Toronto, Canada--(Newsfile Corp. - November 30, 2018) - Sweet Natural Trading Co. Limited (TSXV: NTRL) ("Sweet Natural
Trading", or the "Company") announces that is has released its financial and operating results for the three months ended September
30, 2018 and September 30, 2017. Highlights of the results include:
|
|
|
|
|
|
|
2018 |
|
2017 |
Revenue |
$ |
1,050,208 |
$ |
1,627,207 |
Gross Profit |
$ |
299,566 |
$ |
543,163 |
Net Loss |
$ |
(1,187,891) |
$ |
(432,758) |
EBITDA |
$ |
(995,114) |
$ |
(198,896) |
Adjusted EBITDA* |
$ |
(409,283) |
$ |
(122,056) |
Loss per share |
$ |
(0.02) |
$ |
(0.01) |
|
|
|
|
|
* EBITDA adjusted for share-based payments, restructuring and research and development costs.
Sweet Natural Trading continues to be an industry leader in providing the highest quality xylitol to the North American retail
market and aspires to continue to be the industry leader. To allow for continued growth and capacity, management decided to shutter
operations in Denver and utilize the services of focused and established co-packers together with a leading third party logistics
company which will help to improve cost efficiencies, reduce fixed cost overhead and improve margins. Sales and margins in Q3
however were impacted by the transition. The Company has worked diligently with both suppliers and co-packers to execute a plan to
mitigate the situation for the remainder of the year. As part of the transition the Company also incurred $574,347 in restructuring
costs in shutting down Denver operations this quarter of which the majority was non cash related to write offs of legacy inventory
and equipment.
With the brand transformation and restructuring of the business almost complete, the Company has focused its efforts on meeting
with retailers and customers to now focus on sales growth - from adding new accounts, expanding geographic distribution with
existing accounts and product extension to leverage the now 7000+ retail doors that the Company currently penetrates. We continue
to use this momentum to target sales growth with our newly branded portfolio of natural sweeteners. The full text of the Company's
interim consolidated financial statements and related management's discussion and analysis ("MD&A") can be found at: www.sedar.com.
Additional Financing
On November 6, 2018 the Company completed its non-brokered private placement previously announced on September 21, 2018 (the
"Offering"), resulting in the issuance by the Company of 30,000,000 units (the "Units") for gross proceeds of $1,500,000. Each Unit
consists of one common share (a "Common Share") of the Company and one Common Share purchase warrant (each a "Warrant"). Each
Warrant will entitle the holder thereof to purchase one Common Share, at a price of $0.075, for a period of 36 months following the
date of issuance. Each Warrant will also have an accelerated expiry date within 30 days of when the Company provides written notice
to the holder thereof that either: (i) the Common Share volume weighted average price on the TSX Venture Exchange for any 10
consecutive trading days has equaled or exceeded $0.22; or (ii) the Company closes a subsequent private placement of Common Shares
at a price per Common Share exceeding $0.22. The funds raised pursuant to the Offering will be used by the Company for general
working capital purposes including purchasing inventory to satisfy new sales accounts and to pursue the Company's strategic
plan.
About Sweet Natural Trading Co. Limited
Sweet Natural Trading Co. Limited is a leading natural sweetener company that promotes healthier eating by selling food products
that reduce refined, added sugar consumption. With obesity and diabetes reaching unprecedented levels, the Company is focused on
making a positive impact in reducing these lifestyle diseases. Sweet Natural Trading Co. products are sold in over 7,000 stores
including major retail customers such as Loblaws, Walmart, Whole Foods, Costco, Publix, Sprouts and distributors including UNFI and
KeHE.
For more information about Sweet Natural Trading Co. Limited please contact:
Steven Haasz
CEO and a director of Sweet Natural Trading Co. Limited
416.288.1019
shaasz@sweetnaturaltrading.com
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact included in this release, including, without limitation, statements regarding
the Offering and the Company's strategic growth plan, are forward-looking statements that involve risks
and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ
materially from the Company's expectations are risks detailed from time to time in the filings made by the Company with securities
regulators.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the
Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue
reliance on any forward-looking information. Such information, although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements
contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in
this news release are made as of the date of this news release and the Company will only update or revise publicly any of the
included forward-looking statements as expressly required by Canadian securities law.