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Report No. : |
336814 |
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Report Date : |
27.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ECOSYNTHETIX INC. |
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Registered Office : |
3365 Mainway, |
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Country : |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
1996 |
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Legal Form : |
Public Company |
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Line of Business : |
·
Subject engages in the development and
commercialization of bio-based materials that are used as inputs in
industrial manufacturing in North America, Latin America, Europe, the Middle
East, ·
Subject offers ECOSPHERE BIOLATEX binders for use
in the coated paper and paperboard, and personal care industries. ·
The company also provides DURABIND engineered
biopolymers that enable manufacturers of particle board, medium density
fiberboard, veneers, and laminates to decrease the amount of regulated
chemicals, such as formaldehyde in their formulation; and ECOMER biomonomers
that helps polymer manufacturers to create new waterborne sugar-acrylic
polymers and resins. |
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No. of Employees : |
45 [For the Group] |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Canada |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CANADA - ECONOMIC OVERVIEW
As a high-tech industrial society in the trillion-dollar
class, Canada resembles the US in its market-oriented economic system, pattern of
production, and high living standards. Since World War II, the impressive
growth of the manufacturing, mining, and service sectors has transformed the
nation from a largely rural economy into one primarily industrial and urban.
The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free
Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase
in trade and economic integration with the US, its principal trading partner.
Canada enjoys a substantial trade surplus with the US, which absorbs about
three-fourths of Canadian merchandise exports each year. Canada is the US's
largest foreign supplier of energy, including oil, gas, and electric power, and
a top source of US uranium imports. Given its abundant natural resources,
highly skilled labor force, and modern capital plant, Canada enjoyed solid
economic growth from 1993 through 2007. Buffeted by the global economic crisis,
the economy dropped into a sharp recession in the final months of 2008, and
Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus.
Canada's major banks, however, emerged from the financial crisis of 2008-09
among the strongest in the world, owing to the early intervention by the Bank
of Canada and the financial sector's tradition of conservative lending
practices and strong capitalization. Canada achieved marginal growth in 2010-14
and plans to balance the budget by 2015 despite the recent drop in oil prices.
In addition, the country's petroleum sector is rapidly expanding, because Alberta's
oil sands significantly boosted Canada's proven oil reserves. Canada now ranks
third in the world in proved oil reserves behind Saudi Arabia and Venezuela and
is the world’s fifth-largest oil producer.
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Source
: CIA |
Company name: ECOSYNTHETIX INC.
Address: 3365 Mainway,
Burlington, Ontario L7M 1A6 - Canada
Telephone: +1
289-878-0286
Fax: +1 289-288-5011
Website: www.ecosynthetix.com
Corporate ID#: ON-02285780
State: Ontario
Judicial form: Pubic Company (TSX = ECO)
Date incorporated: 05-20-2011
Date founded: 1996
Stock: 54,282,134
shares issued and outstanding (as of 05-29-2015)
Market value: CAD
67,852,668=
Name of manager: Jeffrey MACDONALD
(Interim Chief Executive Officer)
Business:
EcoSynthetix Inc., a renewable chemicals company, engages in the development
and commercialization of bio-based materials that are used as inputs in
industrial manufacturing in North America, Latin America, Europe, the Middle
East, Africa, and the Asia Pacific.
It offers ECOSPHERE BIOLATEX binders for use in the coated paper and
paperboard, and personal care industries.
The company also provides DURABIND engineered biopolymers that enable
manufacturers of particle board, medium density fiberboard, veneers, and
laminates to decrease the amount of regulated chemicals, such as formaldehyde
in their formulation; and ECOMER biomonomers that helps polymer manufacturers
to create new waterborne sugar-acrylic polymers and resins.
In addition, it offers EcoStix products for use in the development of waterborne
pressure sensitive adhesives.
The company’s products are used in various industries, including paper
and paperboard; building products, such as wood composites and insulation;
personal care products; non-woven wipes; non-woven automotive parts; and
paints, coatings, and adhesives.
EcoSynthetix Inc. was founded in 1996 and is headquartered in
Burlington, Canada.
Foreign suppliers include:
CHEMIGATE OY
SIMPSIONTIE 682 LAPUA 62100 FINLAND
Staff: 45 (for the group)
Operations & branches:
At the headquarters, we
find a laboratory and office, on lease.
Shareholders:
This is a public Company,
listed with the Toronto Stock Exchange under symbol ECO.
Management:
Jeffrey MACDONALD has been Interim Chief Executive Officer at
EcoSynthetix Inc. since February 2015.
He served as the Chief Operating Officer at EcoSynthetix from April 24,
2014 to February 2015 and led its business development, sales, operations and
product development activities. Mr. MacDonald served as Vice-President of
Marketing at Husky Injection Molding Systems Ltd. Mr. MacDonald served as a
Vice President of Marketing and Automotive at Husky Injection Molding Systems
Ltd. Previously, he held leadership roles in sales and operations, and led the
establishment of Husky's Asia-Pacific business.
He holds an MBA in International Business Management from McMaster
University and a BSc. from the University of Western Ontario.
David W. Colcleugh, Ph.D., is the Chairman.
He graduated from the University of Toronto where he obtained a BASc. in
Chemical Engineering in 1959, MASc. in Chemical Engineering in 1960 and a Ph.D
in 1962 in Chemical Engineering and Applied Chemistry. He furthered his
education from 1962 to 1963 at the University of Cambridge doing post-doctorate
research.
Robert Martin HAIRE is the CFO.
As far as we know, they are also involved in other corporations,
including:
ECOSYNTHETIX ADHESIVES INC.
ECOSYNTHETIX CANADA CORPORATION
ECOSYNTHETIX CORPORATION
ECOSYNTHETIX TECHNOLOGIES INC.
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Currency in |
As of: |
Dec 31 |
Dec 31 |
Dec 31 |
Dec 31 |
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Revenues |
20.8 |
19.6 |
22.2 |
18.8 |
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NET INCOME |
-252.7 |
-11.4 |
-14.8 |
-14.5 |
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On May 4, 2015, EcoSynthetix Inc. reported unaudited consolidated
earnings results for the first quarter ended March 31, 2015.
Net sales were $4,169,948 compared to $4,994,064 a year ago.
The decrease in sales was due to lower sales volume of $0.5 million, or
10% of the total change in sales, primarily due to the announced FutureMark
Paper mill closure last year. Continuing unfavourable macro market conditions
resulted in a lower average selling price which negatively impacted sales by
$0.3 million or 7% of the total change in sales. This downward pressure was due
to SB latex prices, which trade in parallel to crude oil prices, continuing to
trade well below its historical average. Loss from operations was $4,204,510
compared to $3,405,355 a year ago. Net loss and comprehensive loss was
$4,124,619 compared to $3,322,254 a year ago. Basic and diluted loss per common
share was $0.07 compared to $0.06 a year ago. Cash used in operating activities
was $1,591,750 compared to $3,179,958 a year ago. Cash used for purchase of
intangible assets and property, plant and equipment was $462,491 compared to
$230,198 a year ago. Adjusted EBITDA loss for the three months ended March 31,
2015 was $3.8 million compared to a loss of $2.8 million in the same period
last year, an increased loss of $1.0 million or 35%. The increase in net loss
was due to an increase in loss from operations. Adjusting for the termination
benefits recognized and unrealized foreign exchange translation losses during
the current quarter, the net loss was $2.4 million or $0.04 per common share
compared to $3.3 million or $0.06 per common share last year, a decrease of
$0.9 million or 29%.
On attachment:
- 10K 2014
- 1st 10Q 2015
Banks: Scotia Bank
…
Legal filings & complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: Several
Trade references:
Date reported: April 2015
High credit: USD 15,000
Now owing: 0
Past due: 0
Last purchase: March 2013
Line of business: Office supply
Paying status: 3+ days beyond terms
Date reported: April 2015
High credit: USD 60,000
Now owing: 0
Past due: 0
Last purchase: March 2013
Line of business: Payroll
Paying status: As agreed
Date reported: April 2015
High credit: USD 420
Now owing: 0
Past due: 0
Last purchase: March 2013
Line of business: Telecommunications
Paying status: 5 days terms
Domestic credit history:
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made with an average of 5 to 10 days beyond terms.
Other comments:
The bank confirmed a low
cash flow.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is medium/high.
Our opinion:
We suggest you to be
careful.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.16 |
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1 |
Rs.103.87 |
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Euro |
1 |
Rs.75.89 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.