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Alkame Holdings Inc. Corporate UpdateApr 4th, 2022 9:00 EST
LAS VEGAS, April 04, 2022 (GLOBE NEWSWIRE) — Alkame Holdings, Inc. (OTC PINK: ALKM), is pleased to provide a corporate update.
As the first quarter of 2022 has come to an end, we would like to take this opportunity to provide an update of what has been happening with our company since our last corporate update for the fourth quarter 2021.
There are several exciting and positive updates that we are pleased 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 Facility. We replaced that debt with a new third party $100,000 UCC-1 assumption on the equipment under the terms of our credit facility note. We also structured a deal to buyout $280,000 of equipment for the West Salem Facility and have already paid $100,000 towards that purchase. The remaining balance is to be paid by end of august 2022. Our corporate debt has been reduced by over $1,000,000 this past quarter.
We continue to work hard to increase our revenues, enabling us an opportunity to further reduce our debts from cash flow. The heightened demand for Food & Beverage co-packing and contract manufacturing line time space currently plays very well for us. With line time scarce in the industry, we are in a unique situation to be selective in the inquiries that we continue to receive from small to medium size companies, to even large major household name brands. This leads us to another of our corporate goals of increasing our revenues and cash flow situation to further reduce debt obligations.
We made major changes to our operational model this year. We no longer act as the “bank” for our customers or clients. Previously, we were purchasing our clients supplies and ingredients which constantly put a strain on our cash flow. While we will forgo top line revenue, our commitment to bottom line revenue will increase as we no longer need to finance the materials and ingredients for our clients. We still provide our clients with assistance in the sourcing and procurement with our vendors for the purchasing of these items, we no longer have to outlay the cash for those purchases.
At the end of last year we established a $1,000,000 credit facility which allows us to improve our manufacturing capabilities and footprint, as well as finance any operational requirements based on purchase orders. With that facility we have been able to reduce debt, increase our footprint, and improve our operations and production capacity.
On New Year’s Eve we purchased too long-established Jam and Jelly brands, Maury Island Farms Jams and Quinn’s Pepper Jellies. We have just recently begun production and have already been receiving orders and getting product ready to ship. We are very excited about entering this new market segment.
We are looking to increase our production space at the West Salem facility to expand out hot pack capabilities to compliment both our Bell Food & Beverage Plant as well as accommodate the influx of business we are currently getting for hot packed products. After a lot of hard work and investment, this facility started production in December of 2021, and we look to have hot pack capabilities in that facility by the end of 2022.
We have many more good things in the works to announce shortly, including but not limited to production and development deals with several new clients. Stay tuned.
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.