Victoria, British Columbia--(Newsfile Corp. - November 14, 2024) - ALUULA Composites Inc. (TSXV: AUUA) ("ALUULA" or the "Company") today provides a general corporate update.
"We remain committed to our ambitious growth plans, concentrating on areas that will deliver real impact for our business. A crucial element of this strategy is bringing the right people into the team who can help ALUULA meet these ambitious goals and further advance our material offerings," said Sage Berryman, President & CEO of ALUULA.
Appointment of Chief Scientific Officer
Today, ALUULA announces the appointment of Dr. Tyler Cuthbert as Chief Scientific Officer. Tyler brings a portfolio of scientific achievement in synthetic polymer chemistry, material science and textiles with a number of patents and publications in the area of advanced materials. Tyler has experience developing strategic research and development pathways for sustainable performance-focused material-based products, with an interest in developing material and product strategies for achieving circularity. Tyler also sits on the board of directors for the non-profit Squamish Windsport Society.
"The ALUULA product is a material that represents a new direction in textiles, achieving ultra-light yet strong performance without the need for any additional adhesives or solvents. The initial products from ALUULA are changing the direction of the performance textile market, and I am looking forward to being a part of the evolution of ALUULA materials which will result in new developments to the ALUULA lineup, including realizing complete circular life-cycles for the materials," said Dr. Cuthbert.
Global Advisory Board Addition
Bolstering ALUULA's network of industry experts, ALUULA welcomes Ian Yolles, Venture Partner at Closed Loop Partner's Venture Group to the ALUULA Global Advisory Board. Ian has worked with a number of global brands including The Body Shop, Patagonia and Nike, as well as serving as an advisor and board member for several early-stage companies. He joins Christopher Dardel and Alex Kutches on ALUULA's Global Advisory Board, and his experience in circular economy and the outdoor industry will support ALUULA's circularity ambitions.
Corporate Update
ALUULA remain focussed on divesting non-core assets to the business. On May 31, 2024, the Company entered into a purchase and sale agreement (the "Agreement") with an arm's length third party (the "Buyer") to sell half of its investment in common shares of Xlynx Material Inc. ("Xlynx") for cash consideration of $375,000. Under the terms of the Agreement, the Buyer had an option to purchase the Company's remaining Xlynx shares (the "Additional Shares") on or before September 30, 2024 for an additional payment of $375,000. On September 27, 2024, the Buyer purchased 50% of the Additional Shares for cash consideration of $187,500. The Company provided the Buyer with an option to purchase the remaining 50% of Additional Shares for cash consideration of $187,500 on or before November 30, 2024.
Additionally, as disclosed on January 3, 2024, the Company entered into a $1,000,000 short-term loan agreement (the "Loan Agreement") with 0876991 B.C. Ltd. ("0876991"), a related party to the Company on December 29, 2023. The loan bears interest at a rate of 12% per annum. In June 2024, the parties agreed to amend the Loan Agreement and extend the repayment date from July 1, 2024 to January 1, 2025. On October 16, 2024, the parties entered into a second amendment to the Loan Agreement pursuant to which: (i) $200,000 of the loan remains payable on January 1, 2025 and the due date for repayment of the balance of $800,000 of the loan was extended to January 1, 2026; and (ii) the Company was affirmed as the debtor due to the corporate amalgamation with its wholly-owned subsidiary on August 1, 2024 (please see news release dated September 4, 2024). All other terms of the Loan Agreement remain unchanged.
As 0876991 is a related-party to the Company, the amendments to the Loan Agreement constitute "related party transactions" pursuant to Multi-Lateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").The Company is relying on the exemptions from the formal valuation requirements contained in section 5.5(a) of MI 61-101 and the minority shareholder approval requirements contained in section 5.7(1)(a) of MI 61-101, as the loan does not exceed 25% of the Company's market capitalization, as determined in accordance with MI 61-101.
About ALUULA Composites
ALUULA is a materials company that works with leading brands to make their products significantly lighter, stronger, and more sustainable with its range of 100% recyclable textiles. Proudly owned and manufactured on the Canadian west coast, ALUULA's sustainability efforts and innovative high-performance products are changing the game for its brand partners, putting them on the cutting edge of sustainability and performance.
aluula.com | (TSXV: AUUA)
ALUULA's Brand Partners
The term "brand partners" does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA's technology as a brand ingredient in their products.
TSX Venture Exchange
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements including ALUULA advancing its products and technologies, including including realizing complete circular life-cycles for the materials and Mr. Yolles supporting ALUULA's circularity ambitions,are based on assumptions subject to significant risks and uncertainties as described in the Company's management discussion and analysis ("MD&A"). Because of these risks and uncertainties and as a result of a variety of factors, including the timing and receipt of all applicable regulatory, corporate third-party approvals, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise. Please see Aluula's most recent MD&A at www.sedarplus.ca for a more comprehensive list of risk factors.
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