Category: Canada

TSX- and NYSE-listed Lithium Americas (Argentina) has announced plans to redomicile from Canada to Switzerland, a move designed to enhance the company’s growth prospects and financing flexibility.

The company will operate under a new name, Lithium Argentina AG, and expects the change to take effect in early 2025, pending shareholder, stock exchange, and court approvals.

The decision follows an extensive review of the company’s corporate structure and operations, with Switzerland chosen as the most favorable jurisdiction from a legal, commercial, and strategic standpoint. The shift aims to provide Lithium Argentina with greater access to global financing markets, strengthen its proximity to European customers, and align with the company’s long-term growth objectives.

Lithium Argentina’s reorganisation into Switzerland marks a broader trend of companies emigrating from Canada as the government moves to curb Chinese influence in its mining sector, particularly with regard to lithium and rare earth elements. Two years ago, the Canadian government forced Chinese investors to divest from several lithium juniors with international assets, citing national security concerns.

Lithium Argentina’s partner in the Cauchari-Olaroz project, GFL International (Ganfeng), has entered into a three-year standstill agreement with the company. Under the terms of the agreement, Ganfeng has agreed not to acquire, directly or indirectly, a controlling interest in Lithium Argentina, except under customary exceptions.

Despite the corporate shift to Switzerland, Lithium Argentina emphasised that the change will not alter its operational focus. The company will continue to manage its flagship Cauchari-Olaroz lithium project in Jujuy province, with Buenos Aires becoming the operational headquarters for the group.

Further, Lithium Argentina has confirmed that its shares will continue to be listed on both the TSX and the NYSE under the new ticker symbol LAR. This will allow the company to maintain its North American investor base while benefiting from Switzerland’s favourable regulatory environment. Shareholders will experience no disruption in trading.

TSX- and NYSE-listed Lithium Americas (Argentina) has announced plans to redomicile from Canada to Switzerland, a move designed to enhance the company’s growth prospects and financing flexibility.

The company will operate under a new name, Lithium Argentina AG, and expects the change to take effect in early 2025, pending shareholder, stock exchange, and court approvals.

The decision follows an extensive review of the company’s corporate structure and operations, with Switzerland chosen as the most favorable jurisdiction from a legal, commercial, and strategic standpoint. The shift aims to provide Lithium Argentina with greater access to global financing markets, strengthen its proximity to European customers, and align with the company’s long-term growth objectives.

Lithium Argentina’s reorganisation into Switzerland marks a broader trend of companies emigrating from Canada as the government moved to curb Chinese influence in its mining sector, particularly with regard to lithium and rare earth elements. Two years ago, the Canadian government forced Chinese investors to divest from several lithium juniors with international assets, citing national security concerns.

Lithium Argentina’s partner in the Cauchari-Olaroz project, GFL International (Ganfeng), has entered into a three-year standstill agreement with the company. Under the terms of the agreement, Ganfeng has agreed not to acquire, directly or indirectly, a controlling interest in Lithium Argentina, except under customary exceptions.

Despite the corporate shift to Switzerland, Lithium Argentina emphasised that the change will not alter its operational focus. The company will continue to manage its flagship Cauchari-Olaroz lithium project in Jujuy province, with Buenos Aires becoming the operational headquarters for the group.

Further, Lithium Argentina has confirmed that its shares will continue to be listed on both the TSX and the NYSE under the new ticker symbol LAR. This will allow the company to maintain its North American investor base while benefiting from Switzerland’s favoruable regulatory environment. Shareholders will experience no disruption in trading.

Ethereum spot ETFs mark a historic milestone with a $332.92 million daily inflow, surpassing Bitcoin ETFs amid the ETH price surge.

The latest data from SoSoValue reveals that Ethereum (ETH) spot ETFs have recorded $332.92 million in daily net inflows as of Nov. 29, outpacing Bitcoin (BTC) spot ETFs’ $320.01 million for the first time since inception.

This development coincides with Ethereum’s price surge of over 3% in the last 24 hours, while Bitcoin showed minimal movement during the same period.

Ethereum ETF performance breakdown

The first spot Ethereum ETFs in the U.S. began trading on July 23. These ETFs, approved by the U.S. Securities and Exchange Commission, include products from well-known financial institutions like BlackRock, Fidelity and Grayscale, among others. They provide investors exposure to Ethereum’s price without needing to directly hold the cryptocurrency.

Here’s a look at how those ETFs are performing today:

• BlackRock’s iShares Ethereum Trust ETF, trading on NASDAQ, emerged as the top performer. It boasts $250.39 million in daily net inflow. The fund’s cumulative net inflow stands at $2.1 billion, with net assets of $2.5 billion.

• Grayscale Ethereum Mini Trust, listed on NYSE, recorded $3.39 million in daily inflows, contributing to its substantial cumulative net inflow of $420.15 million. The fund currently maintains a 0.35% ETH share with a market price of $33.84.

• Fidelity Ethereum Fund, on the Cboe Exchange, secured $79.44 million in daily inflows, pushing its cumulative total to $824.23 million. The fund trades at $35.88 with a 0.22% ETH share.

Bitcoin ETFs maintain strong presence

Despite being overtaken in daily flows, Bitcoin spot ETFs demonstrate strong performance. BlackRock’s iShares Bitcoin Trust ETF recorded $137.49 million in daily net inflow. IBIT’s cumulative net inflow has reached $31.74 billion, commanding a 2.51% BTC share.

Fidelity Wise Origin Bitcoin Fund, or FBTC, followed with $106.46 million in daily inflow, while Bitwise Bitcoin ETF, or BITB, secured $26.54 million.

Notably, Grayscale Bitcoin Trust showed no daily inflow, maintaining its cumulative position at -$20.52 billion.

The total value traded for Ethereum ETFs reached $313.61 million, while Bitcoin ETFs recorded a higher volume of $2.51 billion. The cumulative total net inflow stands at $573.32 million for Ethereum ETFs and $30.70 billion for Bitcoin ETFs.

The first spot Bitcoin ETF was approved and launched in Canada by Purpose Investments. It began trading on the Toronto Stock Exchange (TSX) under the ticker BTCC on Feb. 18, 2021. This was a significant milestone, as it marked the world’s first-ever ETF directly holding Bitcoin.

In the U.S., however, the SEC has not yet approved a spot Bitcoin ETF as of November 2024. The U.S. market currently only has futures-based Bitcoin ETFs, which started with the ProShares Bitcoin Strategy ETF (BITO) in October 2021.

This section is

Partnership Content supplied

by GlobeNewswire

Author of the article:

GlobeNewswire

Published Nov 29, 2024  •  15 minute read

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CALGARY, Alberta, Nov. 29, 2024 (GLOBE NEWSWIRE) — High Arctic ‎Overseas Holdings Corp. (TSXV: HOH) (“High Arctic Overseas” or the “Corporation”) has released its first quarterly financial and operating results following the completion of a Plan of Arrangement (the “Arrangement”) that on August 12, 2024, resulted in the separation of the North American and Papua New Guinea (“PNG”) energy services businesses of High Arctic Energy Services Inc. (“HWO”), with the North American business continuing to be operated by HWO, and the PNG business being operated by the Corporation. The Corporation’s unaudited consolidated financial statements (the “Financial Statements”) and management’s discussion & analysis (“MD&A”) for the three and nine months ended September 30, 2024, will be available on SEDAR+ at www.sedarplus.ca. All amounts are denominated in United States dollars (“USD”), unless otherwise indicated.

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On August 12, 2024, in conjunction with the completion of the Arrangement transaction:

• HWO transferred all of the outstanding ordinary shares of High Arctic Energy Services Cyprus Limited (“HAES-Cyprus”), the subsidiary that owned and operated HWO’s Papua New Guinea energy services business, to the Corporation;
• Each shareholder of HWO received as consideration, one quarter of one (1/4) common share of the Corporation and one quarter of one (1/4) post-Arrangement common share of HWO, for each pre-Arrangement common share of HWO held;
• The Corporation became a reporting issuer in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan and was listed on the TSX Venture Exchange (“TSXV”), and
• HWO retained its interest in the existing North American energy services business and remained listed on the Toronto Stock exchange and continued trading under the trading symbol HWO.

The common shares of the Corporation began trading on the TSXV on August 16, 2024 under the trading symbol HOH.

Mike Maguire, Chief Executive Officer commented on the Corporation’s third quarter 2024 financial and operating results:

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“I am very pleased to have completed the strategic re-organization of High Arctic Energy Services Inc. in quarter 3. Spinning out the PNG business to shareholders under this new reporting entity High Arctic Overseas Holdings Corp. listed on the TSX Venture Exchange, realizes a key 2024 objective for the benefit of both entities.

The Corporation is now well placed, with access to adequate working capital, ideal equipment for the challenging PNG environment, focused management and a dominant market position. We are heartened by the recent public statements of key LNG development participants of positive intentions to advance projects in PNG over the coming years. I am excited about our prospects to play a strategic role servicing the major projects anticipated in PNG over the second half of the decade.

In the meantime, we have curtailed non-essential expenditures and pursue growth and diversity in our core service offerings which currently includes equipment rentals and manpower services.” 

2024 THIRD QUARTER HIGHLIGHTS

• Completed the Arrangement transaction with the Corporation’s common shares trading on the TSXV under the trading symbol HOH.
• Progressed post-reorganization transitional arrangements towards establishing dedicated stand-alone leadership of the Corporation.
• Exited the quarter with a strong liquidity position with a working capital balance of $18.5 million which includes a cash balance of $14.9 million and no debt.

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2024 THIRD QUARTER RESULTS

• Drilling rig 103 remained suspended and drilling rigs 115 and 116 remained cold-stacked. Manpower services and rental services continued with other customers. Operating margins increased from 29.5% in Q3 2023 to 36.8% in Q3 2024, support and management workforces were resized to realign with the reduced drilling activities during the quarter. The net result was a substantial reduction to revenue and the generation of negative EBITDA in the quarter:
  • Revenue for the quarter of $2,891, a decrease of $9,629 or 77% compared to Q3 2023 at $12,520, and
  • Adjusted EBITDA of ($344), a decrease of $3,259 or 112% compared to Q3 2023 at $2,915.
• The reduced revenue generating activities in Q3 2024 combined with higher general and administrative expenses relating to the completion of the Arrangement transaction drove the following results for the Corporation:
  • Net loss of $1,421 in Q3 2024 compared to a net loss of $11,946 realized in Q3 2023 which included an impairment charge of $15,200.

2024 YEAR TO DATE RESULTS

• Drilling Rig 103 operated through to Q2 2024 when drilling was suspended at which point it was cold stacked. Manpower services and rentals with other customers continued at similar run rates through the entirety of Q3 2024. Operating margins were improved from 2023 of 33.6% to 38.7% in 2024 as a result of reduced material and supply costs and proportional contribution from higher margin rentals.
  • Revenue for the first nine months of 2024 was $21,654, a reduction of $9,193 or 30% compared to the same period in 2023, and
  • Adjusted EBITDA for the first nine months of 2024 was $4,846, a 41% reduction compared to the same period in 2023.
• The reduced operating activities combined with higher general and administrative expenses resulting from the Arrangement transaction, as noted above, drove the following results for the Corporation:
  • Net income of $1,051 for the first nine months of 2024 compared to a net loss of $10,530 for the same period 2023, which include an impairment charge of $15,200.

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Since the Corporation and HAES-Cyprus were both wholly-owned by HWO, the transfer of all of the outstanding ordinary shares of HAES-Cyprus to the Corporation was deemed a common control transaction. The Corporation’s Financial Statements are presented under the continuity of interests basis. Financial and operational results contained within this press release present the historic financial position, results of operations and cash flows of HAES-Cyprus for all prior periods up to August 12, 2024, under HWO’s control. The financial position, results of operations and cash flows from April 1, 2024 (the date of incorporation of the Corporation) to August 12, 2024, include both HAES-Cyprus and the Corporation on a combined basis and from August 12, 2024, forward include the results of the Corporation on a consolidated basis upon completion of the Arrangement.

For reporting purposes in the Financial Statements, the MD&A and this press release, it is assumed that the Corporation held the PNG business prior to August 12, 2024, and as such, information provided includes the financial and operating results for the three and nine months ended September 30, 2024, including all comparative periods.

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In the above results discussion, the three months ended September 30, 2024 may be referred to as the “quarter” or “Q3 2024” and the comparative three months ended September 30, 2023 may be referred to as “Q3 2023”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates. Additionally, the nine months ended September 30, 2024 may be referred to as “YTD” or “YTD 2024”. References to other nine-month periods ended September 30 may be presented as “YTD 20XX” with XX being the year to which the nine-month period ended September 30 commentary relates

THIRD QUARTER 2024 SELECT FINANCIAL AND OPERATIONAL RESULTS OVERVIEW

	Three months ended Sept 30,			Nine months ended Sept 30,
(thousands of USD except per share amounts)	2024	2023		2024	2023
Operating results
Revenue	2,891	12,520		21,654	30,847
Net income (loss)	(1,421)	(11,946)		1,051	(10,530)
Per share (basic and diluted) (1)	($0.11)	($0.96)		$0.08	($0.85)
Operating margin (2)	1,064	3,693		8,376	10,379
Operating margin as a % of revenue (2)	36.8%	29.5%		38.7%	33.6%
EBITDA (2)	(365)	2,888		4,846	8,236
Adjusted EBITDA (2)	(344)	2,915		4,862	8,281
Adjusted EBITDA as a % of revenue (2)	(11.9%)	23.3%		22.5%	26.8%
Operating income (loss) (2)	(1,036)	1,027		1,719	2,335
Per share (basic and diluted) (1)	($0.08)	$0.08		$0.14	$0.19
Cash flow from operations:
Cash flow from operating activities	1,219	1,926		9,864	2,775
Per share (basic & diluted) (1)	$0.10	$0.15		$0.79	$0.22
Funds flow from operating activities (2)	(630)	2,428		4,103	7,344
Per share (basic & diluted) (1)	($0.05)	$0.20		$0.33	$0.59
Capital expenditures	57	482		590	987
				As at
(thousands of USD)				Sept 30, 2024	Dec 31, 2023
Financial position:
Working capital (2)				18,508	20,335
Cash and cash equivalents				14,858	10,958
Total assets				35,213	43,374
Shareholder’s equity				29,175	33,112
Per share (basic) (1)				$2.34	$2.66
Per share (fully diluted) (1)				$2.34	$2.66
Weighted average common shares outstanding (000’s) (1)				12,448	12,448
Weighted average diluted shares outstanding (000’s) (1)				12,448	12,448

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^{(1) For the purposes of computing per share amounts, the number of common shares outstanding for the periods prior to the Arrangement is deemed to be the number of shares issued by the Corporation to the shareholders of HWO upon completion of the Arrangement. For the period after the Arrangement, the number of shares outstanding in the computation of per share amounts is the total issued shares of the Corporation on August 12, 2024, and any common shares issued subsequent to August 12, 2024. See the “Overview” section of the Corporation’s Q3 2024 MD&A and the Corporation’s Financial Statements as at September 30, 2024, and for the three and nine months ended September 30, 2024 and 2023 for additional details.
(2) Operating margin, EBITDA (Earnings before interest, tax, depreciation, and amortization), Adjusted EBITDA, Operating income (loss), Funds flow from operating activities and Working capital do not have a standardized meanings prescribed by IFRS. See “Non IFRS Measures” in the Corporation’s Q3 2024 MD&A for calculations of these measures.}

Operating Results

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	Three months ended Sept 30,		Nine months ended Sept 30,
(thousands of USD, unless otherwise noted)	2024	2023	2024	2023
Revenue	2,891	12,520	21,654	30,847
Operating expense	(1,827)	(8,827)	(13,278)	(20,468)
Operating margin (1)	1,064	3,693	8,376	10,379
Operating margin (%)	36.8%	29.5%	38.7%	33.6%

^{(1) See “Non-IFRS Measures” in the Q3 2024 MD&A for calculations of these measures.}

Revenues for Q3 2024 were $2,891 compared to $12,520 for Q3 2023. Revenues in the nine months of 2024 decreased by $9,193 or 30% compared to 2023. Revenues for both the three and nine months ended September 30, 2024, were impacted as a result of reduced overall utilization of Rig 103. Customer-owned Rig 103 was utilized for 8 months of 2023 versus 5.5 months in 2024. In both periods, a consistent level of activity was contributed from the provision of skilled personnel for key customers in PNG. Operating margin as a percentage of revenues increased significantly in 2024, largely as a result of reduced material and supply costs associated with the recommencement of Rig 103 during fiscal 2023 and a higher proportional contribution by higher margin rentals.

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The Corporation owns two heli-portable drilling rigs (Rigs 115 and 116) which remain preserved and maintained ready for deployment.

Liquidity and Capital Resources

	Three months ended Sept 30,		Nine months ended Sept 30,
(thousands of USD)	2024	2023	2024	2023
Cash provided by (used in) operations:
Operating activities	1,219	1,926	9,864	2,775
Investing activities	(57)	(482)	(590)	(987)
Financing activities	(5,128)	(178)	(5,374)	(535)
Increase (decrease) in cash	(3,966)	1,266	3,900	1,253

(thousands of USD, unless otherwise noted)	As at Sept 30, 2024	As at Dec 31, 2023
Current assets	24,399	30,090
Working capital (1)	18,508	20,335
Working capital ratio (1)	4.1:1	3.1:1
Cash and cash equivalents	14,858	10,958

^{(1) See “Non-IFRS Measures” in the Q3 2024 MD&A for calculations of these measures.}

Liquidity and Capital Resources
Cashflows from Operating Activities
For the three and nine months ended September 30, 2024, cash generated from operating activities was $1,219 (Q3 2023 $1,926) and $9,864 (YTD-2023 $2,775), respectively. The change in operating cash flow was largely driven by a net cash inflow from changes in working capital.

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Cashflows from Investing Activities
During the three and nine months ended September 30, 2024, the Corporation’s cash used in investing activities was $57 (Q3 2023 $482) and $590 (YTD-2023 $987) respectively. Cash outflows associated with investing activities were directed towards capital expenditure on rental equipment. The reduction in capital expenditures in 2024 is due to reduced customer activity. The Corporation will continue to seek opportunities to invest in additional capital assets, in particular where it can do so under take-or-pay agreements.

Cash flows from Financing Activities
During the three and nine months ended September 30, 2024, the Corporation’s cash used in financing activities was $5,128 (Q3 2023 $178) and $5,374 (YTD-2023 $535) respectively. Excluding the impact of a $5,000 dividend paid by HAES-Cyprus to HWO prior to the completion of the Arrangement transaction, cash outflows associated with finance activities were directed towards lease obligation payments.

Outlook
Papua New Guinea possesses substantial deposits of natural resources including significant reserves of oil and natural gas and has emerged as a reliable low-cost energy exporter to Asian markets, particularly for liquefied natural gas (“LNG”). A significant investment in the country’s oil and gas industry was evidenced by the successful construction of the PNG-LNG project in 2014, with the primary partners in the venture being customers of the Corporation. In the period following, the Corporation’s predecessor company committed to the purchase and upgrade of drilling rigs 115 and 116 and expansion of the Corporation’s fleet of rentable equipment including camps, material handling equipment and worksite matting. These investments contributed to a substantive lift in revenues and earnings as PNG enjoyed its highest period of exploration and development activity.

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Since the onset of COVID-19 in early 2020, there has been a substantive reduction in drilling services in PNG. This follows some consolidation among the active exploration and production companies and evolving political and economic influences. In the longer term, HOH believes PNG is on the precipice of a new round of large-scale projects in the natural resources sector. ‎The Papua ‎LNG project headed up by French super-major TotalEnergies is anticipated to be the next major project and is now targeting a final investment decision in 2025. There is an expectation for increased drilling activity through the latter half of this decade, ‎not only to develop wells for the supply of gas to the Papua-LNG export facility, but also to explore for and ‎appraise other discoveries. The signing of a fiscal stability agreement between the P’nyang gas field joint venture and the government of PNG is another positive signal for that expansionary project to follow Papua-LNG.

The Corporation is strategically positioned to support these developments, given its dominant position for drilling and associated services in PNG, existing work relationships with the operating companies, and proximity to the proposed sites of operation. The Corporation’s drilling rigs 115 and 116 are portable by helicopter and have been maintained and preserved for future use.

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There are a number of other petroleum projects and substantive nation-building projects including infrastructure, ‎electrification, telecommunications and defense projects planned for the development of PNG. ‎These ‎projects will require access to transport and material handling machinery, quality worksite and temporary ‎road mats and a substantive amount of labour including skilled equipment operators, qualified tradespeople and engineers, ‎geoscientists and other professionals. ‎HOH’s business continues to position itself to be a meaningful supplier of services, equipment and manpower for this market.

The outlook for the Corporation’s core business in PNG for the remainder 2024 and into 2025 remains subdued. As previously disclosed, results were impacted by the completion of customer drilling activity during the second quarter of 2024, with Rig 103 being relocated to the customer’s forward base location and cold-stacked. With no near-term drilling activity currently anticipated, the Corporation expects equipment rental and manpower to be the primary revenue generating activity with revenues consistent with Q3 2024 for the fourth quarter of 2024 and into 2025.

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The Corporation remains engaged with its principal customer on planning for future drilling activity, and continues to focus on enhancing and optimizing its existing rental fleet deployment and manpower solutions offerings.

The Corporation also continues to pursue business expansion opportunities in PNG, actively engaging with potential customers for its services in PNG and the wider region while also taking actions to protect its capability to realize the future potential of the business.

NON-IFRS MEASURES

This press release contains references to certain financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to the same or similar measures used by other companies. High Arctic Overseas uses these financial measures to assess performance and believes these measures provide useful supplemental information to shareholders and investors. These financial measures are computed on a consistent basis for each reporting period and include Oilfield services operating margin, EBITDA (Earnings before interest, tax, depreciation and amortization), Adjusted EBITDA, Operating loss, Funds flow from operating activities, Working capital and Net cash. These do not have standardized meanings.

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These financial measures should not be considered as an alternative to, or more meaningful than, net income (loss), cash from operating activities, current assets or current liabilities, cash and/or other measures of financial performance as determined in accordance with IFRS.

For additional information regarding non-IFRS measures, including their use to management and investors and reconciliations to measures recognized by IFRS, please refer to the Corporation’s Q3 2024 MD&A, which is available online at www.sedarplus.ca.

About High Arctic ‎Overseas Holdings Corp.

High Arctic Overseas is a market leader in Papua New Guinea providing drilling ‎and specialized well completion services, manpower solutions and supplies rental equipment including rig matting, camps, material ‎handling and drilling support equipment.

For further information, please contact:

Mike Maguire
Chief Executive Officer
1.587.320.1301

High Arctic Overseas Holdings Corp.
Suite 2350, 330–5th Avenue SW
Calgary, Alberta, Canada T2P 0L4
www.higharctic.com
Email: info@higharctic.com

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Forward-Looking Statements
This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Many factors could cause the Corporation’s actual results, performance, or achievements to vary from those described in this Press Release.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this Press Release include, among others, statements pertaining to the following: general economic and business conditions which will include, among other things: the role of the energy services industry in future phases of the energy industry; the outlook for energy services; the timing and impact on the Corporation’s business related to potential new large-scale natural resources projects and increased drilling activity in PNG; market fluctuations in commodity prices, and foreign currency exchange rates; expectations regarding the Corporation’s ability to manage its liquidity risk; raise capital and manage its debt finance agreements; factors upon which the Corporation will decide whether or not to undertake a specific course of operational action or expansion; the Corporation’s ongoing relationship with its major customers; customers’ drilling intentions; the Corporation’s ability to position itself to be a significant supplier of services, equipment and manpower for other projects in PNG; the expectation that the equipment rental and manpower services portion of the Corporation’s business will be the primary revenue generating activity for the remainder of 2024 and for fiscal 2025; the ability of the Corporation to expand its geographic customer base outside of PNG, and the deploying idle heli-portable drilling rigs 115 and 116 and securing future work with other exploration companies in PNG.

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With respect to forward-looking statements contained in this Press Release, the Corporation has made assumptions regarding, among other things, its ability to: maintain its ongoing relationship with major customers; successfully market its services to current and new customers; devise methods for, and achieve its primary objectives; source and obtain equipment from suppliers; successfully manage, operate, and thrive in an environment which is facing much uncertainty; remain competitive in all its operations; attract and retain skilled employees; and obtain equity and debt financing on satisfactory terms.

The Corporation’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth in this Press Release and in the Corporation’s Listing Application dated August 12, 2024, which is available on SEDAR+.

The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

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 release.

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VANCOUVER, BC / ACCESSWIRE / November 29, 2024 / Ostrom Climate Solutions Inc. (“Ostrom” or the “Company”) (TSX-V:COO)(Frankfurt:9EAA), a leading provider of carbon project development and climate solutions, has announced its financial results for the third quarter ended September 30, 2024. The results reflect ongoing strategic investments in project development and operational scalability amid challenging market conditions.

Third Quarter Financial Highlights

• Revenue for Q3 2024 was $389,788, compared to $1,314,302 in Q3 2023, reflecting a 67% decrease primarily due to timing of Verified Emission Reduction (VER) unit retirements and consulting project milestones.

• Net loss for Q3 2024 was $1,268,728, compared to net income of $57,053 in Q3 2023. The loss increase reflects research and development expenses tied to the Company’s flagship Smart-Rice Project, reduced revenue recognition and increased consulting fees.

• Year-to-date revenue reached $1,894,630, compared to $2,041,643 for the same period in 2023, reflecting a modest decrease amidst the transition to long-term recurring revenue models.

Operational and Strategic Developments

During Q3 2024, Ostrom Climate continued advancing its Climate-Smart Agriculture initiatives, specifically the Upper Pampanga River Climate-Smart Agriculture Project (UPRIIS). These projects leverage innovative technologies and Nature-Based Solutions (NBS) to reduce methane emissions, improve water management, and enhance food security in rice farming. Additionally, the Company’s Net Zero Solutions and Carbon Intelligence Services business lines drove progress by providing actionable carbon reduction strategies to clients. The Company also appointed Tejinder Virk as Chief Executive Officer on September 12, 2024, marking a key leadership transition to accelerate Ostrom’s strategic shift toward high-quality carbon project development.

Liquidity and Outlook

The Company ended Q3 2024 with $516,613 in cash, compared to $1,347,522 at year-end 2023. Ostrom Climate remains focused on addressing liquidity challenges through strategic financing efforts and diversifying revenue streams. A key priority remains securing long-term revenue from high-quality VER projects while rationalizing operational expenditures to optimize cash flow.

Management Commentary

“Our Q3 results highlight the transitional phase Ostrom Climate is navigating as we shift to a more sustainable, recurring revenue model,” said Tejinder Virk, CEO of Ostrom Climate Solutions Inc. “While near-term financial challenges reflect reduced revenue recognition and increased investment in strategic initiatives, these efforts are essential for positioning the Company as a leader in high-quality carbon projects and climate solutions. As we look ahead, we are refining our operations to better align with market opportunities and achieve long-term growth.”

About Ostrom Climate Solutions Inc.Ostrom is one of North America’s leading providers of carbon project development and management services, climate solutions, and carbon credit marketing. Over the past 12 years, Ostrom has validated and verified forest carbon projects globally for voluntary and regulated markets, having developed 16 million acres of forest land for conservation and monetized over 10 million carbon credits. Based out of Vancouver, B.C., Canada, the Ostrom team has a global reach, has worked with over 200 organizations globally, including Fortune 500 companies, managed projects in partnership with indigenous stakeholders and has extensive on-ground experience in emerging markets.

Ostrom is focused on developing high-quality carbon projects that have a positive impact on the environment, local communities and biodiversity. Ostrom is publicly listed on the TSX Venture Exchange (COO) and the Frankfurt Stock Exchange (9EAA).

Please visit us at www.ostromclimate.com.

To receive corporate updates via e-mail, please subscribe here.

For more information regarding the Company, please contact:

Tejinder Virk

Chief Executive Officer

Ostrom Climate Solutions Inc.

322 Water St #400, Vancouver, BC V6B 1B6, Canada

Email: tej.virk@ostromclimate.com

Neither 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 Release.

Cautionary Statement Regarding Forward Looking Statements

This news release contains certain statements that may be deemed “forward-looking statements. 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”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

SOURCE: Ostrom Climate Solutions Inc.

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VANCOUVER, BC / ACCESSWIRE / November 29, 2024 / GLG Life Tech Corporation (TSX:GLG) (“GLG” or the “Company”), a global leader in the agricultural and commercial development of high-quality zero-calorie natural sweeteners, announces financial results for the three and nine months ended September 30, 2024. The complete set of financial statements and management discussion and analysis are available on SEDAR and on the Company’s website at www.glglifetech.com.

FINANCIAL SUMMARY

The Company reported revenues of $3.4 million in the third quarter of 2024, compared to $2.4 million in revenue for the third quarter of 2023, an increase of 42%. The Company reported revenues of $10.5 million in the first nine months of 2024, compared to $5.9 million in revenue for the first nine months of 2023, an increase of 78%. The revenue increases in both the three- and nine-month periods was attributable to an increase in international stevia volumes.

The Company continues its efforts to closely manage its SG&A expenses, reducing SG&A by $0.2 million in the third quarter of 2024 and by $0.5 million in the first nine months of 2024, relative to the 2023 comparative periods.

The Company recorded in the third quarter of 2024 the transfer of its “Runde” subsidiary (previously announced as approved by shareholders and to be recorded in the third quarter of 2024 after regulatory reviews were completed), resulting in a significant one-time gain driven by the debt elimination associated with that asset transfer. On a consolidated continuing and discontinued operations basis, the Company recorded total comprehensive gain of $84.8 million for the three months ended September 30, 2024, (versus total comprehensive loss of $7.6 million in the third quarter of 2023), and for the nine months ended September 30, 2024, on this basis, the Company recorded total comprehensive gain of $71.0 million (versus total comprehensive loss of $16.3 million in the first nine months of 2023).

On a consolidated (continuing and discontinued operations) per share basis, the Company reported consolidated gain per share of $2.24 attributable to the Company for the three months ended September 30, 2024, (versus consolidated loss per share of $0.17 in the third quarter of 2023) and $1.90 for the nine months ended September 30, 2024 (versus consolidated loss per share of $0.59 for the first nine months of 2023).

For continuing operations, for the three months ended September 30, 2024, the Company had net loss attributable to the Company from continuing operations of $3.5 million, a decrease of $0.7 million over the comparable period in 2023 ($4.2 million net income). For the nine months ended September 30, 2024, the Company had a net loss attributable to the Company from continuing operations of $11.5 million, an increase in net loss of $4.3 million over the comparable period in 2023 (net loss of $7.2 million).

The Company reported a net loss per share from continuing operations of $0.09 for the third quarter of 2024, compared to net income per share of $0.11 for the third quarter of 2023. For the first nine months of 2024, the Company reported a net loss per share from continuing operations of $0.30, compared to a net loss per share of $0.19 for the first nine months of 2023.

CORPORATE AND SALES DEVELOPMENTS

Subsidiary Transfer Agreement and Special Shareholder Meeting

On February 20, 2024, the Company announced that it had signed an agreement, which, once fully approved, would result in the transfer of its Qingdao Runde Biotechnology Company, Ltd. (“Runde”) production facility to Fengyang Xiaogang Hongzhang Health Industrial Park Co. Ltd (“Xiaogang”). This transfer, at the time contingent on necessary shareholder approval, and still contingent on regulatory approval, would eliminate significant bank debt from GLG’s balance sheet.

Under the terms of the agreement, for the sale price of one Chinese RMB, one hundred percent of the equity in Runde, currently held by the Company’s Anhui Runhai Biotechnology Joint Stock Company, Ltd. (“Runhai”) subsidiary, will be transferred to Xiaogang. Xiaogang will thereafter own Runde’s tangible assets and will have sole liability for Runde’s debts including bank debt. The Company will retain its intellectual property rights, including its proprietary technology and know-how in agriculture and natural sweetener production.

Under supplemental agreements then expected to be signed by Runhai and Xiaogang in the coming weeks (and subsequently signed), Xiaogang will utilize Runde for the benefit of GLG and GLG’s customers. Xiaogang will partner with Qingdao Honghongyuan Health Industry Technology Co., Ltd. (“HHY”) – the operating entity previously formed to manage Runde’s production operations – such that Runde’s production continues unchanged under HHY’s processes and management. Xiaogang, via HHY, will produce goods at Runde exclusively for GLG, except for domestic China sales. In this manner, GLG’s customers will be able to rely on the same production expertise, processes, and highest quality standards remaining in place after this asset transfer becomes fully effective.

The agreement concerning Runde provides that the equity transfer will only become effective upon completion of any regulatory obligations, including putting the agreement forth to the Company’s shareholders for a shareholder vote and additional securities-/exchange-related obligations. This agreement was put to shareholder vote at a special shareholder meeting and approved by the shareholders with over 99% of votes cast in favor of the transaction on May 16, 2024.

On August 13, 2024, Management completed its regulatory review regarding the transfer agreement. Management has determined that no further regulatory review or approvals were required to consummate the transfer, having already obtained the approval of over 99% of the shareholders casting votes at the Company’s Special Shareholder Meeting held on May 16, 2024. Management has reflected the transfer of Runde, including Runde’s assets and debts, in its third quarter interim financial filings.

The Company still owns its Runhai stevia and monk fruit manufacturing facility, located in Anhui province. The Company currently centers its stevia and monk fruit production operations at the Runde facility and plans to continue doing so, via Xiaogang and HHY, with the option to later augment Runde’s operations with production operations at Runhai.

Delisting Review / Delisting from the TSX

On April 3, 2024, the Company announced that the Toronto Stock Exchange (“TSX”) had commenced a delisting review, effective April 2, 2024. The TSX provided the Company a 120-day window in which to remedy several long-standing deficiencies, including the Company’s financial condition and/or operating results and the Company’s share price and market capitalization.

At the time of the announcement, the Company stated that it could not provide any assurance that it would be able to remedy the deficiencies identified by the TSX within the 120-day window or thereafter, particularly as there was no guarantee that the Company’s share price, trading activity, or market capitalization would improve sufficiently to avoid continued TSX concern in those areas. The Company also confirmed that it had been in contact with the TSX Venture Exchange (“TSX-V”) regarding an application for a listing on the TSX-V to maintain trading continuity in the event that the Company is delisted from the TSX.

Since that announcement, the Company was notified by the TSX that it would be delisted effective close of business on September 3, 2024. While the Company was not able to list on the TSX-V due to a Cease Trade Order in effect, the Company has been able to list on the NEX exchange, and the Company’s NEX listing became effective on September 4, 2004.

Delay in Filing Financials and Cease Trade Order

As a result of the Company’s failure to file its 2023 financials (consisting of annual financial statements, its management discussion and analysis relating to its annual financial statements, and its Annual Information Form and CEO and CFO certifications, all in respect of its year ended December 31, 2023) by March 31, 2024, the British Columbia Securities Commission (“BCSC”) issued a failure-to-file cease trade order (“FFCTO”). The failure to file timely resulted from the late-coming court orders regarding Runyang’s bankruptcy proceedings and the additional financial and audit work necessitated by those orders.

The delayed 2023 financial filings, which have since been filed on June 27, 2024, also led to a delay in the filing of the Company’s first quarter 2024 interim financials, which have since been filed on July 23, 2024. With the Company now current in its filings, Management is pursuing a revocation of the FFCTO. Management cannot at this time provide an expected date for a revocation of the FFCTO nor any assurance that the revocation will be granted.

Final Disposition of Runyang Operations

In the course of the bankruptcy proceedings concerning Runyang, the Chinese court ultimately declared Runyang bankrupt, having liquidated all of its assets. In the fourth quarter of 2023, with Runyang’s obligations thereby terminated, the Company realized a significant reduction in its liabilities, substantially outweighing the book value of the liquidated assets.

2024 AGM Voting Results

The Company held its Annual General Meeting on June 28, 2024. The shareholders voted in all four nominated directors, with favorable votes for each exceeding 99%. Dr. Luke Zhang continues as Chairman of the Board and Chief Executive Officer and Mr. Brian Palmieri continues as Vice Chairman of the Board. Madame Liu Yingchun and Mr. Simon Springett continue as directors of the Company.

Company Outlook

In recent quarters, management has placed, and continues to place, particular focus on mitigating the losses that the Company has suffered over the last several years and to ameliorate the Company’s financial position. As a result of those sustained losses, the Company lacks the cash necessary to fully fund the business operations and its strategic product initiatives. The Company continues to manage its cash flows carefully to mitigate risk of insolvency. As a result of these efforts, management has been successful in improving the Company’s cash flows. Nevertheless, without an infusion of cash in the months ahead, the Company may not be able to realize its strategic plans and could eventually cease to be a going concern.

To address that cash need, management previously negotiated revolving loan facilities with a third party for working capital purposes. In 2020, management also realized the sale of one of its two idle assets; the sale of the “Runhao” facility resulted in significant debt reduction. In 2023, the Company also realized significant debt reduction through the bankruptcy liquidation of its other long-idled asset, “Runyang”. In 2024, as of August 13, the Company has finalized the transfer of its “Runde” facility, including Runde’s debts and assets (to be reflected in the Company’s third quarter interim financial filings), which will bring substantial improvements to its balance sheet, while indirectly maintaining production operations (not under the Company’s own name but via HHY) at Runde. Collectively, these efforts to overhaul the Company’s balance sheet better position the Company to avail itself of capital resources to support future growth.

The Company’s focus on maintaining positive cash flow led the Company to take decisive steps in 2021, 2022 and 2023 to reduce its SG&A costs as well as its production costs. Both its North American operations and Chinese operations significantly reduced SG&A costs. For many years, the Company’s production capacity had been far greater than its projected order levels, as it had then sought rapid increases in orders, particularly for Reb A products. The Company’s aim transitioned to “right-sizing” its Chinese operations – i.e., to optimize its staffing and production planning to meet the Company’s projected production requirements while retaining the ability to accommodate growth in future order volumes – and management made significant progress in this area.

A factor that continues to contribute to the Company’s financial situation is the competitive price pressure in the stevia market over the last few years that has reduced mainstream “Reb A” products (such as Reb A 80 and Reb A 97) to the lowest price levels in years. Monk fruit prices have also become highly competitive in the marketplace. To maintain margins at sustainable levels, the Company previously focused on improving production efficiencies, and having made significant progress in that area (prior to transferring Runde’s operations to HHY), the Company continues to strive for a mix of products that is weighted more heavily on higher margin, specialty products, and has focused more on higher margin direct sales. These right-sizing and efficiency efforts have enabled the Company to sell its goods at more competitive and/or more profitable prices, although the competitive price pressures remain strong and the most recent stevia leaf harvest has brought increased raw materials costs in tension with the Company’s focus on product margins.

Revenue trends have been and remain encouraging, as Management’s efforts to increase sales have brought increased revenues in the last three quarters (Q2 and Q1 2024 and Q4 2023) relative to the several prior quarters. Management currently foresees 2024 full-year revenues as meaningfully exceeding full-year 2023 revenues. This revenue growth is important to the Company’s goals of maintaining positive cash flow and positive EBITDA.

Against this backdrop of sales growth, the Company faces significant regulatory hurdles. It is currently cease-traded, as a result of its delay in filing its 2023 full-year financials (since filed, on June 28, 2024), pursuant to a British Columbia Securities Commission order (the failure-to-file cease trade order or “FFCTO”). As a result of that filing delay, the Company was also delayed in filing its interim first quarter financials for 2024 (filed on July 23, 2024). Further, the Company was under a delisting review initiated by the TSX, on the basis of the Company’s share price and market capitalization remaining lower than the TSX’s requirements, as well as the Company’s sustained losses over the years and negative working capital situation, that as noted above, culminated in a decision by the TSX to delist the Company’s shares effective close of business September 3, 2024. The Company has since transferred its listing to the NEX exchange, where it is currently listed (as of September 4, 2024), but the FFCTO remains in effect.

As has been previously announced by the Company, the financial filing delays resulted from late-coming court orders in China related to proceedings concerning the Runyang; the court proceedings resulted in the disposal of the Runyang business, including elimination of significant debts previously carried by the Company, such debt elimination far greater than the carried value of the disposed assets. Management has since brought the Company current in its financial reporting requirements. Accordingly, Management is presently working to have the FFCTO rescinded, but cannot at present provide a timeline or any measure of certainty in having the FFCTO rescinded in the near future.

Although the regulatory hurdles are substantial, Management continues to have a positive outlook, at least in the near term, on the Company’s revenues, particularly compared to 2023, as sales volumes remain elevated approaching the end of 2024 and entering 2025. As Management seeks to have the Company’s stock trading again, Management continues to focus on maintaining and increasing revenues, notwithstanding pricing pressures, as well as on maintaining and improving margins and increase cash flows. Management also continues to work on improving the Company’s negative working capital situation, and in particular, on options to restructure or otherwise resolve some or all of the remainder of the Company’s long-standing bank debt.

SELECTED FINANCIALS

As noted above, the complete set of financial statements and management discussion and analysis for the three and nine months ended September 30, 2024, are available on SEDAR and on the Company’s website at www.glglifetech.com.

Results from Operations

The following results from operations have been derived from and should be read in conjunction with the Company’s annual consolidated financial statements for 2023 and the condensed interim consolidated financial statements for the nine-month period ended September 30, 2024.

In thousands Canadian $, except per share amounts		3 Months Ended September 30			% Change			9 Months Ended September 30			% Change
		2024			2023-Restated						2024			2023-Restated
Results from Continuing Operations
Revenue		$	3,373			$	2,370				42	%		$	10,514			$	5,922				78	%
Cost of Sales		$	(2,762	)		$	(1,993	)			(39	%)		$	(8,584	)		$	(4,716	)			(82	%)
% of Revenue			(82	%)			(84	%)			2	%			(82	%)			(80	%)			(2	%)
Gross Profit		$	612			$	376				63	%		$	1,931			$	1,205				60	%
% of Revenue			18	%			16	%			2	%			18	%			20	%			(2	%)
Expenses		$	(388	)		$	(658	)			(41	%)		$	(1,387	)		$	(2,152	)			(36	%)
% of Revenue			(12	%)			(28	%)			16	%			(13	%)			(36	%)			23	%
Income/(Loss) from Operations		$	224			$	(282	)			179	%		$	544			$	(947	)			157	%
% of Revenue			7	%			(12	%)			19	%			5	%			(16	%)			21	%
Other Income/(Expenses)		$	(3,745	)		$	(3,894	)			4	%		$	(12,064	)		$	(6,314	)			(91	%)
% of Revenue			(111	%)			(164	%)			53	%			(115	%)			(107	%)			(8	%)
Net Income/(Loss)		$	(3,521	)		$	(4,176	)			16	%		$	(11,520	)		$	(7,261	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(110	%)			(123	%)			13	%
Net Income/(Loss) Attributable to GLG		$	(3,515	)		$	(4,167	)			16	%		$	(11,499	)		$	(7,243	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(109	%)			(122	%)			13	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.09	)		$	(0.11	)			16	%		$	(0.30	)		$	(0.19	)			(59	%)
Consolidated Results (Consolidating Continued and Discontinued Operations)
Net Income/(Loss) – Continuing Operations		$	(3,521	)		$	(4,176	)			16	%		$	(11,520	)		$	(7,261	)			(59	%)
Net Income/(Loss) – Discontinued Operations		$	90,640			$	(2,394	)			3886	%		$	85,432			$	(15,458	)			653	%
Net Income/(Loss)		$	87,119			$	(6,570	)			1426	%		$	73,912			$	(22,719	)			425	%
Net Income/(Loss) Attributable to GLG		$	86,083			$	(6,533	)			1418	%		$	72,951			$	(22,524	)			424	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	2.24			$	(0.17	)			1418	%		$	1.90			$	(0.59	)			424	%
Other Comprehensive Income/(Loss)		$	(1,258	)		$	(1,079	)			(17	%)		$	(1,974	)		$	6,286				(131	%)
Comprehensive Net Income/(Loss)		$	85,859			$	(7,649	)			1222	%		$	71,938			$	(16,433	)			538	%
Comprehensive Net Income/(Loss) Attributable to GLG		$	84,826			$	(7,594	)			1217	%		$	70,993			$	(16,303	)			535	%

Revenue

Revenue for the three months ended September 30, 2024, was $3.4 million compared to $2.4 million in revenue for the same period last year. Sales increased by 42% or $1.0 million for the three-month period ending September 30, 2024, compared to the prior period. The $1.0 million increase in sales is primarily attributable to an increase in stevia sales, with an increase in sales volumes more than offsetting the effect of lower unit sales prices driven by competitive price pressure in the stevia marketplace. The Company’s third quarter 2024 and 2023 revenues consisted solely of international sales (i.e., ex-China).

Revenue for the nine months ended September 30, 2024, was $10.5 million compared to $5.9 million in revenue for the same period last year. Sales increased by 78% or $4.6 million for the nine months ending September 30, 2024, compared to the prior period. The sales increase of $4.6 million was driven by an increase in stevia sales, with monk fruit sales decreasing slightly in absolute terms. The increase in stevia sales was driven in part by the base effect of a 2023 first quarter planned delay in orders placed from one of the Company’s largest customers and in part by the Company’s successful efforts to increase sales volumes. The Company’s 2024 and 2023 nine-month revenues consisted solely of international sales.

Cost of Sales

For the three months ended September 30, 2024, the cost of sales increased to $2.8 million, compared to a cost of sales of $2.0 million for the same period last year (an increase in cost of sales of 39%). Cost of sales as a percentage of revenues was 82% for the third quarter, a two-percentage point decrease compared to the third quarter of 2023 (84%). This two-percentage point decrease in cost of sales as a percentage of revenues is attributable, at root, to higher market-wide pricing for certain stevia leaf and base stevia extracts in 2024, relative to 2023, which effectively drove up, and/or impeded the Company’s ability to negotiate, the cost of goods produced for and/or sourced by the Company in the third quarter of 2024 relative to the third quarter of 2023, with pricing to end customers often constrained either contractually or by competitive marketplace conditions.

For the nine months ended September 30, 2024, the cost of sales increased to $8.6 million, compared to a cost of sales of $4.7 million for the same period last year (an increase in cost of sales of 82%). Cost of sales as a percentage of revenues was 82% for the first nine months of 2024, a two-percentage point increase compared to the first nine months of 2023 (80%).

For both the three- and nine-month periods, cost of sales as a percentage of revenues increased given higher market-wide pricing for certain stevia leaf and base stevia extracts in 2024, relative to 2023, but such increases were wholly (three-month) or partly (nine-month) offset by the elimination of idle capacity charges to cost of sales in 2024, whereas idle capacity charges contributed to cost of sales in 2023.

Gross Profit

Gross profit for the three months ended September 30, 2024, increased by $0.2 million to $0.6 million, a 63% increase compared to $0.4 million in gross profit for the same period last year. This 63% increase in gross profit was driven by the increase in sales volumes for the third quarter of 2024 compared to the third quarter of 2023. The gross profit margin was 18% for the third quarter of 2024, compared to 16% in the third quarter of 2023. The gross profit margin increased in the third quarter of 2024 due to the elimination of idle capacity charges, as the idle capacity charges in the third quarter of 2023 effectively reduced the Company’s gross profit margins in that period.

Gross profit for the nine months ended September 30, 2024, increased by $0.7 million to $1.9 million, a 60% increase compared to a gross profit of $1.2 million for the comparable period in 2023. This 60% increase in gross profit was driven by the increase in sales volumes for the first nine months of 2024 compared to the first nine months of 2023. The gross profit margin was 18% in the first nine months of 2024 compared to 20% for the same period in 2023. The gross profit margin declined due to higher market-wide pricing for certain stevia leaf and base stevia extracts in 2024, relative to 2023; the elimination of idle capacity charges in 2024 partly offset the effect of the higher market prices for these stevia raw materials.

Selling, General and Administration Expenses

Selling, General and Administration (“SG&A”) expenses include sales, marketing, general and administration costs (“G&A”), stock-based compensation, and depreciation and amortization expenses on G&A fixed assets. A breakdown of SG&A expenses into these components is presented below:

In thousands Canadian $		3 Months Ended September 30			% Change			9 Months Ended September 30			% Change
		2024			2023-Restated						2024			2023-Restated
Results from Continuing Operations
G&A Expenses		$	375			$	553				(32	%)		$	1,349			$	1,824				(26	%)
Depreciation Expenses		$	13			$	105				(88	%)		$	38			$	328				(88	%)
Total		$	388			$	658				(41	%)		$	1,387			$	2,152				(36	%)

G&A expenses for the three months ended September 30, 2024, were $0.4 million, a $0.2 million decrease compared to the same period in 2023 ($0.6 million). The $0.2 million decrease in G&A expenses for the third quarter of 2024 was driven largely by reductions in salaries and wages and consulting fees. G&A-related depreciation and amortization expenses for the three months ended September 30, 2024, were $nil million compared with $0.1 million for the third quarter of 2023.

G&A expenses for the nine months ended September 30, 2024, were $1.3 million, a $0.5 million decrease compared to the same period in 2023 ($1.8 million). The $0.5 million decrease in G&A expenses for the first nine months of 2024 was driven largely by reductions in salaries and wages and consulting fees. G&A-related depreciation and amortization expenses for the nine months ended September 30, 2024, were $nil million compared with $0.3 million for the first nine months of 2023.

Net Income (Loss) Attributable to the Company (Continuing Operations)

In thousands Canadian $		3 Months Ended September 30			% Change			9 Months Ended September 30			% Change
		2024			2023-Restated						2024			2023-Restated
Net Income/(Loss) – Continuing Operations
Net Income/(Loss)		$	(3,521	)		$	(4,176	)			16	%		$	(11,520	)		$	(7,261	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(110	%)			(123	%)			13	%
Net Income/(Loss) Attributable to NCI		$	(7	)		$	(9	)			22	%		$	(21	)		$	(18	)			(17	%)
Net Income/(Loss) Attributable to GLG		$	(3,515	)		$	(4,167	)			16	%		$	(11,499	)		$	(7,243	)			(59	%)
% of Revenue			(104	%)			(176	%)			72	%			(109	%)			(122	%)			13	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.09	)		$	(0.11	)			16	%		$	(0.30	)		$	(0.19	)			(59	%)

For the three months ended September 30, 2024, the Company had net loss attributable to the Company from continuing operations of $3.5 million, a decrease of $0.7 million over the comparable period in 2023 ($4.2 million net income). This $0.7 million decrease in net loss is attributable to (1) a decrease in SG&A expenses ($0.3 million), (2) an increase in gross profit ($0.2 million), and (3) a decrease in other expenses ($0.2 million).

For the nine months ended September 30, 2024, the Company had a net loss attributable to the Company of $11.5 million, an increase in net loss of $4.3 million over the comparable period in 2023 (net loss of $7.2 million). The $4.3 million increase in net loss attributable to the Company was driven by (1) an increase in other expenses ($5.7 million), which was offset by (2) a decrease in SG&A expenses ($0.8 million) and (3) an increase in gross profit ($0.7 million).

Comprehensive Income (Loss) (Consolidated Continuing and Discontinued Operations

In thousands Canadian $		3 Months Ended September 30			% Change			9 Months Ended September 30			% Change
		2024			2023-Restated						2024			2023-Restated
Comprehensive Income/(Loss) – Consolidated (Continuing and Discontinued Operations)
Net Income/(Loss)		$	87,119			$	(6,570	)			1426	%		$	73,912			$	(22,719	)			425	%
Net Income/(Loss) Attributable to NCI		$	1,035			$	(37	)			2897	%		$	962			$	(196	)			591	%
Net Income/(Loss) Attributable to GLG		$	86,083			$	(6,533	)			1418	%		$	72,951			$	(22,524	)			424	%
Other Comprehensive Income/(Loss)		$	(1,258	)		$	(1,079	)			(17	%)		$	(1,974	)		$	6,286				(131	%)
% of Revenue			(37	%)			(46	%)			8	%			(19	%)			106	%			(125	%)
Other Comprehensive Income/(Loss) Attributable to NCI		$	(2	)		$	(18	)			89	%		$	(16	)		$	65				(125	%)
Other Comprehensive Income/(Loss) Attributable to GLG		$	(1,256	)		$	(1,061	)			(18	%)		$	(1,958	)		$	6,221				(131	%)
% of Revenue			(37	%)			(45	%)			8	%			(19	%)			105	%			(124	%)
Comprehensive Income/(Loss)		$	85,859			$	(7,649	)			1222	%		$	71,938			$	(16,433	)			538	%
% of Revenue			2545	%			(323	%)			2868	%			684	%			(277	%)			962	%
Comprehensive Income/Loss Attributable to NCI		$	85,859			$	(7,649	)			1222	%		$	71,938			$	(16,433	)			538	%
Comprehensive Income/Loss Attributable to GLG		$	84,826			$	(7,594	)			1217	%		$	70,993			$	(16,303	)			535	%
% of Revenue			2515	%			(320	%)			2835	%			675	%			(275	%)			951	%

The Company, on a consolidated continuing and discontinued operations basis, recorded total comprehensive income of $84.8 million for the three months ended September 30, 2024, comprising, as attributable to the Company, $86.1 million of net income and $1.3 million of other comprehensive loss. On the same basis, the Company recorded total comprehensive loss of $7.6 million for the three months ended September 30, 2023, comprising, as attributable to the Company, $6.5 million of net loss and $1.1 million of other comprehensive loss. The $86.1 million of net income in the third quarter of 2024 is primarily attributable to gain recorded from the sale of the Company’s Runde facility.

The Company, on a consolidated continuing and discontinued operations basis, recorded total comprehensive gain of $71.0 million for the nine months ended September 30, 2024, comprising, as attributable to the Company, $73.0 million of net income and $2.0 million of other comprehensive loss. On the same basis, the Company recorded total comprehensive loss of $16.3 million for the nine months ended September 30, 2023, comprising, as attributable to the Company, $22.5 million of net loss, offset by $6.2 million of other comprehensive income.

Quarterly Basic and Diluted Loss per Share

The basic and diluted loss per share from continuing operations was $0.09 for the three months ended September 30, 2024, compared with a basic and diluted net loss per share from continuing operations of $0.11 for the comparative period in 2023. The basic and diluted gain per share from consolidated continuing and discontinued operations was $2.24 for the three months ended September 30, 2024, compared with a basic and diluted net loss per share from consolidated operations of $0.17 for the comparative period in 2023.

The basic and diluted loss per share from continuing operations was $0.30 for the nine months ended September 30, 2024, compared with a basic and diluted net loss per share from continuing operations of $0.19 for the comparative period in 2023. The basic and diluted gain per share from consolidated continuing and discontinued operations was $1.90 for the nine months ended September 30, 2024, compared with a basic and diluted net loss per share from consolidated operations of $0.59 for the comparative period in 2023.

Additional Information

Additional information relating to the Company, including our Annual Information Form, is available on SEDAR ( www.sedar.com ). Additional information relating to the Company is also available on our website ( www.glglifetech.com ).

For further information, please contact:

Simon Springett, Investor Relations

Phone: +1 (604) 669-2602 ext. 101

Fax: +1 (604) 662-8858

Email: ir@glglifetech.com

About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in the supply of high-purity zero calorie natural sweeteners including stevia and monk fruit extracts used in food and beverages. GLG’s vertically integrated operations, which incorporate our Fairness to Farmers program and emphasize sustainability throughout, cover each step in the stevia and monk fruit supply chains including non-GMO seed and seedling breeding, natural propagation, growth and harvest, proprietary extraction and refining, marketing and distribution of the finished products. Additionally, to further meet the varied needs of the food and beverage industry, GLG, through its Naturals+ product line, supplies a host of complementary ingredients reliably sourced through its supplier network in China. For further information, please visit www.glglifetech.com.

Forward-looking statements: This press release may contain certain information that may constitute “forward-looking statements” and “forward looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements. Specific reference is made to the risks set forth under the heading “Risk Factors” in the Company’s Annual Information Form for the financial year ended December 31, 2023. In light of these factors, the forward-looking events discussed in this press release might not occur.

Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.

SOURCE: GLG Life Tech Corporation

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At the close in Toronto, the S&P/TSX Composite rose 0.41% to hit a new all time high.

The best performers of the session on the S&P/TSX Composite were Cogeco Communications Inc (TSX:CCA), which rose 4.74% or 3.17 points to trade at 70.00 at the close. Meanwhile, Denison Mines Corp (TSX:DML) added 4.01% or 0.13 points to end at 3.37 and South Bow Corp (TSX:SOBO) was up 3.21% or 1.15 points to 36.96 in late trade.

The worst performers of the session were Brookfield Business Partners LP (TSX:BBU_u), which fell 1.68% or 0.62 points to trade at 36.39 at the close. Maple Leaf Foods Inc . (TSX:MFI) declined 1.64% or 0.38 points to end at 22.75 and Parkland Fuel Corporation (TSX:PKI) was down 1.61% or 0.59 points to 36.15.

Rising stocks outnumbered declining ones on the Toronto Stock Exchange by 642 to 289 and 92 ended unchanged.

Shares in Denison Mines Corp (TSX:DML) rose to 5-year highs; up 4.01% or 0.13 to 3.37.

The S&P/TSX 60 VIX, which measures the implied volatility of S&P/TSX Composite options, was up 4.63% to 11.07.

Gold Futures for February delivery was up 0.34% or 8.99 to $2,673.79 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January fell 0.84% or 0.58 to hit $68.14 a barrel, while the February Brent oil contract fell 0.98% or 0.71 to trade at $72.07 a barrel.

CAD/USD was unchanged 0.11% to 0.71, while CAD/EUR unchanged 0.12% to 0.68.

The US Dollar Index Futures was down 0.24% at 105.79.