Sincerity Applied Materials Holdings Corp. (OTC: SINC), a leading innovator in advanced materials, today provided a comprehensive update on recent developments, addressing shareholder inquiries related to debt conversions, authorized share increases, and future business plans.
Status of Debt Conversions
As disclosed in our latest quarterly filing, SINC has made significant progress in reducing its debt. As of August 29th, 2024, the remaining balances are as follows:
- USD 76,500 from One44 Capital
- USD 2,390.25 from 1800 DIAGONAL LENDING, LLC
- USD 85,107.33 from 1800 DIAGONAL LENDING, LLC
This marks a substantial reduction, with one-third of the original debt already converted.
Increase in Authorized Shares to 2.9 Billion
In response to concerns raised by shareholders, SINC confirms that the authorized shares have been increased to 2.9 billion as of August 21st, 2024. This increase was necessary to fulfill anti-dilutive contractual obligations related to our recent Australian and US acquisitions, ensuring that the original shareholders and management team of Agroshield maintain an aggregate holding of 42.26%.
While the increase in authorized shares might raise concerns about potential dilution, it is essential to note that the company's stock price will ultimately reflect its strong fundamentals. Our focus remains on core business activities, innovation, and transparency with our investors. With a unified management team, we are confident that uplisting to NASDAQ or NYSE is within reach.
Future Financing and Convertible Notes
As SINC moves into 2024, we are proud to report that the company is now cash flow positive. We are raising funds for our new Quantum glass giga factory and expanding our operations in the US without the need for floorless convertible notes. The convertible notes that have contributed to the decline in share price are minimal compared to the intrinsic value of the company. Refinancing these notes with convertible preferred shares would have offered no significant advantage. Instead, we are focused on building a strong fundamental business, which has been evident since Q4 2023.
Enhancing Shareholder Interest/Market Exposure
SINC is legally and ethically committed to the proper promotion of its stock. We cannot and will not engage in artificial measures to boost the stock price. However, we are planning a series of roadshows, led by Agroshield, in the US. These roadshows will present SINC as a compelling investment opportunity to both retail and institutional investors, promoting organic growth in shareholder interest.
Sustaining Growth and Revenue Projections
Our most recent quarterly report showcased significant gains in both revenue and gross margin, driven entirely by organic growth. In preparation for audited financials and future uplisting, we have reorganized our operations, spinning off Sincerity Australia Pty Ltd and consolidating our Adelaide operations. This ensures a cleaner audit process and strengthens our financial transparency.
The high gross margins reported are a result of our innovative product range, and we anticipate maintaining these margins for at least the next five years. In Q3, Agroshield’s financials will be fully consolidated, and we expect their 2024 revenue to be approximately $4 million.
About Sincerity Applied Materials Holdings Corp Sincerity Applied Materials Holdings Corp (OTC: SINC) is incorporated in Nevada, USA, specializing in applied materials and chemicals. With a strong commitment to innovation and quality, SINC aims to deliver superior products and services across various global industry verticals.
About AgroShield LLC AgroShield LLC is a Wyoming-based corporation engaged in the manufacturing and distribution of products and technologies for the agriculture, aquaculture, and waste management industries. AgroShield provides innovative solutions to improve efficiency and sustainability in these critical sectors.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, assumptions, estimates, and projections about Sincerity Applied Materials Holdings Corp and its industry. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those anticipated. The company disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
Contact:
Yiwen Zhang, CEO Sincerity Applied Materials Holdings Corp
+61 4 2100 7277 / ir@sincerityplastics.com
Tiffany Campbell, Public Affairs Manager, Sincerity Applied Materials Holdings Corp
tiffany@agro-shield.com
Note: The information provided in this press release is subject to change, and readers are advised to refer to the latest filings and updates on the SEC's website and OTC Markets for the most current and accurate information.