Stocker,
Came across this interesting news release on a competitor called Delicious Alternative Desserts (DD.AL). They make mention of a distribution agreement in Ontario for Tropicana frozen dessert products. Thought YF/Integrated had exclusive on this? There distribution channel to supermarkets and the product lines they carry seem quite impressive. They trade on Alberta at 30 cents a share.
Hmmmm, what to do with $40mill burning a whole in my wallet. What should I do???????
Yogi....
Friday April 30, 12:41 pm Eastern Time
Company Press Release
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 [NYSE:BMO - news] 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.
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 |
