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New Leaf Announces Completion of $1.5 Million Debt Facility to Finance Inventory and Receivables Growth

^{Published on 2009-12-01 06:20:37 - Market Wire}
 

SCOTTSDALE, AZ--(Marketwire - December 1, 2009) - New Leaf Brands, Inc. (OTCBB: [ NLEF ]) ("the Company"), a provider of great-tasting, healthy beverages for consumers that are made with only high quality ingredients, today announced the completion of a $1.5 million private debt financing. The financing was provided by two accredited investors and is not convertible. Proceeds of the financing will be used for working capital and inventory to meet New Leaf's existing product demand in 2010 and execute on its plans for expansion.

Mr. Eric Skae, CEO of New Leaf, stated, "Our biggest challenge in 2009 was our lack of necessary working capital to meet existing demand. While we were flattered that the market acceptance of our great-tasting product was overwhelmingly positive, our number one goal remains to meet all existing orders and expand our footprint nationally. This infusion of capital will help us meet that goal. As we complete our earlier announced restructuring, we look forward to setting our sites on growing our distribution network and having New Leaf Brands become a household name."

About New Leaf Brands, Inc.:

Founded by Eric Skae in 2004 in Orangeburg, New York, New Leaf was created with the vision of providing healthy beverages for consumers that are great-tasting and made only with high quality ingredients. New Leaf Tea was the company's first product that was born out of that vision and now is available to consumers in 14 unique flavors and in over 8,000 outlets including restaurants, delis, pizzerias and other retail establishments. For more information, please visit [ 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.