Gourmet Ocean Products Inc.
TSX VENTURE : GOP

Gourmet Ocean Products Inc.

May 26, 2016 14:23 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 26, 2016) - Gourmet Ocean Products Inc. ("Gourmet" or the "Company") (TSX VENTURE:GOP) announces its financial and operating results for the three months ended March 31, 2016.

Highlights

  • During the three months ended March 31, 2016, Gourmet reported sales of $1,001,869, compared with $1,582,872 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.

  • Adjusted EBITDA for the three months ended March 31, 2016 was negative $89,292 versus negative $422,076 during the corresponding period in 2015, an improvement of $332,784.

  • Gross margin during the three months period ended March 31, 2016 was 41.9% compared with 23.7% in the three months ended March 31, 2015. This increase was primarily due to better pricing achieved due to a change in the Chinese distributor in April 2015. Gross margin also improved due to higher retail sales prices in the domestic Canadian market.

  • Net loss for the three months period ended March 31, 2016 was $180,796, compared to a net loss of $554,571 in the same period last year, an improvement of $373,775.

SUMMARY OF FINANICAL RESULTS

Three-Month Period Ended (Unaudited) Six-Month Period Ended (Unaudited)
03/31/2016 03/31/2015 03/31/2016 03/31/2015
Sales 1,001,869 1,582,872 1,935,299 3,383,186
Gross profit 419,508 374,356 735,901 706,678
Loss from operations (173,960 ) (533,634 ) (560,165 ) (1,019,504 )
Net loss (180,796 ) (554,571 ) (570,033 ) (1,018,480 )
EBITDA (89,292 ) (477,037 ) (400,914 ) (876,260 )
Adjusted EBITDA (89,292 ) (422,076 ) (391,790 ) (718,664 )
Loss per share - basic (0.001 ) (0.004 ) (0.005 ) (0.008 )
Weighted average number of shares
Basic 125,068,733 124,827,717 125,068,733 124,827,717

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2016, the Company had cash on deposit in the amount of $57,755, accounts and other receivables of $686,131, prepaid expenses of $21,581 and inventory of $4,204,217 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 March 31, 2016, the Company maintained a strong working capital position of $3,143,826. The working capital position as of September 30, 2015 was $3,609,027.

Net assets were $4,119,180 at March 31, 2016 compared to $4,680,089 at September 30, 2015.

At March 31, 2016 the Company had a short-term debenture of $1,451,884 at an interest rate of 12% per annum. Subsequent to the period ended March 31, 2016, the $1,451,884 debenture was renewed, of which $1,081,884 (from a related party) was renegotiated at an interest rate of 4% and $370,000 (from a second related party and two arm-length parties) continues to carry an interest rate of 12% per annum. The debentures are unsecured, non-convertible and have a new maturity date of October 31, 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, President, 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
    President, Chief Executive Officer
    604.802.7372
    petehughes@me.com