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
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Cloud adoption is often driven by a desire to increase efficiency, boost agility and save money. All too often, however, the reality involves unpredictable cost spikes and lack of oversight due to resource limitations. In his session at 20th Cloud Expo, Joe Kinsella, CTO and Founder of CloudHealth Technologies, tackled the question: “How do you build a fully optimized cloud?” He will examine: Why TCO is critical to achieving cloud success – and why attendees should be thinking holistically ab...
As more and more companies are making the shift from on-premises to public cloud, the standard approach to DevOps is evolving. From encryption, compliance and regulations like GDPR, security in the cloud has become a hot topic. Many DevOps-focused companies have hired dedicated staff to fulfill these requirements, often creating further siloes, complexity and cost. This session aims to highlight existing DevOps cultural approaches, tooling and how security can be wrapped in every facet of the bu...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platform...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Launched in 2016, Cloudistics helps anyone bring the power of the cloud to the data center in an easy-to-use, on- premises cloud platform that automatically provides high performance resources for all types of applications: Docke...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International 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 ...