Gourmet Ocean Products Inc.
TSX VENTURE : GOP

Gourmet Ocean Products Inc.

February 27, 2017 16:36 ET

Gourmet Ocean Products Announces Financial Results for the Three Months Ending December 31st, 2016

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 27, 2017) - Gourmet Ocean Products Inc. ("Gourmet" or the "Company") (TSX VENTURE:GOP) announces its financial and operating results for the three months ended December 31, 2016.

Highlights

  • During the three months ended December 31, 2016, Gourmet reported sales of $391,327 compared with $933,430 during the same period of last year. The decrease in sales was primarily as a result of a decrease in the sales of harvested sea cucumber in China.
  • Margins were maintained during the quarter as the Company achieved gross margin of 33.4% during the three month period ended December 31, 2016 compared with 33.9% in the corresponding period of 2015.
  • Dispute lower revenues, Gourmet was able to achieve an improvement in EBITDA due to the elimination of licence lease payments and overall cost control. Adjusted EBITDA for the three months ended December 31, 2016 was negative $135,756 compared with negative $302,498 during the corresponding period in 2015.
  • Net loss for the three month period ended December 31, 2016 was $219,172, compared to a net loss of $389,237 in the same period last year.

SUMMARY OF FINANICAL RESULTS

Three-Month Period Ended
(Unaudited)
12/31/2016 12/31/2015
Sales 391,327 933,430
Gross profit 130,523 316,393
Loss from operations (218,093 ) (386,205 )
Net loss (219,172 ) (389,237 )
Adjusted EBITDA (135,756 ) (302,498 )
Loss per share - basic (0.002 ) (0.003 )
Weighted average number of shares
Basic 125,068,733 125,068,733

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2016 the Company had cash on deposit in the amount of $9,461, accounts and other receivables of $2,081,967 prepaid expenses of $35,074 and inventory of $1,147,765 compared to cash on deposit in the amount of $90,233, accounts and other receivables of $1,829,390, prepaid expenses of $52,988 and inventory of $1,408,370 at September 30, 2016.

The working capital position of the Company at December 31, 2016 was $1,359,850 compared to a working capital position of $1,515,219 at September 30, 2016.

Net assets declined to $1,771,299 at December 31, 2016 compared to $1,990,471 at September 30, 2016.

About Gourmet Ocean Products Inc.

Gourmet is a B.C.-based aquaculture company specializing in the production, distribution, marketing and sale of high-quality specialty seafood products including sea cucumbers, scallops and oyster with distribution to customers primarily in Asia and Canada.

ON BEHALF OF THE BOARD

Peter Hughes, Chief Executive Officer, GOURMET OCEAN PRODUCTS INC.

Neither the TSX Venture Exchange 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 press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities by the Company to be made in the United States will be made by means of a prospectus, which may be obtained from the Company and will contain detailed information about the Company and its management, as well as financial statements.

Forward-Looking Statements

Certain of the statements made and information contained in this press release constitute forward-looking information within the meaning of applicable securities legislation. Forward-looking statements in this press release include that (a) the Company has adequate capital to grow its business and execute on its business plan, (b) continued growth in revenues is expected from contracts with aquaculture farmers and distributors and (c) Gourmet's will become a global leader in aquaculture. All information and statements which are not historical fact constitute forward-looking information and, in many cases, can be identified by words such as "proposed", "may", "will", "expect", "intend", "anticipate", "believe", "estimate", "potential", or other similar terminology. Forward-looking statements involve risks, assumptions, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements made in this press release include: products that are or become available from competitors, political and economic factors, including in China and environmental factors. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Company may vary materially from those described in this press release. Accordingly, readers are advised not to place undue reliance on forward looking information. Except as otherwise required by law, the Company does not intend to and assumes no obligation to update or revise forward looking information, whether as a result of new information, plans, events or otherwise.

Contact Information

  • Gourmet Ocean Products Inc.
    Peter Hughes
    Chief Executive Officer
    604.802.7372
    petehughes@me.com