FreshXtend Technologies Corp.
TSX VENTURE : FXT

FreshXtend Technologies Corp.

August 05, 2005 12:20 ET

FreshXtend Technologies Corp. Announces Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 5, 2005) - FreshXtend Technologies Corp. ("FreshXtend") (TSX VENTURE:FXT) announces financial results for the quarter ended June 30, 2005. Highlights (which are all in US Dollars unless stated otherwise) are as follows:

- Revenue for the quarter ended June 30, 2005 was $280,558, a 34% increase from revenue of $208,695 in the quarter ended June 30, 2004. The increase in revenue continues to be driven by sales growth from the Company's line of antioxidants.

- During the quarter, the Company entered into a ten year renewable worldwide technology license with Welch Foods Inc., owners of the brand name Welch's, under which FreshXtend will provide its technologies and processes to Welch's for the development of a range of retail fresh fruit products.

- The Company has revised its 2005 revenue outlook to an annual growth of approximately 75%, and expects total expenses to be 25% higher than in 2004.

- Total expenses in Q2-2005 were $459,041 compared to total expenses of $363,139 in Q2-2004.

- An operating loss of $178,483 was posted in Q2-2005, compared to an operating loss of $154,444 in Q2-2004, an increase in losses of $24,039.

- Net loss for the quarter ended June 30, 2005 was $178,843 compared to a net loss of $134,692in the quarter ended June 30, 2004. This represents an increase in losses of $44,151 between the two periods.

- For the six months ended June 30, 2005, the Company reports revenue of $584,315 (2004: $361,643), total expenses of $948,545 (2004: $779,795), an operating loss of $364,230 (2004: $418,152).

- The Company held cash of $293,841 at June 30, 2005 compared to cash of $391,496 at March 31, 2005.

FreshXtend also announces that it received notice from the holder of a $55,000 note requesting payment of $25,000 in cash, and exercising their right to convert the remaining $30,000 and accrued interest into shares of the Company. The $25,000 has been repaid and shares will be issued, subject to regulatory approval, at an early future date, along with shares for the previously announced conversion of a Cdn$50,000 note.

Subsequent to June 30, 2005, the Board of Directors has approved the grant of 100,000 options to the Chairman of the Company, at an exercise price of Cdn $0.15 per share. The options will have a term of five years and vest on the date of grant and 50,000 other options were cancelled.

The information herein contained should be read in conjunction with the Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended June 30, 2005, available at the Company's website at www.freshxtend.com and at www.sedar.com.

FreshXtend is a leading provider of life extension technology to the high growth Fresh Produce and Flower Industry and uses its technological leadership to pursue licensing opportunities. The Company's patented technologies naturally place produce in a state of hibernation while it is being shipped, and extends the shelf life of fresh produce, flowers and juices, thereby enabling economic distribution of premium quality vine-ripened fruit and vegetables. The Company has a network of R&D relationships, which include the University of British Columbia and focuses on building features that will appeal to FreshXtend's customers in order to gain a competitive edge in the marketplace. The Company continues to pursue licensing opportunities through grower/processor channels as a way of maximizing the distribution for its technologies.

Trading symbol: FXT (TSX-V)

Manual Listing S & P's Industrial & Int'l, 12g (3)b Exemption: #82-2190

The statements in this news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are subject to the safe harbour created by these sections. Actual results may differ materially from the Company's expectations.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

Contact Information

  • FreshXtend Technologies Corp.
    R.W. Robinson
    Director
    (604) 322-0759
    (604) 322-0487 (FAX)
    or
    FreshXtend Technologies Corp.
    Perry Lidster, Ph.D.
    President
    (604) 322-0759
    (604) 322-0487 (FAX)
    www.freshxtend.com