BlueSky News Letter1. Finance We continue to balance paying down debt with using capital from free cash flow to invest in growth. During the six months ended Oct 31, 2022, we invested $589,300 in new equipment and plant upgrades. In addition, between the date of acquisition in Feb 2022 and Oct 31, 2022, we reduced our operating line of credit by approximately $1.0M (from $2.23M to $1.23M) while at the same time paying down acquisition debt by approximately $400,000. Cash flow being used to pay down debt and invest in growth primarily comes from our fully commercial manufacturing business supplying 16,000 retail locations across North America
2. R&D
We signed joint development agreements with industry thought-leaders, Eco-Health Industries Ltd. and High Brix Manufacturing Inc., to develop three regenerative fertilizers that reduce carbon intensity of producing fertilizers, introduce carbon back into the soil, and minimize chemical fertilizer application rates, including the application of urea. Under these agreements, PLAN will own all intellectual property rights and the initial launch of two of the three fertilizers is planned by June 2023. Read more here. 3. Growth
With our BlueSky products in the market being tested, we are pleased to share that we are working with several organizations in the regenerative AgTech, concrete, and energy sectors to help bring sustainable solutions for the replacement of fly ash and harmful fertilizers to the market in 2023. As these are still in the testing phase, we will be pleased to share more details as we progress in our partnerships.
4. Operations
Like many businesses in North America, we spent much of December navigating record-low temperatures that challenged our supply chain, production, and most importantly, our people. Along with this extreme weather, we experienced a record number of team members contracting the flu. It was a month of strategically deploying our skilled, cross-trained staff to the areas of most demand, which enabled us to fulfill our customers’ orders with little to no interruptions.
Additionally, we continue our long-term goal of reducing packaging inventory by eliminating low-margin and competing SKUs. The remaining packaging inventory of these SKUs is being run out while we encourage customers to switch to more profitable alternatives.
5. What’s Next
We announced that our common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”) under the ticker symbol “ASHXF”. DTC eligibility is expected to simplify the process of trading and enhance liquidity of PLAN’s shares in the United States.
PLAN will be meeting one-on-one with top-tier investors from Canada and the United States at the AlphaNorth Capital Event in Nassau, Bahamas, from January 20-22, 2023. Learn more about the event here.