LAS VEGAS, NV / ACCESSWIRE / June 11, 2019 / Alkame Holdings, Inc. (OTC PINK: ALKM), a publicly traded health and wellness technology holding company, is taking this opportunity to provide you, our valued shareholders, with an update on the progress of the Company and provide a current status on our various fronts.
The 2016 annual report has now been completed and filed on Form 10-K with the SEC, allowing us an opportunity to announce its completion, and share important events since our last corporate update as we continue our work to bring all our filings current. We value and appreciate the feedback we get from our ALKM family, and this Shareholder Update following an annual 10K report also provides us an opportunity to seek out and address many of the questions and concerns about the current state of our business.
After close of fiscal year 2018 we had started making minor changes regarding our financial team's infrastructure by bringing on a comptroller in the fourth quarter, and we are continuing to make additional changes after our most recent filing. As per our recent 8K filing, we are happy to announce that we have retained a well-respected accounting firm and backed that up against an equally impressive auditing firm, with additional infrastructure changes still to follow. These exciting changes will allow our existing financial team to focus solely on the infrastructure, costing, and manufacturing efficiencies at our Bell Food & Beverage Inc. subsidiary. We are excited about these changes, and we very much look forward to working with our newly appointed PCAOB auditors and accounting firm, who will assist and work expeditiously towards getting our filings current and up to date.
The delays in filing have caused financial strain, we can certainly say we've had our ups and downs. While it has been a challenge, we have risen to the occasion and are moving forward in a big way. We are not making excuses, but this company has certainly had its share of obstacles. First there was the Xtreme acquisition, where the paperwork and their largest deals were generating a loss. Regardless, we saw the potential in the Intellectual Property and the small manufacturing operation in Idaho, even though the bookkeeping needed an overhaul. Next came the hectic time consuming, physical move out of the Xtreme facility to a new and much larger manufacturing facility (Bell) in another state, and the accompanying infrastructure issues that came with it. It took our operations offline for several months to basically set our manufacturing equipment back up, almost starting from scratch. A lot of hard work has been, and is still going on, shoring up the situation at Bell. We are transitioning Bell from a family run business to a corporate run organization with procedures and structure being implemented and put in place. We're just beginning to come out the other side of that, adding equipment, Standard Operating Procedures, compliance, organic status, as well as changing and adding personnel to strengthen the infrastructure that will allow us to grow properly and methodically to reach the Company's full potential, and then expand. At the same time, we are having substantial growing pains from the explosion of the Cannabidiol ("CBD") industry which is still in its infancy. All the while, we continue working to bring our filings current which has also caused significant cash flow constraints on both operations and personnel while we maneuver this rocket ship itching to take off onto a much bigger and healthier direction. There is so much good stuff going on behind the scenes to grow this company, and the potential to be a powerhouse of production is within reach. The only thing, and I literally mean the only thing, holding us back is access to smart growth capital and private equity lines, and a little bit of infrastructure assistance.
Alkame, and its assortment of divisions and subsidiaries have been extremely busy since our last update.
First, in a huge turn of recent events, we would like to officially announce the formation of an Alkame Medical division. These are very exciting times for Alkame, our technology, and the very promising potential within the medical space. This newly created division is exploring, researching and testing for growth opportunities and applications within the medical, and medical / CBD sectors, utilizing its water technology as the base solution and delivery mechanism for both CBD and non-CBD related medicines. We now seek to enter and exploit our technology within the medical sector. Initial thoughts and avenues of interest for ALKM are specifically for IV bags for intravenous therapy. We've had several preliminary (and time consuming) discussions with medical and biotech organizations and groups regarding our IP and the various alliances for the application of our technology in those respected fields. Nothing definitive to report currently but this is a work in progress. This is another application we are excited to potentially apply our water technology to and finally bring to market through a joint venture with industry veterans.
We are also exploring Topical and Trans-Dermal medications or ointments applied to body surfaces such as the skin or mucous membranes to treat ailments via a large range of form factors including creams, foams, gels, lotions, and ointments. We see CBD skincare and especially facial skincare to be a growing sector both domestically and internationally, and feel the timing is right to seek out and explore potential license opportunities with Home and Beauty Aid ("HBA") manufacturers. We are looking to work with one or more companies, to create and bring to market various lines of CBD infused skin care products utilizing our technology which allows for healthier and more nourished skin by utilizing our water as the base solution and providing better absorption.
Our Alkame Pets division is in active discussions with several companies that have expressed an interest in the potential acquisition of our Pawz & Clawz trademarked brand. The brand has both CBD and Non-CBD growth potential. The sale of Pawz & Clawz would be in exchange for a small, retained equity position and our retaining the co-packing contract.
Our Alkame Aquaculture division has recently begun discussions with a potential joint venture partner for a pilot program in Oregon to test the potential for future aquaculture fish farming operations. However, we are still seeking introductions and referrals as we continue to seek the right partner to exploit this application and opportunity, but with the Company's resources fully engaged in current business opportunities, we are not currently being aggressive with this matter.
A "Powered by Alkame Technology" icon is now being featured on the labels of many new products entering the market. Our new icon is specifically being used with client's products that are utilizing Alkame as the base solution, and this form of Co-Branding and Cross-Marketing with various clients continues to thrive, especially in CBD products. A short list of some of our favorite successful brands utilizing the IP are Highdrate, EVERx, Simple, Mary's Mixers, and Black Rain, among others. There are certain clients who are not cross-marketing with us, a prime example of this would be the delicious Pacific Flavor blueberries we are getting ready to pack in July and export to Japan.
Our flagship brand and product, Alkame Water, is not down and out. It has simply had to take a backseat for a while as we focused our efforts on co-packing and cross marketing. We are now in the process re-launching Alkame Water in the near future. We have just partnered with a new distribution partner that will handle online sales of the water and distribution in both case and per bottle quantities. Launch date is expected this summer and we are very excited about re-launching.
Our Bell Food & Beverage, Inc. subsidiary is aggressively growing into a powerhouse, but still has a lot of work to be finished. Bell Food & Beverage is a water-based liquid filling manufacturer doing various products like sauces, salsas and condiments, and a whole plethora of both CBD and non-CBD drink products, filling a nice niche in the CBD manufacturing space. Two years young and with zero marketing, we have grown strictly thru methodical internal efforts and organically.
The addition of our new high-speed cold fill production line took a while to debug but was a wise investment that is starting to see the return. Due to demand, the addition of a second shift on this line is about to begin, as the availability of line time is filling up. We are still planning on adding additional pieces of equipment to increase efficiencies to better service of our clients and reduce cost.
We are looking further down the road and preparing for expansion in both our online presence and with an additional east coast facility. Online marketing and expansion plans and related domains waiting in the wings are cbdcopacker.com, westcoastcopacker.com, eastcoastcopacker.com, and bellcampus.com. We are slowly creating a new Bell Foods International website, bellfoodsintl.com behind the scenes, but that is currently taking a back seat to other priorities. The sites shopping cart is in the process of being revamped, and this will be where the shop alkame.com domain will come into play. Everything that we've been doing up until this point has been preparing us for future growth. We've done no marketing or advertising, just tweaking our production equipment and getting better efficiencies, and all this will help us when we expand.
Starting out with a small handful of clients when we started, we now have many customers, including those that are currently co-branded with the "Powered by Alkame Technology", and just under 75 new potential partners in various stages of discussion and development. All our subsidiaries walk a fine line regarding the dissemination of our client's information. We must abide by our non-disclosure agreements and are not permitted to divulge or announce customer plans or strategies. ANY disclosure on our part would be a breach of contract and open the possibility of legal actions. In addition, as a co-packer, many clients do not want it known that we are developing or producing products for them. We have built a solid relationship with our clients and have helped develop and pioneer new products right alongside of them. With all that said, we're very excited for a friend and client of ours who we assisted all the way from concept to their current success - Hemp Lifestyle. This brand not only has signed a multi-year Co-pack Agreement with us, but they themselves have just signed a landmark distribution contract covering four states and 7,000 stores. Way to Go!!
We have been slowly phasing out the imported vegetable private label business. We believe in being a well-rounded and diversified Company. We will be exploring an opportunity to pack Cherry's for export, similar to what we already do for Blueberries. Lot's more coming from Bell, so stay Tuned!
Alkame Holdings, Inc. continues to press forward with getting all filings out in sequential order, while continuing to stay strategically quiet. We are staying focused on fundamentals and building the businesses that we believe will carry us long into the future. We continue to hear from shareholders they want updates and news to come out on a more regular basis from the Company. However, on the advice of counsel and our advisers, we feel it is in the best interest of the Company to stay quiet until we are current with our filings, at which time the Caveat Emptor would be removed. The only thing holding the Company back and allowing us to grow faster are its capital constraints.
While there have been minor disputes with vendors, we expect to have these matters resolved over the next couple of months.
The Company has experienced several strains on its financial situation since funding was not available when most needed due to the delayed filing. However, due to our last filing being so delayed, and with a funding tied to that filing, the capital infusion did not occur as planned and has affected the projected numbers as we need to front load supplies for clients. We are certainly not out of the woods just yet. We were on track to hit a projected six million in revenue, but until the caveat emptier is removed the company will continue to have financial constraints and it will create financial headaches. We have been approached in the past by accredited investors who are or were shareholders and have offered funds as an alternative investment to assist the company. These investments were used as revolving equity lines of credit and or straight loans and repaid out of cash flow until the company can obtain capital from traditional financing sources after we are current.
Despite the Caveat Emptor, we are happy to report that since our last update we obtained our first traditional financing. In the latter part of the year 2018, we received a traditional revolving line of credit with extremely favorable terms. We are now in discussions about increasing the line. We are also proud to say that we are in talks for additional substantial lines of credit, as well as obtaining a purchase order financing group to assist in the front loading of materials when needed. It is still our goal and intention to pay off and retire some of our older notes that we had taken in the past out of cash flow generated. We are still on actively seeking out these types of supportive investors for discussion as we turn the corner, allowing us to grow faster and continue to provide positive corporate updates.
Recently we have received several investor inquiries asking if we are currently in merger and acquisition talks. We have been approached by multiple groups. However, as mentioned in our previous update we will not consider or entertain such talks at these low stock price levels and there is nothing to talk about or even consider until we are current in our filings. Lastly on this topic, our only focus is to get current and build the company, reduce debt, and increase revenues.
We continually seek out and entertain joint ventures or the sale of various brands that we own as we realize we cannot do it all ourselves. We can provide our technical know-how and assistance but there are many different avenues that we could enter into with the right partners and are actively seeking out those partnerships. We currently seek out and have opportunities available for our own brands, and several we plan on bringing to market shortly.
Lastly, we're proud to announce that we have a new brand that we will be launching shortly and introducing our very first product category with several SKU's for beta testing within the upcoming weeks. The brand is called "Cannarribean" and will hopefully be in the market in the next 6 to 8 weeks, we are making some final tweaks to artwork, and preparing a focus group on flavor testing, etc. We feel this brand has vast appeal and will be able to go into multiple different food and beverage categories within the CBD, hemp and THC space. Initial product launch will be online and then hopefully find the proper distribution partners to assist in a retail presence.
Alkame Holdings, Inc. wants to thank all our employees and stockholders, for your support as we continue to transform our Company into a powerhouse. Get ready for blueberry season! These are exciting times. STAY TUNED.
Robert Eakle, CEO"
About Alkame Holdings, Inc.
Alkame Holdings, Inc. (OTC: ALKM) is a publicly traded health and wellness technology holding company, with a focus on patentable, innovative, and eco-friendly consumer products. Through the Company's wholly owned subsidiary, Bell Food & Beverage Inc., a developer, manufacturer, and marketer of a variety of liquid based consumer products, such as condiments, sauces, syrups, waters, salsas, honeys, drink mixes, and a whole host of other products, with and without CBD, and utilizes the parent companies exclusive patented formula and technology for enhanced water with several unique properties as a base whenever possible. The organization is diligently building a strong foundation through the launch and acquisition of appropriate business assets, and by pursuing multiple applications to utilize its Intellectual Property by placement into several emerging business sectors, such as the growing aqua-culture industry, consumer bottled water and RTD products, household pet products, horticulture and agriculture, and medical applications, as well as many other various water treatment solutions to both new and existing business platforms.
For more information, visit www.alkameholdingsinc.com.
Alkame Holdings, Inc. Investor Relations
Email: [email protected]
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.