VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 28, 2016) - Solegear Bioplastic Technologies Inc. (the "Company" or "Solegear") (TSX VENTURE:SGB) today announced its unaudited financial results for the three months ended May 31, 2016.
The Company reports revenues of $427,667 for the three months ended May 31, 2016 compared to revenues of $5,344 for the three months ended May 31, 2015, and reports a net and comprehensive loss of $663,185 for the three months ended May 31, 2016 compared to a net and comprehensive loss of $1,274,912 for the three months ended May 31, 2015.
Solegear announced an acquisition of Ex-Tech Plastics Inc.'s bioplastic division in March 2016 and closed the transaction in May 2016. Included in the results for the three months ended May 31, 2016 is the issuance of 6,650,000 common shares to Ex-Tech Plastics Inc. to complete that transaction.
The Company had cash reserves of $421,520 at May 31, 2016 and has received $395,939.60 in non-brokered private placement proceeds and $103,761 in new loans under the WINN program from Western Economic Diversification Canada since quarter end.
In the past quarter, the Company has:
- grown its annualized projected booked sales to $2,105,000, including the addition of food safe bioplastic packaging acquired through the Ex-Tech Plastics transaction;
- launched the good natured™ brand of office organization products at 3 Canadian retailers, including London Drugs and Mills Office Productivity, using Solegear's proprietary LV1250 plant-based material; and
- announced replenishment orders for plant-based durable packaging.
"I'm very proud of the hard work and dedication of the Solegear team for this quarter's revenue growth and cost controls," said Paul Antoniadis CEO of Solegear. "The addition of Ex-Tech Plastics' bioplastic division illustrates our strategy to develop strategic partnerships and alliances as a means of accessing new market verticals rather than relying solely on organic sales to achieve our objectives."
The Company's financial statements and other disclosures are available on SEDAR.
The Company's corporate profile is located at www.solegear.ca/investors.
About Solegear Bioplastic Technologies Inc.
Solegear Bioplastic Technologies Inc. (TSX VENTURE:SGB) is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources. Committed to the principles of Green Chemistry, Solegear is driven by its mission to create healthier, safer and stronger communities by fundamentally changing the way plastics are made.
Solegear's proprietary bioplastic formulations, Polysole® and Traverse®, are designed to meet today's social and corporate requirements to lower carbon emissions, reduce waste and remove toxicity typically associated with traditional petroleum-based plastics. Together with its partners, Solegear custom engineers, produces and distributes its high-performance bioplastics as resin, sheets and finished goods with some of the highest percentages of renewable, plant-based materials currently available in the industry.
For more information: www.solegear.ca
On behalf of the Company:
Chief Executive Officer and Director
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Cautionary Statement Regarding Forward-Looking Information
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the risks that: (i) recent commercial announcements do not ultimately produce the forecasted results, (ii) the Company's sales pipeline does not convert into revenue generating customers as anticipated, and (iii) suitable growth opportunities are not identified.
When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.