Greystone Logistics Inc. (GLGI)

[tbone58x]

Reply from CEO

Yesterday I sent an email to Warren Krugger, CEO of GLGI. I inquired about the reduction in sales and salesmen that are selling the product.

I suggest others do similar - call or email Warren with questions. Another suggestion is to request an investors conference call. Does not need to be at the end of the quarterly release - I would think this can be done anytime. Anyway, here is his response:

We were buying most of the resin for one particular large customer. They started buying their much of their own pelletized resin so we lowered the price as we were buying much less resin and not having to grind granulate or pelletize the plastic. This lowers our gross revenue but also our cost of goods sold. Thus the margin stays the same on less sales but also now is a larger percentage of sales. Additionally, our efficiency initiatives continue to be implemented which are actually increasing gross margins.

On the sales front, we brought a really well qualified industry veteran on board but he didn’t produce to the goal level we set and is no longer working with us. We continue to use stocking and non stocking distributors but last year our one on one with these firms was nil due to the pandemic.

Our infrastructure is sound and pay down of debt on a rapid pace. We have numerous opportunities in front of us and I recognize the need to fill equipment.