourcing of our manufacturing and distribution activities.”
