EARTH ALIVE REPORTS FIRST QUARTER 2018 RESULTS
Montreal, Canada, May 29th 2018— Earth Alive Clean Technologies Inc. (CSE: EAC) (“Earth Alive” or the “Company”), a Canadian Clean-Tech company, developer and manufacturer of state-of-the-art microbial technology-based products for sustainable agriculture and mining, is pleased to report its financial results for the quarter ended March 31, 2018. This press release should be read in conjunction with Earth Alive’s financial statements for such quarter and related Management’s Discussion and Analysis (MD&A) which can be found on the Company’s website www.earthalivect.com and on SEDAR www.sedar.com . All amounts referred to are in Canadian dollars.
Financial Highlights from the quarter ended March 31, 2018
- Sales of $453,730 compared to $133,303 for the quarter ended March 31, 2017;
- Gross Margin of $217,996 (48%) compared to $19,371 (14.5%) for the quarter ended March 31, 2017;
- Operating Loss of $486,244 and Net Loss of $607,519 for the quarter which includes the non cash financial expense of $121,275 incurred in connection with the convertible debentures outstanding;
- 63% of sales were generated by the Soil Activator, with Dr Marijane representing 20%, after less than one year on the market; and
- 67% of the sales were to repeat clients.
Key Developments during the quarter ended March 31, 2018
- Dr Marijane, the Company’s specially formulated cannabis biofertilizer which was launched in April 2017, is now distributed in Canada and the United States. It can be found online through US websites of Walmart, and the Home Depot. It is also available via Amazon in North America and Europe.
- Earth Alive’s EA1 Dust Supressant gained much attention when Earth Alive was invited to participate at the live event of #DisruptMining accelerator challenge at the Innovation Expo, during the Prospectors and Developers Association of Canada (PDAC) conference held in Toronto this year, where the EA1 product made it to the semi finals.
- The Board of director’s international profile was strengthened with the nomination of Mr. Ousmane Paye in March of 2018.
- The court proceedings brought by the Corporation’s former CEO were settled, putting an end to all pending court proceedings. The former CEO subsequently sold all of his shareholdings in Earth Alive to several groups of investors.
“We are pleased to report that sales for this first quarter of 2018 have already surpassed those for the year ended December 31, 2017. Sales and operations are steadily improving and we are slowly building a customer base with 67% of the orders having come from existing customers that have tried and tested our products. Although, the slow rates of adoption for innovative products in the agricultural industry have been and continue to be an important challenge, moving forward, we are gaining an in-depth understanding of the process and we expect to build on these early adopters by adding industry leaders to our client base. Furthermore, we are excited by the renewed interest in the EA1 Dust Supressant following Earth Alive’s participation at the live event of #DisruptMining, during the PDAC, where Earth Alive had the unique opportunity to connect with a large audience of mining industry executives, many of whom where surprised by EA1’s simple, environmentally friendly solution to several challenges faced by today’s mining operations. We are and will continue to develop this market as well.” stated Michael Warren, the President & Chief Executive Officer.
- In April 2018, Earth Alive entered into a distribution agreement covering the United Kingdom, with The Growers Wholesale Ltd., a strategic long term partner that has committed to a minimum annual purchase of $200,000 during the initial twelve month period.
- The first sale of Earth Alive’s EA1 Dust Suppressant following our recent relaunch of the product, was made to a leading global mining group (Q2-2018) for trial purposes.
- Groupe Lune Rouge Inc. agreed to amend the terms of the subscription agreement entered into on October 11, 2017, in regards to their second tranche investment of up to $1M as part of the secured convertible debenture financing, to allow for draws in three equal tranches over the next twelve month period. A first convertible debenture in the principal amount of $333,000 has been issued on April 27, 2018.
- Mr. Steve Saviuk joined the Board of Directors in April of 2018, bringing extensive knowledge and experience in finance, venture capital investing as well as IP and licensing strategies to the Board.
Forward Looking Information
Certain information in this news release contains forward-looking information and forward-looking statements which reflect the current view of management with respect to the Company’s objectives, plans, goals, strategies, outlook, results of operations, financial and operating performance, prospects and opportunities. Wherever used, the words “may”, “will”, “anticipate”, “intend”, “estimate”, “expect”, “plan”, “believe” and similar expressions identify forward-looking information and forward-looking statements. Forward-looking information and forward-looking statements should not be reads as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. All of the information in this news release containing forward-looking information or forward-looking statements is qualified by these cautionary statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and forward-looking statements and are cautioned not to place undue reliance on such information and statements. The Company does not undertake to update any such forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.
Earth Alive Clean Technologies Inc.,
9641 Rue Clement
Lasalle, Québec Canada
For information, please contact:
Mr. Michael Warren
(p) 438 333-1680