/NOT FOR DISTRIBUTION IN THE USA/
Improved cash position, cost controls and
continued investment in Zeolite properties reasons behind the
decision
KAMLOOPS, BC, June 4, 2024
/CNW/ - Progressive Planet Solutions Inc. (TSXV: PLAN) (OTCQB:
ASHXF) ("Progressive Planet", "PLAN", or the
"Company"), a leader in developing CleanTech solutions for the
planet, announces that the TSX Venture Exchange ("TSX:V")
has accepted its notice to proceed with a normal course issuer bid
(the "NCIB").
Normal Course Issuer Bid
The Company's board of directors believes that the market price
of the Company's common shares (the "Shares"), from time to
time, may not reflect the inherent value of the Company, and
purchases of Shares pursuant to the NCIB may represent an
appropriate and desirable use of the Company's funds. Any purchases
made under the NCIB will be made by the Company, subject to
favourable market conditions, at the prevailing market price at the
time of acquisition through the facilities of the TSX:V and other
alternative Canadian trading systems.
Pursuant to the notice, during the twelve-month period
commencing June 7, 2024, and ending
June 6, 2025, the Company may
purchase up to 5,624,847 Shares, representing approximately 5% of
its outstanding Shares as of June 7,
2024. Under the NCIB, the Company may not purchase more than
2,249,938 Shares on the TSX:V and other alternative Canadian
trading systems during any 30-day period. The Shares purchased
during the NCIB will be cancelled, reserved for issuance, or
otherwise dealt with in accordance with applicable corporate and
securities laws.
In conjunction with the NCIB, the Company entered into a normal
course issuer bid broker agreement effective June 7, 2024, the commencement date of the NCIB
(the "Broker Agreement") with a designated broker to affect
the repurchase of shares under the NCIB. Shares purchased under the
Broker Agreement will be included in computing the number of Shares
purchased under the NCIB.
Although the Company intends to purchase Shares under its NCIB,
there can be no assurances that any such purchases will be
completed.
"Our continued efforts to improve our cash position, control
expenses and invest in areas of the business that present the
strongest performance," explains Steve
Harpur, CEO, Progressive Planet, "makes us eager to resume
our share repurchases."
The following update provides the context for the decision to
pursue a share buyback.
Improved Cash Position at Year End of April 30, 2024
Progressive Planet is pleased to announce that it has grown its
cash position to more than $1.5
million as of April 30, 2024,
the last day of fiscal 2024, while carrying no balance on its
operating line of credit. With the growth in cash, the Company
invested $1 million in early April in
a cashable, one year term deposit which pays full interest after 30
days.
"I am proud of our entire team's efforts to control costs. These
efforts enable Progressive Planet to begin making excess cash work
for our shareholders," added Steve
Harpur, CEO.
Further Efforts to Control Expenses and Cash Outlays
Progressive Planet has been utilizing a market maker,
Independent Trading Group, for the past two years. The Board
decided to reallocate these resources to share buyback, given
current share prices. As a result, the market making contract has
been terminated and the Board has hired Independent Trading Group
to manage the NCIB for the Company.
"As of the end of our third quarter on January 31, 2024, Progressive Planet had
shareholder equity of approximately $12.5
million with no goodwill recorded on the balance sheet and
our shares are currently trading at below a market capitalization
of $12.5 million. Given these
conditions, the Board believes it is prudent to reduce our total
shares outstanding.," stated Harpur.
Continued Investment in Zeolite Properties
Progressive Planet is currently incurring costs of $31,000 per quarter to increase its Bromley Creek
Zeolite Mine ownership. The Company and International Zeolite have
entered into a new Amended and Restated Mining Operations and
Option Agreement which involves making two final quarterly
payments. Relatedly, Progressive Planet and International Zeolite
agreed to terminate their option agreement for the Sun Group
Zeolite Mineral Claims. Progressive Planet will convert its
existing 2.5% ownership in the Sun Group to an incremental 2.5%
ownership in Bromley Creek. After
making the two final quarterly payments required on the Bromley
Creek Mine, Progressive Planet will own 31% of the Bromley Creek
Mine.
Progressive Planet will remain the operator of Bromley Creek
Mine. The decision to cap the ownership of Bromley Mine and
terminate the option on the Sun Group is the result of several
factors, including:
- A decline in annual sales of the Company's zeolite-based
products, while sales from its 100% owned diatomaceous earth mine
increase.
- Both international cement companies which were testing
the Bromley Zeolite notified the Company they did not intend
to purchase zeolite as a Portland
cement alternative for the British
Columbia market in the short term.
- The Company has another permitted zeolite property, Z1. Zeolite
ore from this property can be transported to Kamloops at a
lower cost and the Company is continuing to pursue approval of this
zeolite as a feed additive by the Canadian Food Inspection
Agency.
- Funds currently dedicated to Bromley Creek Zeolite Mine
investment can be reallocated to Share buyback without depleting
other cash reserves.
- Based on the progression of the development of
both PozGlass and PozPyro as replacements for Portland cement, the Company is prioritizing
investment in these products versus developing natural
pozzolans.
"Bromley Creek Mine is a superb zeolite source, and we have no
intention of selling or reducing our current 31% interest," said
Harpur, "While we are currently prioritizing the NCIB and CFIA
approval of Z1 zeolite, we continue to see the value of
Bromley Creek and we will continue
to operate Bromley Creek under our
revised agreement."
Progressive Planet provides regular information for investors on
its website: progressiveplanet.com/investors/. This includes
press releases and other information about financial performance,
patents filed, and information on corporate governance.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
About Progressive Planet:
Progressive Planet Solutions, a CleanTech and manufacturing
company operating out of Kamloops,
British Columbia, is reimagining what's possible when we
prioritize our planet's health. Our expertise lies in
developing critical low-carbon and carbon sequestering solutions
using our owned mineral assets and recycled materials to create
planet-friendly products that fight climate change and protect our
planet's health.
Our C-Quester™ Centre of Sustainable Solutions is proudly
disrupting the cement, agricultural and animal care industries with
our low-carbon and CO2 sequestering efforts. Our products are
developed with the express intent of reducing carbon footprints and
improving soil health, using naturally occurring minerals and
recycled materials, and can be found in over 10,000 retail stores
across North America.
Forward-Looking Statements:
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the matters described herein including statements regarding the
NCIB and the repurchases thereunder as well as the effect of those
repurchases, statements regarding the future of the Bromley Creek
Zeolite Mine and statements regarding the development of future
products. 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.
Disclaimer:
This news release, required by Canadian laws, does not
constitute an offer of securities and is not for distribution or
dissemination outside Canada.
SOURCE Progressive Planet Solutions Inc.