Earth Alive Clean Technologies Inc. (CSE:EAC) announces the filing of its quarterly financial statements for the period ending September 30, 2019.
Earth Alive Clean Technologies Inc. (CSE:EAC) (“Earth Alive” or the “Company”), a Canadian soil health company announces the filing of its quarterly financial statements for the period ending September 30, 2019. This press release should be read in conjunction with the Unaudited Financial Statements and Management’s Discussion and Analysis (MD&A) for the nine months ended September 30, 2019 which are available on Earth Alive’s website at www.earthalivect.com and on SEDAR at www.sedar.com. All amounts herein are in Canadian dollars unless otherwise stated.
Financial Highlights from Q3-2019:
- Revenues of $1,048,908 for Q3-2019; up 241% compared to prior year’ quarter of $306,891.
- YTD revenues for the nine-month period of $1,520,060; up 29% from prior YTD of $1,081,966.
- Operating Loss of $582,202 for Q3-2019 (compared to $997,585 for Q3-2018) and Net Loss of $855,456 (compared to $1,133,153 for Q3-2018).
- 87% of sales during the quarter ($914,292) were from Earth Alive’s proprietary EA1, 64% YTD, generating a first profit for the Infrastructure & Maintenance reporting segment of $69,732.
“We are happy to report on Earth Alive’s strongest sales quarter yet, with sales of $1,048,908 and a first profit for the Infrastructure & Maintenance division. Earth Alive’s proprietary EA1 dust suppressant is gaining important market recognition and we expect to build on this momentum. Few products out there can tackle dust emissions on a large scale, in an environmentally friendly and sustainable way, all the while substantially reducing water waste like EA1” stated Michael Warren, President & CEO, and added “ We also remain positive on the outlook for the agricultural division; sales were slightly weaker than those of the prior year, with $548,510 YTD compared to $750,580 YTD 2018, in part due to the important flooding in Peru and the Corporation’s limited resources, but we see this as picking up in the short term.”
Corporate Highlights during Q3-2019
- The 590.702 litres of EA1 (representing 28% of the $2.6M order placed in 2019) were delivered and the products is now being used at the client’s Latin America mining operations until Q2-2020.
- Earth Alive entered into a trial agreement with a mining company to conduct a 20.000 m2 test application of EA1 Dust Suppressant at one their mines located in southern Africa, representing sales of C$126,000 for delivery in Q4-2019.
- The conditional approval of the TSX Venture Exchange for the listing Earth Alive’s common shares and the warrants issued under the prospectus was obtained. The Corporation anticipates announcing the effective date of the transfer to the TSXV in the coming days.
“We are also very pleased that the holders of the Corporation’s secured convertible debentures all agreed to convert their debentures into common shares of Earth Alive. By eliminating this secured debt from our balance sheet and presenting a stronger financial position, we expect that potential customers and business partners will be more likely to invest time and money in the product adoption process and will seek to build long term relationships with Earth Alive. Adding new users is key to building a strong client base for the Corporation’s products and as the sales cycle is a lengthy process requiring sustained efforts and support, namely during the trial process, any uncertainties as to the long-term viability of the Corporation were an important barrier to business development. With a clean balance sheet and adequate funding, we can now move ahead with our strategic plan and fully focus on to the growth of the business” stated Michael Warren.
Subsequent Events to Q3
- Earth Alive completed its short form prospectus offering October 28, 2019, raising gross proceeds of $4,000,000.
- Holders of the Corporation’s 15% secured convertible debentures agreed to convert their debt in the aggregate amount of $3,529,885.26 (including accrued interest) in exchange of 35,298,851 common shares.
- An additional 255,552 litres of EA1 were delivered to a client’s Latin America mining operations (representing 12 % of their $2.6M order placed in 2019 and a balance of approximately 1,265.745 liters to be delivered in Q1 and Q2-2020).
- The trials for EA1 at a client’s South African operation have commenced in November 2019.
- A distribution agreement was entered with Hawthorne Canada Ltd., a subsidiary of The Scotts Miracle-Gro Co., for the sale of Dr. Marijane biofertilizer. Hawthorne has an extensive distribution network within Canada with 12 seasoned sales specialists having an in-depth understanding of the sales channels for over 500 retailers.
About Earth Alive Clean Technologies
Earth Alive aims to be a key player in world markets of environmentally sustainable industrial solutions. The Company works with the latest innovations in microbial technology to formulate and patent innovative products that can tackle the most difficult industrial challenges, once only reserved to environmentally harmful chemicals and additives. The Company is focused on environmental sustainability in the agriculture industry and dust control for the mining industry. For additional company information, please visit: www.earthalivect.com.
Forward-Looking Information: Certain information in this press 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 regarded as a guarantee of future events, performance or results, and will not necessarily be an accurate indication of whether, or the times at which, such events, performance or results will be achieved. All of the information in this press 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.