HOUSTON, TX / ACCESSWIRE / June 15, 2017 / Today, David Skriloff, CEO of EPT, distributed the following state of EPT letter to EPT shareholders:
As Environmental Packaging Technologies (OTC PINK: EPTI) embarks on its next phase as a public company, I am pleased to share the news of the exciting new markets, products and growth opportunities that lie ahead.
Last week, EPT became a publicly traded company whose shares of common stock trade on the OTC PINK market under the symbol "EPTI". We have applied for an uplisting onto the OTCQB exchange, and currently expect to be approved and trading on the OTCQB in the coming days.
EPT expects to shortly announce the closing of an equity financing to meets its working capital and general corporate needs, including capital for growth. The equity financing along with the conversion of over $14 million of debt to equity prior to the merger creates the strongest balance sheet in the company's history.
EPT's income statement continues to improve as well. In 2016, EPT generated $17.3 million in revenues with an operating profit of $1.4 million. This compares to 2015 revenues of $16.2 million with operating losses of $2.0 million. The full audit for 2015 and 2016 will be released in an 8k later this week.
In 2017, both revenues and operating income continue to grow. These increases are due to the addition of new large global branded customers, expanding demand from existing customers, and growing production orders from strategic partners.
EPT has successfully completed test shipments of bitumen using its Big Red Flexitank from the tar sands in Canada to China for a Canadian bitumen producer. EPT believes its flexitanks are unique in their ability to withstand the 175° F temperature needed to make the bitumen flow. EPT believes this level of heat tolerance substantially exceeds that of competitors within the industry. In addition, approvals from both the Canadian rail lines and a transpacific steamship line was required for the transportation. As EPT is already certified by both, the approvals were quickly obtained. Production orders are now being placed and EPT expects that this will become a significant customer over the next six months.
EPT has completed several successful large-scale tests using its patent-pending LiquiRide™, and we are now seeing recurring orders for our LiquiRides for the shipment of juice in refrigerated tractor trailers across the US by two international juice and beverage companies. LiquiRides are also being used to ship orange juice concentrate in connection with EPT's largest strategic partner who is providing the global shipping services and refrigerated shipping containers.
Our strategic partnership with Synergie Canada, a logistics and shipping company based in Quebec, Canada, is showing positive results. Synergie has begun selling EPT's Big Red Flexitanks and LiquiRides™ as a transportation solution offering its customers a substantial savings on their shipping costs. Synergie has converted several of its existing customers to EPT products and Synergie is completing sales with several large new customers.
Because of such increase in business and potential for growth, EPT has begun to double the production capability in its facility in Michigan while simultaneously working on plans for a possible second production facility. Besides increasing our capacity, when and if operational, such expansion is expected to also improve EPT's profit margins. We are very excited about our prospects going forward.
Finally, EPT has launched a new website (www.eptpac.com) that provides additional information on EPT and its products.
About EPT
Environmental Packaging Technologies (EPT) (www.eptpac.com) is a publicly traded USA based global logistics company (OTC: EPTI). EPT is a pioneer in the field of flexitank manufacturing, and it is the only company manufacturing its products in the United States. EPT's flexitank is a soft sided single use container enabling bulk shipment of non-hazardous liquids. Flexitanks are considered to be the least expensive and most environmentally friendly way to ship bulk non-hazardous liquids over long distances. One flexitank can hold up to 24,000 liters of liquids.
With the introduction of its patent-pending LiquiRideTM product, EPT opened the market for
flexitanks to be utilized in 40' and 53' containers and trailers in both dry and refrigerated configurations allowing for the first time shipments of liquid requiring temperature controls.
EPT's flexitanks are used to ship a wide variety of liquids including latex and other chemicals, edible oils, wine, petroleum based products and many others. EPT provides flexitanks to shipping companies, logistics companies, manufacturer suppliers and consumer product manufacturers in more than 50 countries around the world. It has offices in the US, South Korea, the Netherlands and Argentina.
Forward Looking Statement Disclaimer
This press release contains projections and other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the contraction or lack of growth of markets in which we compete and in which our products are sold (ii) unexpected increases in our expenses, including manufacturing expenses, (iii) our inability to adjust spending quickly enough to offset any unexpected revenue shortfall, (iv) delays or cancellations in spending by our customers, (v) unexpected average selling price reductions, (vi) the significant fluctuation to which our quarterly revenue and operating results are subject due to cyclicality in the transport/ logistics industry, (vii) our inability to anticipate the future market demands and future needs of our customers, and (viii) other factors detailed in documents we file from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
For further inquiries, please contact
C-2 Partners
Bud LaCombe
Tel: +1 (310) 601-8590
Email: [email protected]
SOURCE: Environmental Packaging Technologies