Focusing investment on near-term projects
KAMLOOPS, BRITISH COLUMBIA – October 30, 2023 – Progressive Planet Solutions Inc. (TSXV: PLAN) (OTCQB: ASHXF) (“Progressive Planet”, “PLAN”, or the “Company”), a leader in developing CleanTech solutions for the planet, is pleased to present the following operational update:
Heffley Creek Metals and Pozzolan Property
As part of the focus on investing in near-term projects, the Company terminated its option agreement on the Heffley Creek Metals and Pozzolan Property. Retaining the property required an additional cash payment and there were no short-term prospects of generating cash flow from the property.
The company will also write down all the capitalized costs incurred on exploration of the Heffley Creek Property. This write-down will occur in the current quarter and is a non-recurring expense.
Progressive Planet has over $300,000 in the bank and a healthy current ratio. Furthermore, Progressive Planet has an unused operating line of credit with a credit limit of $2,400,000 million.
The Company’s only long-term debt is the 25-year loan procured as part of the funding used to purchase Absorbent Products Ltd. in February 2022. At the time of purchase, the principal amount of this loan was $6,970,000 as was part of $10,900,000 million in total debt procured to make the acquisition. The current balance of the 25-year loan is $6,505,000 and the company has no other bank debt.
We provide this financial position update in conjunction with the advisement that Progressive Planet has no current plans to raise money via private placement.
Cost Cutting Initiative
During the current quarter (ending October 31), Progressive Planet eliminated over $800,000 in annual recurring costs. A small amount of severance and other one-time costs were incurred in the current quarter to achieve these annual costs savings.
Research and Development
“Over the past five years, Progressive Planet has conducted a wide scope of expensive research and development initiatives targeted at developing critical low-carbon and carbon sequestering solutions from owned mineral assets and recycled glass,” says Progressive Planet CEO Steve Harpur.
Progressive Planet is narrowing its focus on commercializing three near-term to market innovations including:
- PozGlass™ 100G.
- CARBON™ Ca; and,
- CARBON™ PK.
Added Harpur, “With the legacy investment we made in our cement and AgTech labs in Kamloops, we are scaling back on third party R&D costs. By focusing our R&D efforts to one cement and two fertilizer products, paired with other strategic cost cutting efforts, we intend to fund growth in the short-term without raising new equity. We wish to assure our investors that we take shareholder dilution very seriously.”
Progressive Planet is required to release its financial results for the quarter ending October 31, 2023 by January 2, 2024. The Company intends to release the Q2 results early, and is targeting a release date of no later than December 15, 2023.
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.
This news release, required by Canadian laws, does not constitute an offer of securities and is not for distribution or dissemination outside Canada.