Co-ops

vs.

Corps.

An Example of a Special Note for a Forward-Looking Statement from a Publicly Traded Food Product Corporation

by Hal Brown

When publicly traded corporations, as opposed to cooperatives, issue statements which anticipate future growth, or "forward-looking statements," including statements about the Company's future plans, goals and other events which have not yet occurred, there are legal ramifications to what is said publicly. Thus cautionary notes will often be appended to documents such as press releases to the effect of "these statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. They can generally be identified because the context of such statements will include words such as believes, anticipates, and expects."

Northland, for example, adds a detailed type of caution: "Whether or not these forward-looking statements will be accurate in the future will depend on certain risks and factors including risks associated with (i) development, market share growth and continued consumer acceptance of the XYZ Company's branded products; (ii) integration of the operations of  Inc., acquired in fiscal 19--, and the  division of XYZ  Corporation, acquired on xx/xx/xxxx; (iii) strategic actions of XYZ's competitors in pricing, marketing and advertising; and (iv) agricultural factors affecting X's crop and the crop of other North American growers. These and other risks and factors that should be considered are further set forth in the Company's Form S-3 Registration Statement (No. 333-53173) filed with the Securities and Exchange Commission on May 20, 1998..

Readers should consider these risks and factors and the impact they may have when evaluating these forward-looking statements. These statements are based only on management's knowledge and expectations on the date of this press release. The Company will not necessarily update these statements or other information in this press release based on future events or circumstances."

 

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