Ellen's Food Group Inc.

Ellen's Food Group Inc. has been before the Ontario Superior Court of Justice (Commercial List) under court file CV-10-9031-00CL since December 21, 2010, and the proceedings are now closed. In a notice and statement dated March 7, 2013, Deloitte & Touche Inc. reported that, according to the Company's principal, no assets remained other than a management contract with a related party. Equipment at 30 Sims Crescent, Richmond Hill had been sold to TFI Foods Ltd. for $954,000 plus HST, $1,078,020 in total received in June and July 2012, and $470,000 was transferred to a related company on June 22, 2012 to repay operating debts; the recipients of the TFI proceeds other than HSBC Bank Canada were under investigation. HSBC's claim was stated at $269,162.36, having taken a $150,000 partial repayment of its secured advances on July 3, 2012.