EARTH ALIVE REPORTS SECOND QUARTER 2018 RESULTS
Montreal, Canada, August 28th 2018— Earth Alive Clean Technologies Inc. (CSE: EAC) (“Earth Alive” or the “Company”), a Canadian soil health company, developer and manufacturer of state-of-the-art microbial technology-based products for sustainable agriculture, infrastructure and maintenance today reported its financial results for the second quarter 2018. All amounts are in Canadian dollars unless otherwise indicated.
Second Quarter 2018 Financial Results
- Revenues for the quarter totaled $321,345 compared to $65,588 for the same period in 2017.
- Gross margin of $69,272 (22%) compared to $3,800 (6%) for the quarter ended June 30, 2017.
- Operating loss of $558,505 and Net loss of $718,869 for the quarter ended June 30, 2018 compared to an Operating Loss of $635,737 and Net loss of $636,646 for 2017, which includes a non-cash financial expense of $160,480 ($1,488 for 2017) incurred in connection with the convertible debentures outstanding.
Second Quarter Highlights
- Launched the Clean Fiber Initiative, a collaborative research project to improve the production of natural fiber crops in Canada and around the world
- Commenced the second and decisive phase of the Soil ActivatorTM site revegetation trials at Tata Steel Schefferville, Québec, a division of the Tata Steel Group, one of the world’s top ten steel producers in the world – outcomes of this program are far reaching and may have important potential economic, environmental and health consequences for mining companies and the communities in which they operate
- EA1TM Dust Supressant selected as a finalist in the 2018 Green Latin America Awards
- Signed an exclusive distribution agreement with The Growers Wholesale Ltd. for the commercialisation of Dr. Marijane Root Probiotic in the United Kingdom, representing sales of $248.000 USD over a 12-month period.
- Over 67% of the sales were to repeat clients.
“Looking at our historic quarterly sales curve, Q2 sales are as expected,” said Chief Executive Officer Michael Warren. “We continue to make significant progress since the beginning of the Company’s restructuring process. We are contending with considerable challenges including unexpected fluctuations in the cost of raw materials used and reimbursements on financial obligations, which were necessary to the Company’s survival, restructuring and relaunch. The entire Earth Alive team is focused on developing sales in their respective capacities and are working diligently towards sustainability and profitability.”
We entered into Q3 with an unmatched momentum.
- Signed a distribution and commercialization agreement with a Beijing-based Company for the purchase of Earth Alive’s microbial cleaning product RapidAllTM, representing sales of $580,000 over a 12-month period.
- Numerous agro-holding corporations are joining our Mocha and Clean Fiber Initiative.
- Earth Alive agronomists in Latin America have been able to complete trials and demonstrations with local universities and research groups that farmers look to for advice on best practices.
- Increased demand for the Company’s Dr. Marijane line as we approach the legalization of cannabis in Canada date, October 17, 2018, with both the licensed producers and the retail hydroponic distribution for the upcoming “grow your own” market.
- Actively marketing products, such as RapidAllTM, that are part of our portfolio and for which we have patents, but that were not previously offered.
- We continue to collaborate with numerous groups that we met at DisruptMining 2018 (February) about our EA1 dust suppressant, with the objective of implementing full-scale projects on mine sites in the near future.
Looking back at the first half of 2018, we are on track with our restructuring plans that were developed in collaboration with employees, management and Earth Alive’s Board of Directors. We remain optimistic that Earth Alive is on the right path towards sustainability and value creation.
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