LA VEGAS, April 5, 2022 /PRNewswire/ — Alkame Holdings, Inc. (OTC PINK: ALKM), is pleased to provide a corporate update.
With the first quarter of 2022 now over, we would like to take this opportunity to provide an update on what has happened with our business since our last corporate update for the fourth quarter of 2021.
There are several exciting and positive updates that we are happy to share with you.
As we mentioned in our last corporate update, one of our goals was to continue to reduce our corporate debt and we continue to do so. We recently settled a $500,000 + dispute over an equipment transaction for the West Salem plant. We replaced this debt with a new third party $100,000 UCC-1 assumption on equipment under our credit facility rating. We have also structured a repurchase agreement $280,000 of equipment for the West Salem facility and have already paid $100,000 towards this purchase. The remaining balance must be paid before the end of August 2022. Our corporate debt has been reduced by more than $1,000,000 this last quarter.
We continue to work hard to increase our income, which allows us to further reduce our debt from cash flow. The increased demand for co-packing and contract manufacturing line time space for food and beverages is currently playing very well for us. With line time being rare in the industry, we are in a unique position to be selective in the requests we continue to receive from small and medium-sized businesses, and even large, well-known brands. This brings us to another of our corporate goals to increase our revenue and cash position to further reduce our debt.
We made major changes to our operating model this year. We no longer act as a “bank” for our clients or customers. Previously, we purchased supplies and ingredients from our customers, which constantly strained our cash flow. Although we forego turnover, our commitment to turnover will increase as we no longer need to fund materials and ingredients for our customers. We still provide our customers with assistance in sourcing and sourcing from our vendors to purchase these items, we no longer have to shell out the money for these purchases.
At the end of last year, we created a $1,000,000 credit facility that allows us to improve our manufacturing capabilities and footprint, as well as fund all operational needs based on purchase orders. With this facility, we have been able to reduce our debt, increase our footprint, and improve our operations and production capacity.
On New Year’s Eve, we bought outdated brands of jams and jellies, Maury Island Farms Jams and Quinn’s Pepper Jellies. We have just started production and have already received orders and prepared the product for shipment. We are very excited about entering this new market segment.
We are looking to increase our production space at the West Salem plant to expand our hot pack capabilities to complement both our Bell Food & Beverage plant and to accommodate the influx of business we are receiving currently for hot-packed products. After a lot of hard work and investment, this facility started production in December 2021, and we hope to have hot packaging capabilities in this facility by the end of 2022.
We have many more great things to announce shortly, including but not limited to production and development deals with several new customers. Stay tuned.
About Alkame Holdings, Inc.
Alkame Holdings, Inc. is a publicly traded health and wellness technology holding company focused on patentable, innovative and environmentally friendly consumer products. The Company’s wholly-owned subsidiaries manufacture products with enhanced water using proprietary technology to create products with several unique properties. The organization is diligently building a solid foundation through launching and acquiring suitable business assets, and pursuing multiple applications by placing them in several emerging business sectors, such as consumer bottled water and RTD products. , household pet products, horticultural and agricultural applications, hand sanitizers and many other water-based treatment solutions for new and existing commercial platforms.
Disclaimer/Safe Harbor: This press release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. Statements reflect the Company’s current beliefs regarding future events that involve risks and uncertainties. These risks include, among others, the expectation that Alkame will achieve significant sales, failure to meet deadlines 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 prices. In light of these uncertainties, the forward-looking events discussed in this press release may 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.
For more information, visit www.alkameholdingsinc.com.
Alkame Holdings, Inc. Investor Relations
E-mail: [email protected]
Phone: (702) 273-9714
SOURCEAlkame Holdings, Inc.