Welcome!

News Feed Item

Eco-Tek Worldwide CEO Speaks About the Company's Future Plans

TORONTO, ONTARIO -- (Marketwired) -- 04/28/14 -- (OTCQB: ETEK)

I came to join Eco-Tek in June of 2013 and immediately recognized that it was a great little Company with truly fantastic products but, with the passing of its founder more than a year earlier, it had lost its direction. Even best lubricant in the world and the best oil cleaning system won't sell themselves.

Job one was to get more customers. A new team of seasoned professionals joined the Company, most them on performance based renumeration, and they had kicked up our sales. We have been achieving a 50% growth in sales per quarter and we are convinced that we can sustain this kind of growth in revenue for the foreseeable future. Next we had to increase our margins. Working with our suppliers and using smart cost controls we have brought our margins from low 30s to high 40s. Our distribution partners in North America were focused on smaller customers and our international success with larger customers in the mining, construction and transport sectors showed us that we should change up our distribution in North America. In April we started that process with North Dakota and we will add about 10 more distribution partners in North America over the next year. Overall Eco-Tek expects to have revenue of $2.2 million to $2.8 million in 2014.

Before I joined the Company, it became a public Company by way of an RTO. The group that arranged this fairly expensive process funded the Company by Convertible Promissory Notes and Promissory Notes. The Company borrowed about $900,000 over the course of last year to pay for its costs associated with filing, legal, accounting and audit work with regards to being a public Company. This group ceased to provide funds in August of 2013 and Eco-Tek has gone to the financial markets to obtain financing since that time. A large portion of the outstanding debt from the period up to August 2013 could have been converted into huge numbers of shares and the Company has taken steps to minimize the impact of this issue by changing out the notes that could have converted for many hundreds of millions of shares for ones that convert for only millions of shares. These conversions have occurred between December 2013 and March 2014 with little or no impact on our shares. The Company has also made arrangements with other note holders to convert their notes into preferred shares that will not impact the common share dilution. The Company also has about $475,000 in debt to the original founding shareholders and they have also agreed to convert to preferred shares. This action plan will take about three more months to complete and it has has two major benefits. One: it significantly reduces the potential dilution. While the total conversion number would vary with share market price, we believe that the overall impact of our action plan will have reduced dilution by about 1.3 billion shares. Two: it almost eliminates the Company debt, new debt excluded. We expect the fully diluted share number to be between 650 million and 750 million plus new shares attributable to stock options.

I and many of our senior staff are taking the major portion of our pay as stock options. This action has two large benefits for the Company. First it conserves cash, which is always a valuable commodity for a growing Company, and second its aligns the interests of our team with our shareholders. I like to have everybody in the canoe paddling with the Company.

The Company plans two more action items with regards to our share structure. First, in the next short while, we will file for a change in the Authorized Shares from 7 billion to 1 billion, and second, once we have completed the conversions and debt elimination as outlined above, we will commence a buyback program to reduce the total outstanding issued shares by about 250 million. We expect this program to take about a year.

Eco-Tek is a great little Company about to get much bigger. We were six hard working people in June of 2013 and we are now a strong team of twenty-seven that grows every month. We will still have our ups and downs but we are inspired by our recent successes and excited by our prospects. We expect to have bright future, make good money and have some fun. We invite you come along and help us on our journey.

Eco-Tek Group Inc. (OTCQB: ETEK)

About Eco-Tek Group Inc.:

Eco-Tek Group Inc., based in Toronto, Ontario was founded in 2009. Dedicated to the development and marketing innovative and cost effective "green" lubrication products for the transportation, industrial and marine industries and development by their experienced chemists and engineers with extensive knowledge in the science of lubrication and related studies. Eco-Tek Group Inc. is dedicated to formulating cutting edge products that make a significant contribution to the reduction of fossil fuel consumption while enhancing quality and performance.

Eco-Tek Group Inc. has marketed the company's products in Ontario for the past number of years and has established a solid base of highly satisfied customers. Recently Eco-Tek has established distributors in South America, and Europe and is now expanding its operations across North America and around the world.

Submitted on behalf of its board

Safe Harbor:

This press release may contain forward-looking statements with respect to business conducted by Eco-Tek Group Inc. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Such forward-looking statements include those that express plan, anticipation, intent, contingency, goals, targets, or future developments and/or otherwise are not statements of historical fact. The words "potentially", "anticipate", "could", "calls for", and similar expressions also identify forward-looking statements. The Company does not undertake to update any forward-looking statements. Factors that could affect actual results include, without limitation, risks associated with: the Company's ability to successfully obtain patents for its technology and the adequacy of such patents; the introduction of competitive technology; the Company's ability to develop, manufacture, license, or sell its products or product candidates; the Company's ability to enter into and successfully execute any license and collaborative agreements; the adequacy of the Company's capital resources and cash flow projections, the Company's ability to obtain sufficient financing to maintain the Company's planned operations, or the risk of bankruptcy; other risks that may be described under Certain Risks and Uncertainties Related to the Company's Business, as contained in the forthcoming Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.F.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.