PLAN Balance Sheet StengtheningIn a news release published on February 20, 2024 addressing the sale of surplus equipment ($70,000 for an unused 1998 Coreco 1225 Thermal Processing Kiln), PLAN CEO Steve Harpur made the following staatement:
"As we focus on strengthening our balance sheet, we wil continue to monitor al assets to ensure
they are either working for us or are converted to cash. Two years ago, on Feb 18, 2022,
Progressive Planet Solutions purchased Absorbent Products Ltd. (now Progressive Planet
Products). Progressive Planet has no short-term debt and has reduced the $10.9 milion of long term debt that it borrowed two years ago to a balance of less than $6.5 milion today,"
This worthy initiative continued in Q2 2025 with the disposal of the lease on a warehouse facility that had 7 years remaining to run. With improving efficiencies in finished goods handling logistics, this warehouse space was no longer been utilized or forecast to be needed in the next 7 years. The lease was sold in October 2024, and at a substantial margin over its carrying value, adding considerably to the free cash balance at October 31, 2024.
I would be very interested to have management include an update in the Q2 2025 MD&A wherein they provide details of the lease disposal transaction (location and size of the warehouse in question, who purchased the lease and what kind of business they operate, who was the original lessor, what were the renewal terms in the lease that was purchased)
In addition, this would provide the opportunity to provide information regarding what other APL legacy assets are undergoing monitoring and if not "working for us", are slated for disposition to generate further positive cash flows. It will be 3 years since the APL acquisition and I would expect this is sufficient time for all assets acquired to have been subject to review, assessment and determination if disposal was warranted.