Gourmet Ocean Products Inc.

Gourmet Ocean Products Inc.

August 25, 2016 16:53 ET

Gourmet Ocean Products Announces Financial Results for the Three Months Ending June 30th, 2016

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 25, 2016) - Gourmet Ocean Products Inc. ("Gourmet" or the "Company") (TSX VENTURE:GOP) announces its financial and operating results for the three months ended June 30, 2016.


  • During the three months ended June 30, 2016, Gourmet reported sales of $2,825, compared with $810,885 during the same period of last year. The decrease in sales was primarily as a result of a decrease in the sales of sea cucumber in China. The $2,825 sales were retail sales to Canadian market.

  • Adjusted EBITDA for the three months ended June 30, 2016 was negative $331,538 versus negative $326,051 during the corresponding period in 2015.

  • Net loss for the three months period ended June 30, 2016 was $408,548, compared to a net loss of $442,577 in the same period last year.

  • During the three months ended June 30, 2016, the Company collected $300,000 of its outstanding accounts receivable in cash.

  • At June 30, 2016, the Company had cash on deposit in the amount of $225,570.

  • At June 30, 2016, the Company had a short-term debenture balance totaling $1,450,036, which includes loans carried in CAD$1,400,000 and USD$40,000. Of these debentures, $1,080,036 loan was from one of related parties at an interest rate of 4% and $370,000 loan ($100,000 from a related party and $270,000 from non-related parties) had an interest rate of 12% per annum. The debentures are unsecured, non-convertible and have a maturity date of October 31, 2016.


Three-Month Period Ended (Unaudited) Change Nine-Month Period Ended (Unaudited) Change
06/30/2016 06/30/2015 06/30/2016 06/30/2015
Sales 2,825 810,885 -100% 1,938,124 4,194,071 -54%
Gross profit 1,730 172,628 -99% 737,631 879,306 -16%
Gross margin (% of Sales) 61.2% 21.3% 188% 38.1% 21.0% 82%
Net loss (408,548) (442,577) -8% (978,581) (1,461,057) -33%
Adjusted EBITDA (331,538) (326,051) 2% (723,328) (1,044,715) -31%
Earnings per share - basic (0.003) (0.004) (0.008) (0.012)
Weighted average number of shares
- Basic 125,068,733 125,068,733 125,068,733 124,924,733


At June 30, 2016, the Company had cash on deposit in the amount of $225,570, accounts and other receivables of $397,995, prepaid expenses of $4,467 and inventory of $4,208,774 compared to cash on deposit in the amount of $582,787, accounts and other receivables of $259,181, prepaid expenses of $105,949 and inventory of $3,647,856 at September 30, 2015.

At June 30, 2016, 2016, the Company maintained a strong working capital position of $2,783,134. The working capital position as of September 30, 2015 was $3,609,027.

Net assets were $3,710,632 at June 30, 2016 compared to $4,680,089 at September 30, 2015.


An economic downturn in our initial market has resulted in reduced sales and financial performance. Our strategic objective is to "right size" our organization and carefully manage our operations during current market conditions. As part of this effort we are reducing our overhead costs by moving our head office from downtown Vancouver to Richmond, while at the same time adding to our facilities, allowing us to diversify our business. We continue our efforts to diversify, both in terms of offering new products and adding new markets, particularly, North America. We are currently building a larger product platform that can provide better financial performance for investors when markets improve. There are economic and environmental risks in our business; however, given the experience of our team in this industry and the expected long term demand for seafood, management remains optimistic about the longer term prospects for the Company.

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.


Peter Hughes, President, Chief Executive Officer

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