- Sales up 96.9% to $6.7 million compared to Q2 2007
- Operating loss dropped to $146,125 in Q2 2008 from $950,706 in Q2 2007
and $1,027,265 in Q1 2008
- Across-the-board growth for all markets and products
- Completion of a $1.5 million financing with Fondaction CSN subsequent
to the end of the second quarter
MONTREAL, Aug. 29 /CNW Telbec/ - Ranaz Corporation ("Ranaz")
(TSX-V: RNZ), a company specialized in the manufacturing and marketing of
protein and dietary supplements, reported its results today for the second
quarter and six-month period ended June 30, 2008. Full results including the
financial statements and management discussion and analysis are available on
the Ranaz website at www.ranazcorporation.com.
Ranaz's sales jumped 96.9% in the second quarter of 2008 to $6,723,024
from $3,413,792 last year. Sales for the first half of 2008 amounted to
$11,078,440, 76.1% higher than sales of $6,290,715 a year ago. The Company saw
sales growth in all its markets and for all its products, particularly
ProtiLife, Protidiet and private brands (BarTech).
Ranaz was also successful in cutting its operating loss substantially in
the second quarter of 2008, to $146,125 from $950,706 last year and $1,027,265
in the first quarter of 2008. The Company's net loss for the second quarter
was also lower, falling to $408,919 or $0.011 per share from $1,149,919 or
$0.037 per share a year earlier. The net loss for the first half of the year
totalled $1,595,665 or $0.043 per share, compared to $1,977,770 or
$0.071 per share for the same period in 2007.
"These results attest to the solid performance posted by Ranaz in the
second quarter, in terms of both sales and operations," said Jean
Bourassa-Marineau, President and Founder of Ranaz. "In fact, we recorded an
operating profit for the months of May and June, which is in line with our
objective of achieving operating profitability as soon as possible while
pursuing our growth activities."
Financing with a Prime Strategic Partner
The Company closed a financing on August 26, 2008, when it issued a
$1.5 million unsecured convertible debenture to Fondaction CSN. The five-year
debenture bears interest at a rate of 12% per year and is convertible into
common shares of Ranaz at $0.96 per share for the first 24 months. The
conversion price will then increase by 10% per year in subsequent years. The
interest will be capitalized for the first year, and a capital repayment
holiday has been granted for the first two years.
"Ranaz is presently in a phase of strong growth, which we have taken
measures to sustain in the coming quarters. For our ProtiLife and Protidiet
products, we will continue to focus on targeted marketing programs, and will
soon launch new innovative products that complement our current product line
while maintaining an inventory level that allows us to meet the growing demand
for our products," added Mr. Bourassa-Marineau.
"In terms of private brands, the recently-initiated process of acquiring
the building near the BarTech (USA) facilities in Michigan is moving forward.
We are presently at the due diligence and building financing stage, and do not
anticipate any unforeseen delays. As mentioned earlier, we plan to install a
second production line in the fourth quarter of 2008, which will enable us to
triple our production of nutritional bars to 90 million bars as of the first
quarter of 2009. This new line will also enable us to transfer production of
our own bars to the new plant, which will generate substantial economies of
scale for Ranaz. Overall, we expect these measures to have a very positive
effect on Ranaz's performance in the coming quarters," concluded
About Ranaz Corporation
Ranaz is a corporation specializing in the manufacture and marketing of
protein and dietary supplements. Its mission is to design, develop and market
nutritional, protein and dietary supplements under its own corporate brands
and concepts, such as Protidiet and ProtiLife, as well as under private
labels. For more information about the Company, please visit our website at
Certain statements contained in this news release, other than statements
of fact that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current
expectations of management, inherently involve numerous risks and
uncertainties, known and unknown, many of which are beyond Ranaz's control.
Such risks include but are not limited to: the impact of general economic
conditions, changes in the regulatory environment in the jurisdictions in
which Ranaz does business, stock markets volatility, fluctuations in costs,
and changes to the competitive environment due to consolidation, as well as
other risks disclosed in public filings of Ranaz. Consequently, actual future
results may differ materially from the anticipated results expressed in the
forward-looking statements. The reader should not place undue reliance, if
any, on the forward-looking statements included in this news release. These
statements speak only as of the date made and Ranaz is under no obligation and
disavows any intention to update or revise such statements as a result of any
event, circumstances or otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Martin Vidal, Executive Vice President and
Chief Financial Officer, Ranaz Corporation, (450) 491-7106, Ext. 213,
email@example.com; François Kalos, President, SOLAK Communications,
(450) 993-0828, firstname.lastname@example.org