Toronto, Ontario – August 24, 2022 (Newsfile Corp.) (Investorideas.com Newswire) SusGlobal Energy Corp. (OTCQB: SNRG) (“SusGlobal”) or (the “Company”), the developer of SusGro(TM), a revolutionary pathogen-free organic liquid fertilizer and LEADERS IN THE CIRCULAR ECONOMY(R), today announced financial results for the second quarter ended June 30, 2022 and provided an update on its operational progress.
On March 21, 2022, the Company received Building Permit No. 21 158028 00 I3 from the City of Hamilton Building Division and on March 29th the Company announced that its wholly-owned subsidiary, SusGlobal Energy Hamilton Ltd., commenced the development of its 51,535 square foot facility on 3.26 acres located at 520 Nash Road North, in Hamilton, Ontario, which includes an Environmental Compliance Approval (“ECA”) to process up to 65,884 metric tonnes per annum of organic waste into regenerative products as part of the Company’s circular economy model and continued climate change initiatives.
On June 28, 2022, the Company received Building Permit No. 21 165172 00 I3 from the City of Hamilton Building Division and on July 5th the Company announced that its wholly-owned subsidiary, SusGlobal Energy Hamilton Ltd., continues the development of its 51,535 square foot facility on 3.26 acres located at 520 Nash Road North, in Hamilton, Ontario, which includes an Environmental Compliance Approval (“ECA”) to process up to 65,884 metric tonnes per annum of organic waste. Completion of the second facility is on track and slated for Q4, 2022. This facility is expected to generate, starting in 2023, an annual revenue run rate of US$105,192,000 (CA$135,000,000), based on 12,000 metric tonnes of organic waste processing or 18.5% of the ECA capacity in the first 12 months of processing.
On July 11, 2022, the Company announced that its wholly-owned subsidiary, SusGlobal Energy Belleville Ltd., completed a Verified Emission Reductions and Removals (“VERRs”) report as part of the carbon credit development process for the Anew SusGlobal Belleville Composting Offset Project (the “Project”). This report has been submitted to the GHG CleanProjects(R) Registry, a business unit of the Standards Division of the Canadian Standards Association (“CSA”). This Project is part of the Offset Development and Marketing Agreement (the “Agreement”) with Anew Canada ULC (formerly known as Blue Source Canada ULC) (“Anew Canada”) for developed and marketed greenhouse gas (“GHG”) offset credits from the Company’s 49-acre Organic & Non-Hazardous Waste Processing & Composting Facility in Belleville, Ontario. The Agreement allows SusGlobal to monetize and realize benefits from voluntary emission reduction activities. Revenue from the monetization of the GHG offset credits is expected in Q3, 2022.
Revenue decreased by approximately 48% during the second quarter of 2022 to $110,143 compared to the second quarter of 2021 in the amount of $212,632, from decreased business as a result of changes in the customer base from the Company’s organic waste processing and composting facility.
“We continue to process municipal organic waste streams, diverting them from landfills, while producing regenerative products as part of our Circular Economy model. We have confidence in a revenue ramp up this year,” said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. “Our goal is to complete the acquisition strategy and have our second facility commence the commercialization of our proprietary organic liquid fertilizer in order to increase revenue and cash flow, maximizing shareholder value with an objective to up-list to a major exchange.”
Unaudited 2022 Second Quarter Financial Results
For the second quarter ended June 30, 2022, SusGlobal recorded:
Revenue of $110,143.
Cost of sales of $112,159.
Operating expenses of $2,013,150, comprised primarily of $627,721 of marketing expenses, $360,433 of professional fees, $189,708 of interest expense, $177,379 of total management compensation, $166,275 of stock-based compensation and $131,239 of office and administration expenses.
Net loss of $2,228,669, or $0.03 loss per share- basic and diluted.
Included in the other (loss) income for the period was a charge of $4,488,323 on the revaluation of the convertible promissory notes and a gain of $4,274,820 on extinguishment of convertible promissory note.
Adjusted EBITDA (a non-GAAP financial measure) loss of $1,450,178.
$10,458,791 in total assets and $17,760,069 in total current liabilities at the end of the second quarter.
About SusGlobal Energy Corp.
SusGlobal Energy Corp., the developer of SusGro(TM), an award winning and revolutionary pathogen free organic liquid fertilizer, is an industrial, environmental and agricultural biotechnology company focused on acquiring, developing, and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative product applications globally. It is management’s objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider and a trusted brand for the fertilizer, soil and aquaculture market, as LEADERS IN THE CIRCULAR ECONOMY(R). For more information, please visit the Company’s website at: www.susglobalenergy.com
In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Interim Condensed Consolidated Reconciliation of Non-GAAP Information” in the financial table included in this press release.
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s objectives. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, lack of sufficient financial resources; variations in market conditions, currency and our stock; the Company’s ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company’s ability to produce energy, biogas, compost or organic fertilizer from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.
SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
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