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New products? I thought it was the same products, but re-designed because they didn't hold up in humid weather or something funny like that.
Because this isn't the first time this product is been manufactured. The company tried to finance it, manufacture it, and sell it before. This shows how well it went when the first time around. You should really read it, there's more information after the date.
Saw a PR from CES on another board today going into the details of financing, revenue, and selling the product. It covers Walmart dropping the product and a bunch of issues. It is interesting to say the least.
Aug 16, 2006 15:10 ET
Consolidated Ecoprogress Technology Inc.: Shareholder Update
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) -
Mr. John Banks reports:
Consolidated Ecoprogress Technology Inc. (TSX VENTURE:CES) is providing an update on the company's progress.
The company is disappointed that Wal-Mart no longer carries our product but the business plan remains fundamentally sound. The company continues to move forward as all 1400 K-Mart stores are now stocking the FlushawayTM liners and pads. Over the last year the retail price of our product on a per unit basis is roughly the same if not lower than our competitors. The approximate 50% premium in retail pricing has been eliminated. Our margins have increased to approximately 20% versus 0% compared to a year ago. We are currently sourcing other retailers to carry our product and remain 100% committed to extending our distribution network worldwide.
Dr. Fresh has discussed with us the possibility of carrying FlushawayTM into other major retailers including dollar stores. Dr. Fresh currently distributes toothbrushes, toothpaste, dental floss and other consumer products to Walgreens, Costco, Rite-Aid and many others. The 3,000,000 restricted shares that Dr. Fresh received in November, 2005 is part of a 5,000,000 share remittance that carries specific sales targets and retailers. The remaining 2,000,000 shares will be released when those targets have been achieved. Dr. Fresh remains committed to FlushawayTM as our relationship is in its 3rd year.
Sales in the quarter ended June 30, 2006, were $33,530. Sales comprising of $11,145 has been delivered to Envirostar in South Africa and $22,385 were delivered to Dr. Fresh. Although there was a $120,000US licensing fee for the purchase of a territory by Highford Holdings, the revenue will be amortized over the 60 month period of the contract. For the present quarter, sales are $17,013 and an order just sent on August 4 and arriving on August 25 is for $16,692. All sales have gone to Dr. Fresh this quarter. To fulfill the request from Dr. Fresh, orders have been shipped on an as needed basis and thus partial containers have been sent. Sales are conservatively booked and a sale is only booked after product is received by the distributor which is typically about 6 to 8 weeks from production to the customer. Our outstanding accounts payable presently stands at $334,000.
Advertising has been limited to discount coupons at the shelf level by Dr. Fresh over the last 2 years. Past production problems that have limited production have since been rectified. A supply chain with secure reliable product is now in place. Dr. Fresh will begin advertising the FlushawayTM Brand in the upcoming quarter with in-store promotions followed by a larger advertising campaign. A national US cable television advertising program will be dependent on receiving the remaining $2,000,000 from the placement announced February 24, 2006.
Financing is a key component in the company's growth. The company recently received $1,000,000 from the placement previously announced February 24, 2006. With the stock price below the placement price and the recent Wal-Mart delisting, it is a possibility the balance outstanding of the placement may be cancelled. Although assurances from the placees that funds will be released, the company is committed to moving its business forward in a timely fashion. To ensure this, the company will self-impose a definitive deadline of August 25, 2006 as a cutoff for the funds. If the funds are not received by this day, we will cancel the remaining placement and the shares will be returned to treasury. The shares outstanding would decrease from 82,040,264 shares issued and outstanding down to 62,040,264 shares issued outstanding. Various finance groups have approached the company regarding alternative sources of financing should the other be cancelled. These include equity, inventory and purchase order financing.
Envirostar, our distributor in South Africa, is currently selling FlushawayTM liners and pads in floor displays that currently stock about 48 boxes of product on each stand. The product has been initially carried in pharmacies in South Africa in such areas as Benoni, Bryanston, Cramerview and others. Envirostar has approached larger retailers in that country and we await an update from those meetings. Updates for South Africa can be found on Envirostar's website www.flushaway.co.za.
SPD is our 2nd distributor in the United States. SPD recently cancelled an order due to a dispute between SPD and Ecoprogress. The dispute stemmed from production issues limiting the supply of product by Ecoprogress. Since these production issues have been resolved we expect a resumption of purchase orders from SPD. La Familia, a customer of SPD and a supplier to chains in California and Texas, was on hold as a result and was cancelled. SPD has approached various retailers and updates will be made when available.
Tempo Sales has approached various retailers in Canada. Ecoprogress expects to have product in Canadian stores in the 4th quarter of 2006. Distributors have also met with us to distribute our product in Canada as well.
Highford Holdings Ltd., our recent distributor in China, is expected to be sent product this quarter. A full container has already been paid for in advance. Chinese translation of the packaging has been completed. The product sizes have been defined and production is underway.
Ecoprogress Australia Pty Ltd., a separate entity from the company, has almost completed its website. A sales force is already established and we are presently awaiting a purchase order. Updates on a purchase order will be made when available.
Distributors and brokers such as J.A.M. South America, Femefresh for the Caribbean region and Sookochoff Consultants in the Philippines remain unchanged. No purchase orders have been received to date from these sources.
After due diligence into patents, patents pending and the design of products, we have ceased negotiations regarding the proposed alliance with TTI out of North Carolina. Ecoprogress has recently been working closely with QuarTek out of North Carolina. With world expertise in the field of nanotechnology, QuarTek is acting as the research and development arm of Ecoprogress. They are researching, developing and designing additional applications to enhance our patented and patent pending technologies including flushable inserts into diapers and flushable inserts into adult Incontinence products. The closing of the deal with QuarTek is estimated to be complete before the end of the quarter.
Ecoprogress has almost entirely rebuilt a new business platform. All manufacturing has been moved offshore including the POP display units has lowered costs dramatically. The technical issues that hindered the manufacture of product have been resolved. An office was opened to monitor manufacturing and ensure quality control throughout the production cycle in China. New distributors have signed on and a new policy is now in place whereby a licensing fee is charged to new distributors and thus additional sources of revenue. At present, Ecoprogress is negotiating licensing fees with distributors in 4 Asian countries. By the year end, December 31, 2006, Ecoprogress expects to have distribution on store shelves in the United States, Canada, China, South Africa, and Australia. Other countries are expected as well.
We have had many challenges running the company yet we continue to strive in moving forward. I would like to thank shareholders for their support and I aim to enhance and maximize shareholder value. The business is now ready to move the next level in the present and upcoming year.
FlushawayTM pads and liners are now carried in over 1400 K-Mart locations in the US alone. The product is also available in South Africa, the US Marines Corps. world wide and soon to be in South China, Australia and Canada
Ecoprogress is diligently working on becoming a lead player in environmentally friendly, absorbent and plastic replacement products. Its first branded product, FlushawayTM, provides women with the choice of a flushable, biodegradable feminine hygiene product.
ON BEHALF OF THE BOARD OF DIRECTORS
John Banks, CEO and President
Consolidated Ecoprogress Technology Inc.
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the TSX-V and on SEDAR.
The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Please provide a link!
They're sustainable
I couldn't imagine why, lol.
Wait a minute, how do you know if Pino still owns shares or not? Pillay never disclosed the deal with Pino, which was asked of him a million times.
Very interesting indeed
I'm sure a lot of people tried that, that's why your seeing it go back down. Way too many factors right now for this to move up and stay up.
I agree, he's been right all along.
There was a LOT more than a 10 dollar trade at .0001 today, lol. Notice the 2's are small and far between. Usually at open, middle of the day, and before the close.
A 42 dollar trade to make it .0002.
Huummmmmmmmmmmmmmmm
So when is the next PR coming out, I may want to jump in, lol. Just kidding of course.
Especially when both Walmart and Kmart previously carried those items, and now carry the competitions.
At least that's an answer! Every little bit helps.
You never answered my question. What if no one ever buys the product.
Glass half full kinda guy, I like it.
And what happens if no one buys the product? It's on the shelves, and no one buys it.
Maybe you should. Start with Vietnam contracts 101
And if no one buys the product in the 90 days? And who's gonna give PYCT a line of credit?
And how will they PAY these manufacturers? Using what money?
Because a company has to prove themselves. And when they do absolutely nothing, there's very little to talk about, lol. But free L2 and posting financials should have been the first step before they launched the news, it's very easy to do.
Yeah, yeah, whatever. I can't believe this isn't over a penny yet, lol.
LOL, first of all, free L2 and getting pinksheets current should be nothing to boast about. And contracts are fine, as long as they make that payment to CES, lol. Wouldn't want the contract to get stripped like AP1 did.
Just like the revenue they'll receive from flushaway, it's aaaaaaalll on paper.
I understand that you think the blog link, and the other links somehow prove that sustainability is the most wanted thing right now, but if you look at alexa ratings, it's far from true. I think me, you and a guy at the train station are the only people looking at those links.
I think your chances of getting to 500 million were last week before the "big news" hit, and right after. People have DD'd it already.
What do these links have to do with Flushaway? Might as well link to a picture of Al Gore, lol.
Yawn. What does this have to with the fact that the company is 50 million dollars in the hole, has a horrible history, are in bad standing, and the million other reasons for banks to not give them money?
And your point is what? He has answered a few of my questions, but there are several he did not. Especially when I asked if the AS would be raised anytime in the near future.
I love how one of your sources is a blog, lol.
They did? Then CES must have made a bundle! Let's check their financials. AWWWWWWWWW, wait a sec.
I have. He seems to not want to answer several questions that I have asked. Smart though, I wouldn't put it in writing either.
Doesn't matter how many deals they have, no one bought them when they were out before.
Can you please post a link to show where you got the 90%.
Oooohhhhhhh, lol, o.k.
Sorry, but it's true. It's what they said and didn't follow through with.
How can you say for sure? They said they were working on competing against paypal as online money transfer site, that of course didn't come true. But that's what they said. How can you be sure they won't need to raise the OS to get more money for start-up?
I agree, they're already 50 million in the hole, they'll raise it sooner or later.
I thought this deal was in the works for months? Why do they continue to not take care of the simplest things?