DD's 3/4 results:
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DELICIOUS ALTERNATIVE DESSERTS LTD.
ASE SYMBOL: DD
AUGUST 6, 1998
Delicious Alternative Desserts Ltd. Announces Third
Quarter 1998 Results
CALGARY, ALBERTA--Mr. Robert C. Harrison, President and C.E.O., is
pleased to report the following:
During the quarter ended May 31, 1998, Delicious Alternative
Desserts Ltd., ("DADL" or the "Corporation") entered into an
exclusive licensing agreement with Ben and Jerry's Homemade, Inc.
to manufacture, market and distribute through wholesale channels
certain Ben & Jerry's ice cream products throughout Canada. The
agreement has an initial five year term and is renewable at the
option of the Corporation for an additional five years if it is in
compliance with the licensing agreement. Ben and Jerry's is a
Vermont-based manufacturer of super premium ice cream, frozen
yogurt and sorbet products.
The Corporation has also completed its licensing agreement with
Cadbury Chocolate Canada to manufacture, market and distribute
Cadbury branded ice cream products across Canada. The broadening
of Cadbury's product line to include ice cream products represents
a natural extension of its business. This addition will strengthen
DADL's product mix and is consistent with the Corporation's
objective of securing national brands licenses.
During the quarter, DADL completed Special Warrant financings of
$6.5 million at prices of $0.30, $0.40 and $0.46 for a total of
approximately 16.8 million Special Warrants. Each Special Warrant
is convertible into one common share at no additional cost on the
completion of certain events, but in no event later than October
31, 1998. The financings will be used for construction of DADL's
manufacturing facility. Additionally, the capital will be
implemented in the marketing launch of the Corporation's ice cream
products.
For the nine months ended May 31, 1998 DADL recorded a loss of
$1,502,798, $0.0731 per common share, on sales of $2,246,399,
compared to a loss of $558,913, $0.0926 per common share, on sales
of $1,536,160 in the nine month period ended May 31, 1997. The
comparative figures include operating results for the wholly owned
subsidiaries Stoney Creek Dairies Ltd. and Frozen Cargo
Distributors Ltd., for the period October 11, 1996 to May 31,
1997, reflecting the acquisition of these companies by Delicious
Alternative Desserts Inc. ("DAD") effective October 11, 1996.
The loss for the current period was forecast by the Corporation.
Contributing to the loss are costs associated with the use of
third party storage facilities and increased transportation costs
arising out of the shut down of the Corporations manufacturing
facility. The facility has been shut down to accommodate the
$8,500,000 capital program to permit the manufacture of the
products under license. The plant is expected to be commissioned
in October.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Delicious Alternative Desserts Ltd.
Mr. Robert Harrison
President & C.E.O.
(905) 662-4934
or
Helmsdale Financial Inc.
Mr. R.H. (Dick) Pinder CA
Senior Vice-President
(403) 265-7855 ext.226
or
Helmsdale Financial Inc.
Mr. David LaFrance
Research Analyst
(416) 364-6744 ext.226
The Alberta Stock Exchange has neither approved nor disapproved of
the information contained herein.
INDUSTRY: FDR
SUBJECT: ERN
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Cheers,
Don |
