Vancouver, British Columbia--(Newsfile Corp. - March 31, 2023) - Solarvest BioEnergy Inc. (TSXV: SVS) ("Solarvest" or the "Company") wishes to report that it has filed its interim financial results for the six-month period ended January 31, 2023. Solarvest's financial statements (the "Financial Statements") are prepared in accordance with International Financial Reporting Standards. Full copies of the Financial Statements, accompanying management discussion and analysis ("MD&A") and officer certifications are available on www.sedar.com.
Q2 Summary
The Company faces increasingly challenging financial and business conditions, including an inability to raise sufficient equity, equity-linked or debt financing to fully fund execution of its business plans and for the sale of its inventory and work in process.
As of January 31, 2023, the Company had cash and cash equivalents of $90,421, a working capital deficit of $1,752,397 and an accumulated deficit of $17,518,048. The Company also had a net loss of $977,398 and negative cash flows from operations of $716,328 for the six-months ended January 31, 2023. Due to limited cash flows from operations, the Company and its subsidiaries have missed making vendor and loan payments.
Due to difficult capital market conditions, the Company raised only $541,900 of a proposed $1,000,000 private placement which closed on February 7, 2023.
Debt refinancing of the Company, the raising of additional capital, and/or the trade sale of some of the Company's operations to make bulk payments to repay outstanding debt and accounts payable, if successful, would potentially alleviate any significant doubt on the Company's ability to continue as a going concern. In the event that debt and/or capital financing is unable to be secured or contemplated trade sale fail to materialize, the Company may need to resolve to other means of protecting its assets in the best interests of its shareholders, including foreclosure or forced liquidation and/or seeking creditors' protection.
Management is evaluating various alternatives to secure the necessary financing so that the Company can continue as a going concern. While the Company has been successful in obtaining financing to date and believes it will be able to obtain sufficient funds in the future and ultimately achieve profitability and positive cash flows from operations, there can be no assurance that the Company will achieve profitability and be able to do so in the future on terms favorable for the Company.
Shareholders and investors are directed to read the Financial Statements and MD&A in their entirety.
Financial Advisory Board Dissolved
As part of the Company's streamlining of its organizational structure, it has decided to dissolve its financial advisory board (the "FAB") (see the Company's news releases dated July 7 and 14, 2022) and terminated the consulting agreements with two FAB members, Richard Groome and Jerome Cliche. The Company would like thank Messrs. Groome and Cliche for their services.
About Solarvest
Solarvest BioEnergy Inc. is an algae biologics company whose production platform provides it with an extremely flexible system capable of producing numerous products from Omega 3 fatty acids to human therapeutic proteins.
For further information contact:
Claes Ellegaard
Phone: 1.514.898.3488
Email: invest@solarvest.ca
Forward-Looking Statement
This news release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-looking statements"), which are based upon our current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms or phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and "should", and similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. While Solarvest considers these factors, expectations and assumptions to be reasonable, actual events or results could differ materially from the results, predictions, forecasts, conclusions or projections expressed or implied in the forward-looking statements. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to us can be found in our current Management Discussion and Analysis, which will be filed on SEDAR and can be accessed at www.sedar.com. Solarvest cautions that the list of risk factors included in such Management Discussion and Analysis is not exhaustive. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and we disclaim any intention and assume no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/160906
