SOURCE: New Leaf Brands, Inc.
OLD TAPPAN, NJ--(Marketwire - Oct 8, 2012) - On October 3, 2012, James A. Thomas II, then a consultant to New Leaf Brands, Inc. (PINKSHEETS: NLEF), who was authorized by the Chief Executive Officer of the Company to use the title "acting interim Chief Financial Officer" advised the Company's Board of his belief in the existence of certain alleged irregularities regarding actions by the Company's Chief Executive Officer and actual Chief Financial Officer, David Fuselier, relating to several checks (amounting to $4,800 in one instance and $18,000 in another) as well as certain concerns regarding lack of effective internal controls and procedures at the Company. On October 4, 2012, the Company's Board met and determined that the Company's two outside directors, Terry Kinder and Ted Eppel, would form an ad hoc committee to investigate Mr. Thomas' allegations and would seek independent professional assistance in doing so. Upon completion of their investigation, they intend to report their conclusions and proposed course of action to the Board and to disclose same publicly. Also on October 4, 2012, David Fuselier, who continues to serve as Chief Executive Officer and Chief Financial Officer, terminated Mr. Thomas' consultant relationship with the Company.
New Leaf Brands, Inc. is a diversified beverage holding company acquiring brands, distributors and manufacturers within the industry. New Leaf Tea was the company's first product and now is available to consumers in 12 unique flavors -- including 6 lemonades -- at over 10,000 outlets including restaurants, delis, health food stores, pizzerias and other retail establishments. New Leaf beverages are sweetened with cane sugar. Visit us at: www.NewLeafBrands.com.
This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Company's expectations, among other things, are dependent upon general economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to operate its subsidiary companies effectively, need for and availability of additional capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's Form 10-Ks and 10-Qs on file with the United States Securities and Exchange Commission.