LAS VEGAS, NV / ACCESSWIRE / November 15, 2021 / Alkame Holdings, Inc. (OTC PINK:ALKM), a publicly traded holding company, is pleased to provide a corporate update.
"Dear valued Shareholders,
It has been a while since our last Corporate Update and we would like to take this time to provide an update of where we are as a Company, and the changes and opportunities that lie ahead of us.
Like so many other companies affected by the pandemic, we too have faced numerous challenges. With a smaller downsized team, we reduced our corporate overhead to better weather the challenges caused by the pandemic. Behind the scenes, we have made great strides towards business growth beginning with the fourth quarter of 2021 and well into next year and beyond.
The pandemic has had a significant impact in areas such as material and labor shortages, logistics, pricing, and shipping delays, all of which we have experienced. Despite these constraints, we are proud to announce that we have achieved a major Company milestone as we have completed the buildout of our new Salem facility, and after passing inspection, have met all required regulatory and compliance metrics at this new facility and as we recently announced, it is now operational. Unfortunately, we also experienced longer than expected delays which put the facility way behind schedule, leading to a major impact on our revenue stream. Thankfully, we are seeing our pipeline of business rapidly develop, and can look forward to getting back to our original growth plans as we rebuild shareholder value.
The first step in our growth plan was reducing overhead and opening our new facility. These objectives have now been accomplished.
The second step of our continuing growth plan included reducing corporate debt. We have been able to renegotiate several older financing arrangements on more favorable terms including the reduction of corporate debt including forgiveness of approximately $379,000 of accrued interest with no further accruals going forward on those notes, and conversion of approximately $179,330 of notes approximately.
The third step is revenue. The delay bringing our Salem facility online caused many problems, most important is the delay in our projected revenues. With the facility up and running, we can again focus on growth which includes a combination of organic growth from our co-packing services, and development and expansion of our own brands.
We recently announced the pending acquisition of two long established jam and jelly brands in the marketplace which generate approximately $800,000 in annual revenue. This acquisition fits nicely within our portfolio of brands and production capabilities. The acquisition is being structured as a non-dilutive transaction with no shares of stock being issued. We also plan on introducing our Cannaribbean brand in 2022. We are always open to accretive deals that will enhance shareholder value. To that end we are in discussions with several other brands and companies.
We have several significant clients that completed product development in the third quarter, and as we go through the fourth quarter, we will be commencing production. One example is Pacific Gourmet Sauces led by Celebrity Chef Shota which completed its initial production run in the beginning of October and has just advised us of a follow up purchase order for additional eight (8) truckloads of their first product with several additional products already in the pipeline.
This month we are onboarding an additional eight new clients with several more just entering the onboarding process. These clients, whether in the early development or preproduction phase will lead to significant 2022 revenues. In anticipation of this expansion in production we have recently announced the signing of a $1million line of credit for purchase order financing.
With so many good things in the pipeline being worked behind the scenes, we are gearing up for an exciting next year and beyond. Stay tuned. Lots more to come.
Chief Executive Officer"
About Alkame Holdings, Inc.
Alkame Holdings, Inc. is a publicly traded health and wellness technology holding company, with a focus on patentable, innovative, and eco-friendly consumer products. The Company's wholly owned subsidiaries manufacture products with enhanced water utilizing a proprietary technology to create products with several unique properties. The organization is diligently building a strong foundation through the launch and acquisition of appropriate business assets, and by pursuing multiple applications by placement into several emerging business sectors, such as consumer bottled water and RTD products, household pet products, horticulture and agriculture applications, hand sanitizers, and many other various water-based treatment solutions to both new and existing business platforms.
For more information, visit www.alkameholdingsinc.com.
Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that Alkame will achieve significant sales, the failure to meet schedule or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
SOURCE: Alkame Holdings, Inc.