TORONTO, ONTARIO–(Marketwired – May 1, 2017) – Xylitol Canada Inc. (TSX VENTURE:XYL) (“Xylitol”) announces today that it has released its financial and operating results for the year ended December 31, 2016.
Highlights of the results include:
| Year ended December 31, | 2016 | 2015 | ||||
| Revenue | $ | 6,967,122 | $ | 8,863,994 | ||
| Gross Profit | $ | 1,200,773 | $ | 1,464,844 | ||
| Net Loss | $ | (3,423,912 | ) | $ | (3,697,804 | ) |
| EBITDA | $ | (2,627,105 | ) | $ | (2,954,472 | ) |
| Loss per share | $ | (0.18 | ) | $ | (0.20 | ) |
During 2016, the Company focused on reducing costs, satisfying legacy payables, and investigating new sources of raw materials to help increase gross margins. EBITDA for 2016 had directional improvement compared to 2015 considering that some of the restructuring efforts that were initiated mid-year started to have a fiscal impact for the remainder of the year. Note that included in the 2016 EBITDA loss of $2,627,105 are various restructuring write-downs totaling $565,803.
2017 began with the acquisition of Nektar Natural Holdings, Inc. and a $2,087,000 equity financing completed (see press release March 17, 2017). The equity financing provides further capital to the Company in addition to their US$2.5 million revolving asset based credit facility that was closed in August 2016 to fund future working capital requirements.
Nektar is a Delaware corporation operating in the United States that markets natural sweetener products including Nektar Honey Crystals in bottle form and in on-the-go packets. Nektar’s products are made from all natural cane sugar and natural honey which allows consumers to flavor foods and beverages without the mess of traditional liquid honey. Nektar’s products can complement Xylitol’s current offerings in the natural sweetener market. Nektar brings key contributors to Xylitol including national sales accounts such as Walmart and key, industry leading shareholders.
The financing, combined with the acquisition of Nektar, solidifies the Company’s continued progress in restructuring the business, refocusing the business in key strategic areas including product innovation and sales, capitalizing the balance sheet all enabling the Company to now focus its efforts on building a leading, global natural sweetener products company to promote healthier eating for families.
The full text of the Company’s interim consolidated financial statements and related management’s discussion and analysis (“MD&A”) can be found at: www.sedar.com.
About Xylitol Canada Inc.
Xylitol Canada is a consumer packaged goods business focused on an assortment of natural sweetener based products including xylitol, coconut palm sugar and honey. The Corporation operates a 30,000-square foot facility in Colorado where it produces and packages a full catalog of natural sweetener products, most notably its natural sweetener alternatives. Xylitol Canada services major retail customers such as Loblaws, Whole Foods, Costco, Trader Joe’s, Sprouts and distributors including UNFI and KeHE.
Neither TSX Venture Exchange Inc. 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.
