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Skinny Nutritional Corp. (SKNY) Provides Investors With Update Concerning Purchase Agreement With Trim Capital

|Includes: Skinny Nutritional (SKNY)

Skinny Nutritional, the maker of Skinny Water® and a leader in the zero-calorie enhanced water category, has entered into a Standstill Agreement with Trim Capital LLC. The two companies will continue discussions regarding the status of, and obligations under, the Securities Purchase Agreement dated June 28, 2012 (the "Purchase Agreement").

Under this agreement, Trim Capital agreed to purchase an aggregate of $9.0 million of equity securities in a private placement transaction, subject to certain conditions. At the first closing, which was completed on June 28, 2012, Skinny Nutritional sold a $1,000,000 senior secured note (the "Initial Note") to Trim Capital. Later, on August 14, 2012, the company sold an additional initial senior secured note in the aggregate principal amount of $270,000 which was deemed part of the "Initial Note." The Purchase Agreement provided for a second closing, subject to certain conditions, to be held on or prior to August 28, 2012, which has not occurred.

Following a period of discussion, Skinny Nutritional and Trim Capital have agreed to enter into the Standstill Agreement under which they will have a 60-day period to discuss a plan with respect to the obligations under the Purchase Agreement and the Initial Note. The agreement terminates the prohibition against Skinny Nutritional soliciting alternative transactions and enables the company to pursue various strategic and/or financing alternatives in order to address its obligations and to provide for additional working capital. In addition, the Standstill Agreement provides that the parties will refrain from commencing or prosecuting any claims against the other or their respective affiliates during the standstill period.

For additional information, visit the company's websites at SkinnyWater.com

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