Chai-Na-Ta: Fiscal 2000 First Quarter Results.Business Editors LANGLEY Lang·ley , Mount A peak, 4,227.9 m (14,026 ft) high, in the Sierra Nevada of southern California. lang·ley n. pl. , British Columbia--(BUSINESS WIRE)--April 28, 2000 Chai-Na-Ta Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : "CC", OTCBB OTCBB See OTC Bulletin Board (OTCBB). : "CCCFF") (the "Company") today announced financial results for its first quarter ended February 29, 2000. Revenues for the quarter increased to $8.54 million, compared to $5.07 million in the same quarter last year. Net loss for the quarter increased to $2.29 million ($0.46 fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share) from $1.56 million loss ($0.39 fully diluted loss per share) in the comparable period a year ago. Of the $780,000 interest and financing costs, $520,000 has been accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. which the Company expects will be reversed in a future period when the various regulatory bodies approve the restructuring plan. A further $413,000 of interest and financing costs which has been capitalized to crop costs will be reversed at that time. The total adjustment would reduce first quarter losses by $520,000 to $1.767 million. This plan has been approved by the creditors and by the shareholders. Additional financial details and U.S. equivalent figures are shown at the end of this release. Results for the first quarter reflect continuing depressed North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. prices, decreased gross margins due to the lower ginseng prices and sales mix sales mix See product mix. , and the temporary interruption of our value-added program. "Due to depressed ginseng prices and a lack of working capital, we narrowed our focus to our farm operations and set out to put a solid financial restructuring into place," said Gill. "With the new injection of capital from Road King Infrastructure Ltd. (RKIL), we can now not only continue our farm operations but restart To resume computer operation after a planned or unplanned termination. See boot, warm boot and checkpoint/restart. and pursue opportunities through our standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. extract powder program." Chai-Na-Ta will now be in the best financial position in its history, with the recent announcement that RKIL will be purchasing the positions of the Company's two major creditors, as well as forgiving $5 million in secured debt and reducing the interest on the remaining balance from 10.6% to 0%. Gill commented, "Over last year we have increased production by 25% while the number of acres planted remains static; at the same time, we have decreased production costs and overhead by 30%. Coupled with our financial restructuring, this makes us more competitive than any producer in our industry. We will be well positioned to benefit from an industry turnaround, which we expect over the next two years." Chai-Na-Ta Corp., based in Langley, British Columbia Langley, British Columbia can mean the following:
Except for historical information contained herein, the matters discussed in this press release are forward looking statements that involve risks and uncertainty, including but not limited to general business conditions and other risks as outlined in the Company's periodic filings, annual report, and Form 20-F. Such risks and uncertainties may cause actual results to differ materially from those projected.
CHAI-NA-TA CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE PERIODS ENDED FEBRUARY 29/28 2000 and 1999
(unaudited)
Three Months Ended Three Months Ended
February 29/28 February 29/28
2000 1999 2000 1999
First Quarter Summary Canadian $000 (1)US $000 Equivalents
Revenues $8,540 $5,074 $5,859 $3,329
Loss before taxes (2,287) (1,836) (1,569) (1,205)
Loss for the period (2,287) (1,564) (1,569) (1,026)
Loss per share
- basic $(0.46) $(0.39) $(0.32) $(0.26)
- fully diluted $(0.46) $(0.39) $(0.32) $(0.26)
Weighted average shares outstanding
- basic 5,026,553 4,021,553
(1)US $ Equivalents - For period ended February 29, 2000, conversion
rate used is 1.4577 (0.6860)
- For period ended February 28, 1999, conversion
rate used is 1.5240 (0.6562)
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