VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 05/27/08 -- FreshXtend Technologies Corp. (TSX VENTURE: FXT) ("FreshXtend" or "the Company") is pleased to announce financial results for the quarter ended March 31, 2008 ("Q1-2008"). Highlights (which are all in US Dollars unless stated otherwise) are as follow:
- Revenue for the quarter ended March 31, 2008 was a record $778,310, a 52% increase from revenue of $513,652 achieved in the quarter ended March 31, 2007, from stronger antioxidant sales in North America and in Europe.
- Total operating expenses were $566,133 in Q1-2008, compared to operating expenses of $539,642 in Q1-2007, an increase of 5%, due mainly to higher sales and marketing costs, more than offset by higher sales in the quarter.
- The Company recorded operating income of $212,177 and net income of $165,297 in Q1-2008, compared to an operating loss of $25,990 and a net loss of $85,536in Q1-2007
- Most of the revenue generated by the Company in Q1-2008 and in prior fiscal periods was derived from the sale of antioxidant products, a proprietary blend of vitamins and minerals designed to help fresh-cut fruits and vegetables maintain their colour, texture and "just picked" taste. Pursuant to a litigation settlement, on March 31, 2008 the Company transferred its antioxidant business into two companies marketing antioxidant products worldwide (the "New Companies") and ceased directly marketing its antioxidant products. The Company became a 17% shareholder in the New Companies.
- In Q1-2008 the Company closed a private placement of $280,000; proceeds were used to settle outstanding accounts payable due to a significant shareholder. The Company also issued a secured convertible note of $600,000 to a significant shareholder. Proceeds of $500,000 towards the note were paid by the subscriber to the Company's lawyers in order to fund the Company's working capital contributions in the New Companies and for general working capital purposes. Cash balances were $275,744 at March 31, 2008, compared to $385,677 at December 31, 2007.
The information in this news release should be read in conjunction with the Company's Unaudited Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended March 31, 2008 and the Company's Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2007, which will be available at the Company's website at www.freshxtend.com and at www.sedar.com.
FreshXtend Technologies Corp.,
Trading symbol: FXT (TSX-V)
Manual Listing S & P's Industrial & Int'l, 12g (3)b Exemption: #82-2190
The statements in this news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are subject to the safe harbour created by these sections. Actual results may differ materially from the Company's expectations.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
FreshXtend Technologies Corp.
(604) 322-0487 (FAX)