Agritek Bio six month results
Agritek Bio Ingredients Corporation AGK
Shares issued 23,729,514 Aug 26 close $0.26
Fri 27 Aug 99 News Release
Mr. Neil Raymond reports
On April 8, 1999, Agritek closed the sale of the majority of Agrimerica's
assets to Lucta, S.A. of Spain for net proceeds of $3-million. By the end
of the second quarter Agritek had also booked a total of $230,000 in
receivables from Lallemand from the continuing sales of Levucell.
With the Levucell and Agrimerica agreements completed Agritek consists of:
a facility in Louverne, France, which is engaged in contract manufacturing
for Rhone Merieux;
continuing payments from the sales of Levucell until 2030;
ownership of a small portfolio of agri-products; and
working capital of approximately $4-million.
While Agritek has traditionally participated in the agri-sector, the
company intends to aggressively pursue investment-quality opportunities in
technology, software or related fields.
The transactions completed over the last nine months resulted in sales
failing to $3.6-million in 1999 from $9.2-million in the first six months
of 1998. This transition also resulted in selling and marketing expenses
decreasing to $800,000 from $2-million and research and development
expenditures decreasing to $200,000 from $600,000 in the first six months
of 1998.
The company recorded a gain on the sale of the Agrimerica assets of
$200,000 as the agreement had included $800,000 of trade secrets and
goodwill. The first quarter gain on the transfer of the Levucell interests
brings the gain on the sale of operating assets to $1-million for the first
six months of 1999.
The company generated a net loss of $100,000 or one cent per share for the
first six months of 1999 versus a net loss of $700,000 or three cents per
share for the comparable period last year.
After repaying the $2.5-million 9-per-cent convertible debentures and
$200,000 of long-term debt, the company's net cash and cash equivalents
position was $3.3-million at June 30, 1999, compared with a net
indebtedness of $200,000 at the end of the second quarter of 1998.
CONSOLIDATED STATEMENT OF OPERATIONS
Six months ended June 30
(in millions of dollars)
1999 1998
Sales $3.6 $9.2
Cost of sales 2.2 5.2
Gross profit 1.4 4.0
General and
administrative expenses 1.2 1.2
Research and development
expenses 0.8 2.0
Interest, depreciation
and amortization charges 0.3 0.8
Gain on the sale of
operating assets (1.0) -
Loss before income taxes (0.1) (0.6)
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Net loss (0.1) (0.7)
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Net loss per share 1 cent 3 cents
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