SOURCE: Alkame Holdings Inc.

November 14, 2016 07:00 ET

Alkame Holdings, Inc. Shareholder Update

LAS VEGAS, NV--(Marketwired - Nov 14, 2016) - Alkame Holdings, Inc. (OTC: ALKM)

To our valued Shareholders,

All of us at Alkame Holdings, Inc. ("Alkame") (OTC: ALKM) thank you for your continued support. As CEO, I want to provide our current and prospective shareholders some important details regarding recent corporate actions and business activities.

First, we want to assure you that we take corporate compliance, disclosure and financial reporting very seriously. We are working diligently with our auditors to complete the 2015 yearend report, as well as all quarterly reports to bring us current in our reporting responsibilities. We expect to have these filed in the near future.

The reason we caught up and then fell behind again on our filings was due to unforeseen complications associated with our Xtreme Technologies Inc. acquisition. Xtreme had huge debt, no cash, and poorly crafted agreements hidden from us prior to closing, and that required an overhaul of the entire structure, and terminate certain contracts with customers to "stop the bleeding". Even with these efforts, resolving the matters took time and created a tremendous drain on Alkame's cash flow, in addition to the time and effort of senior management to turnaround and clean up the Xtreme operations. We did this because we believe the value was, is, and always will be in the water technology and patents we acquired. Management decided to focus on fundamentals and work on the Xtreme turnaround first, conserve cash flow, and cut overhead while working on the restructuring of our business model rather than expend precious financial resources to maintain our public financial reporting. These efforts are beginning to bear fruit, and we are now addressing the financial reporting needs.

We have had inquiries into why we increased our authorized stock to 5.5 billion common shares. The answer is straight forward. Our financing in the past years has been convertible debentures. These debentures mature over time and are converted into common shares. One of the clauses that is typically inserted into these types of agreements requires a large reserve of shares to be allocated to the specific holder. The reservation of these shares is tied directly to the specific debenture, and so once reserved, cannot be reallocated or issued to another debenture holder unless the specific debenture is paid off or fully converted. In our case, the shares required to be reserved far exceeded the authorized shares. To avoid legal issues, we were required to increase the authorized shares. There are also other business reasons for increasing the authorized shares. There are business opportunities that arise, which include acquisitions with synergistic companies. These are often best accomplished by using common shares as part of the acquisition formula. It provides incentive for both parties to make a smooth transition and growing the acquired operations. For these reasons, it was necessary to increase our authorized shares sufficiently that we do not have to worry about having sufficient shares for some time into the future.

While Alkame has been relatively quiet regarding public disclosure, we have always been busy working on growing our business and have made substantial progress in our growth plans. Aside from the turnaround of Xtreme, we continue to build and expand our distribution footprint for our Alkame Water line of products. We have significantly increased our sales force and representation. We've been working diligently behind the scenes, and our "Alkame Kids" water line of gallons and 4 liter sizes are now available through one of the largest natural products distributors in the country. National Distribution with Alkame is just beginning, and looking forward to improved profitability, and significantly increasing revenues.

Our "Alkame Aquaculture" division is progressing and received a big boost with the successful completion of testing the applicability of our technology. These tests provided very positive results with both a lowered mortality rate and an increased yield. These encouraging results embolden us to continue moving forward and begin applying our technology into commercial fish farming. Our leading advisor in the aquaculture space is currently exploring these opportunities.

We have completed the first phase of our planned upgrade to the existing "Pet" product offerings through the introduction of 2 new brands totaling 10 new SKU's and a much more diversified portfolio of products and services for this sector.

Finally, with Xtreme's restructuring, expenses and overhead have been dramatically reduced, and we have begun a repositioning of the company. A key part of Xtreme's new model is its entry into the "Hemp & CBD" sector, with formulations and lab work already completed. We expect the patented process of our water treatment technology to enhance the delivery system and bioavailability of the CBD for the body. One company has already announced its collaboration with us in this sector, with many more to follow in the very near future.

Alkame is very much looking forward to improved profitability, and significantly increasing revenues in 2017. Until we bring our filings current, any and all news will need to wait until the company can finish completing its reporting requirements. Rest assured there are many good things in the works for each of our subsidiaries. We believe all of these initiatives will result in explosive growth. Our business strategy has always been one of exploiting our water technology by developing multiple applications and revenue streams utilizing our existing infrastructure, and avoiding large capital investments.

In summary, our company is alive and well despite the many challenges and setbacks we have faced. We believe our business model, along with our exclusive patented technology is a great competitive advantage in the marketplace. The expertise of our employees, consultants and key industry contacts, represent strong competitive advantages for Alkame Holdings. We are evaluating numerous opportunities, which would support our model and growth initiatives. We will endeavor to keep you abreast of ongoing developments, and of course going forward, through our public filings.

Thank you again for your continued support!

Robert Eakle, CEO

About Alkame Holdings, Inc.
Alkame Holdings, Inc. is a publicly traded health and wellness technology holding company, with a focus on patentable, innovative, and eco-friendly consumer products. The Company's wholly-owned subsidiaries utilize an exclusive patented formula and technology to create water based products with several unique properties. The organization is diligently building a strong foundation through the launch and acquisition of appropriate business assets, and by pursuing multiple applications to utilize its Intellectual Property by placement into several emerging business sectors, such as the growing aqua-culture industry, consumer bottled water and RTD products, household pet products, horticulture and agriculture applications, as well as many other various water treatment solutions to both new and existing business platforms.

For more information, visit www.alkameholdingsinc.com

Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that Alkame will achieve significant sales, the failure to meet schedule or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease.

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