KAMLOOPS, BC, Aug. 29,
2022 /CNW/ - Progressive Planet Solutions
Inc. (TSXV: PLAN) ("PLAN", "Progressive Planet" or
the "Company"), a manufacturer of agricultural,
household and industrial products whose pioneering technology turns
post-consumer glass into high-performance cement using
CO2 sequestration, is pleased to announce the
financial results of its consolidated group of companies for the
fiscal year ending April 30,
2022.
PLAN acquired Absorbent Products Ltd. ("APL") on February 18, 2022. As a result, PLAN's financial
results include the revenues and expenses of APL for seventy-two
days from February 18, 2022 to
April 30, 2022.
Highlights include the following:
- Revenue of $3,833,146 which
consisted of 72 days of revenue from APL and,
- Net loss for the year of $3,278,379
In the fourth quarter ending April 30,
2022, the PLAN Group of companies incurred certain one-time
expenses associated with the acquisition of APL including the
following:
- Non-recurring legal, accounting, appraisal and valuation
fees;
- Non-recurring financing fees;
- A non-cash expense of $1.08
million recorded for the issuance of 8.3 million
warrants (strike price of $0.36) awarded for personal guarantees on
$3 million of bank debt; and,
- An increase in the costs of sales of over $300,000 due to the write up of starting
inventory at APL at the date of acquisition as required by IFRS
accounting standards.
In addition, APL incurred substantially higher freight costs
than normal due to the rapid increase in the cost of diesel and
labour shortages in the trucking industry along with the inability
to pass on these higher costs to many customers until after the
year end.
Significant price increases were successfully implemented to
most customers after year end to address lower margins and higher
freight costs. Further details on how management addressed the
inflationary environment and the operations of APL are contained in
the MD&A which can be found at www.sedar.com.
"Progressive Planet underwent a fundamental change in the last
quarter of 2022," stated Steve
Harpur, CEO. "We purchased a business with mineral assets
that we believe are underutilized and that provide core ingredients
to make regenerative fertilizers and alternative cements from
mineral powders produced as a by-product of APL's business.
Immediately upon taking over operations, we were faced with legacy
customer relationships that were no longer profitable in the
inflationary environment we inherited. Tough decisions were made in
the short term to position the Company for better long-term growth
(and we appreciate the support of our customers through this
transition). Details of these decisions are contained in more
detail in the MD&A."
Mr. Harpur further commented, "In addition to adjusted pricing
initiatives, our focus on operational efficiencies and continued
capacity expansion efforts to meet increased demand should lay a
strong foundation for PLAN's future."
Financial results for Q1 2023 (ending July 31, 2022) will be released on or before
September 29, 2022 and will reflect
the first full quarter of consolidated operations after the
acquisition of APL.
About Progressive
Planet:
With the acquisition of Absorbent Products Ltd. in February 2022, Progressive Planet Solutions is
now a vertically integrated mineral processor which continues to
hold all the properties under development before the acquisition.
Progressive Planet Solutions also holds patent pending,
intellectual property associated with converting post-consumer
glass into a low carbon cement.
Progressive Planet Products Inc. (formerly Absorbent Products
Ltd.) is a wholly owned subsidiary and is a manufacturer of
agricultural, household and industrial products and also possesses
a portfolio of intellectual property focused on agricultural
products including its top selling product, ACTIVATED BARN
FRESH™ Poultry Litter Ammonia Control which holds a US
patent (US 11089760B2).
In addition to its legacy mineral processing business, PLAN is
developing a portfolio of proprietary solutions focused on
sequestering CO2 and minimizing the carbon footprint of
our customers.
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.
Forward-Looking
Statements:
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the matters described herein. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future. Such statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements. No assurance can
be given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including factors beyond the
Company's control. These forward-looking statements are made as of
the date of this news release.
SOURCE Progressive Planet Solutions