DADL's 2nd 1/4 results:
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DELICIOUS ALTERNATIVE DESSERTS LTD.
ASE SYMBOL: DD
APRIL 30, 1999
Delicious Alternative Desserts Ltd. Announces Second
Quarter 1999 Results
CALGARY, ALBERTA--Delicious Alternative Desserts Ltd. ("DADL") is
pleased to announce its second quarter results for the period
ending February 28, 1999. The gross revenues for the six-month
period are $2,728,867. While expenses exceeded gross revenues for
the period by $3,044,236 these financial results reflect an
encouraging upward trend in revenues; and demonstrate a positive
growth trend in product demand while still appropriately
indicating the early stages of commissioning the Stoney Creek
manufacturing facility. Consumer demand for the DADL product lines
continues to exceed the manufacturing facilities capacity to
produce during the early stages of commissioning. The second stage
of commissioning will continue throughout the next fiscal quarter
and the final stage of commissioning will be complete by fiscal
year-end. The manufacturing facilities will continue to ramp up
production as demand for the DADL products continues its national
rollout.
This quarter marked the first production of Ben & Jerry's ice
cream products in Canada. The initial distribution for these Ben &
Jerry's ice cream products was focused in southern Ontario. The
market demand for the Ben & Jerry's ice cream products has
exceeded the Company's expectations. After the quarter-end, DADL's
commenced the national rollout of the Canadian-made Ben & Jerry's
ice cream products with initial distribution in Alberta and
British Columbia.
After reviewing the strong consumer response to the Ben & Jerry's
ice cream products the Company resolved to seek additional
financing to augment its working capital and to streamline the
Stoney Creek manufacturing capabilities. DADL commenced
negotiations to raise an initial target of $3.25 million, which
was exceeded with a $4.3 million financing.
The $4.3 million was comprised of two separate financings. The
first financing was a special warrant financing in which Dynamic
Small Cap Fund, Interward Capital Corporation, private individuals
and DADL employees participated. A total of $1,550,000 was raised
on this special warrant offering. Some of the funds related to
this offering were received subsequent to the end of the quarter.
Further financing, subsequent to the quarter; in the amount of
$2,750,000 was provided to DADL in debenture financing by Bank of
Montreal Capital Corporation, Royal Bank Capital Corporation and
First Ontario Labour Sponsored Fund.
In addition to expanding the Ben & Jerry's ice cream product
distribution during the third quarter DADL plans to begin the
initial manufacturing of Cadbury's ice cream products. The
national launch for these new, exciting and innovative Cadbury's
ice cream products and novelties will commence in May and June.
Internationally recognized trademarks such Caramilk (R), Crispy
Crunch (R) will be produced as ice cream products with Dairy Milk
(R), Fruit & Nut (R), and Hazel Nut (R) being produced as ice
cream novelties. These ice cream products and novelties will then
be distributed throughout Canada.
DADL will launch nationally its Mister Cookie Face ice cream
sandwich on a national rollout program. Mister Cookie Face ice
cream sandwiches are hand-size, made of soft ice cream sandwiched
between two cookie wafers.
After the quarter-end, DADL entered into a distribution agreement
whereby DADL will distribute Tropicana frozen dessert products
throughout Ontario to supermarket retailers.
During the second quarter, DADL's products were delivered to over
1,000 retail outlets in southern Ontario. So far in the third
quarter, DADL products have been delivered to over 2,000 retail
outlets in southern Ontario. To meet this increased demand for
DADL's product lines, the Company has initiated the purchase of
additional low temperature delivery vehicles. Subsequent to the
quarter end DADL has taken delivery of some distribution vehicles
and anticipates the delivery of further vehicles in order to
supply consumer demand.
The Company continues to be very encouraged by the strong market
demand for its products that exceed expectations. As distribution
has expanded beyond the initial southern Ontario base and has
broadened into Ontario, Alberta and British Columbia, consumer
response has remained very strong. Further, with the manufacturing
facility completing the commissioning of the present product lines
over the next few months, management expects a commensurate
improvement in the Company's financial performance.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Delicious Alternative Desserts Ltd.
David Murray
Chairman
(416) 364-1282
or
Delicious Alternative Desserts Ltd.
Robert Harrison
President & C.E.O.
(905) 662-4934
INDUSTRY: FDR
SUBJECT: ERN
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"DADL" - That reminds me of NASDAQ! Probably no connection....yet!
Cheers,
Don |
