Toronto, Ontario--(Newsfile Corp. - May 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 March 31, 2018 and March 31, 2017. Highlights of the results include:
2018
2017
Revenue
$1,280,629
$1,607,234
Gross Profit
$131,221
$408,998
Net Loss
$(679,331)
$(768,239)
EBITDA
$(442,779)
$(570,165)
Adjusted EBITDA*
$(431,296)
$(275,817)
Loss per share
$(0.01)
$(0.04)
* EBITDA adjusted for share-based payments and research and development costs.
In recent months, the Company has been experiencing a supply shortage in the global market for the natural sweetener xylitol. For years, Sweet Natural Trading has been an industry leader in providing the highest quality xylitol to the North American retail market and aspire to continue to be the industry leader. Unfortunately, the global xylitol shortage impacted our sales and margins in Q1 as we executed a plan to mitigate the situation for the remainder of the year.
We have an excellent relationship which spans many years with the largest global supplier of xylitol and continue to work with them to become a more strategic, focused partner in order to benefit our customers in 2018 and beyond. For us, the need to maintain the highest quality product is paramount and will govern all our supplier relationships.
The primary issue causing this supply and demand imbalance is the increased overall acceptance of xylitol globally as an alternate natural sweetener which continues to validate our purpose in reducing refined, added sugars in our family's diets with quality 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.
Closing of Financing
The Company is pleased to announce that it has closed its previously announced non-brokered private placement of 10,800,000 common shares of the Company (the "Offered Shares") at a price of $0.05 per Offered Share for total gross proceeds of $540,000 (the "Offering").
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.
Certain insiders of the Corporation subscribed for $260,000 worth of common shares in the Offering. Participation by such insiders in the Offering is considered to be a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101, as neither the fair market value of the securities being issued to insiders, nor the consideration being paid by such insiders, exceeds 25% of the Corporation's market capitalization.
Appointment of David Darakjian as Chief Financial Officer
The Company is also pleased to announce that David Darakjian has joined the Sweet Natural Trading team as Chief Financial Officer effective May 31, 2018. Mr. Darakjian brings over 25 years of experience in senior financial roles within the retail and consumer packaged goods industry, with a successful track record of creating and implementing internal control processes, cost minimization strategies, performance improvement plans, efficient operational processes and public reporting requirements.
Mr. Darakjian is to be issued 600,000 stock options of the Company, each option to have an exercise price of $0.12 per option. 33% of the options will vest after 12 months of continuous employment, 34% after the next 12 months of continuous employment and the remaining 33% after the next 12 months thereafter of continuous employment.
Kyle Appleby Resigns as Chief Financial Officer
After 8 years with the Company, Kyle Appleby he has decided to resign from his position as Chief Financial Officer to pursue other opportunities. We thank Kyle for all his commitment, hard work, and dedication to the Company.
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 5,000 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:
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 thatsuch 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.
