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August 2018
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Sweet Natural Trading Co. Announces Q2 2018 Financial Results and Additional Financing


Toronto, Ontario–(Newsfile Corp. – August 29, 2018) – Sweet Natural Trading Co. Limited (TSXV: NTRL) (“Sweet Natural Trading”, or the “Company”) announces that is has released its financial and operating results for the three months ended June 30, 2018, and June 30, 2017. Highlights of the results include:

2018 2017
Revenue $ 1,697,585 $ 1,652,101
Gross Profit $ 288,408 $ 341,132
Net Loss $ (818,460) $ (929,269)
EBITDA $ (625,625) $ (671,545)
Adjusted EBITDA* $ (483,212) $ (594,705)
Loss per share $ (0.01) $ (0.03)
* EBITDA adjusted for share-based payments, restructuring and research and development costs.

The supply shortage in the global market for the natural sweetener xylitol continued into the second quarter of the year, however, the Company’s strong ties with its suppliers allowed for some recovery towards the end of the quarter. For years, Sweet Natural Trading has been an industry leader in providing the highest quality xylitol to the North American retail market and aspire to continue to be the industry leader. Sales and margins in Q2 improved over Q1 as we executed a plan to mitigate the situation for the remainder of the year and into 2019.

With the brand transformation and restructuring of the business almost complete, the Company has focused its efforts on meeting with retailers and customers to now focus on sales growth — from adding new accounts, expanding geographic distribution with existing accounts and product extension, to leveraging the retail shelves that we currently penetrate. As press released in April, we were successful in new distribution orders with KeHE, on behalf of Publix, to add the newly branded and packaged Birch Xylitol Sweetener to Publix’s approximate 1,100 stores in the United States. And we continue to use this positive momentum to target sales growth with our newly branded portfolio of natural sweeteners.

The full text of the Company’s interim consolidated financial statements and related management’s discussion and analysis (“MD&A”) can be found at:

Additional Financing

The Company is pleased to announce that the Company intends to complete a non-brokered private placement of a maximum of 10,000,000 common shares of the Company (the “Offered Shares”) at a price of $0.05 per Offered Shares for total gross proceeds of up to $500,000 (the “Offering”).

The funds raised pursuant to the Offering will be used by the Company for general working capital purposes, including purchasing inventory to satisfy new sales accounts and to pursue the Company’s strategic plan.

About Sweet Natural Trading Co. Limited

Sweet Natural Trading Co. Limited is a leading natural sweetener company that promotes healthier eating by selling food products that reduce refined, added sugar consumption. With obesity and diabetes reaching unprecedented levels, the Company is focused on making a positive impact in reducing these lifestyle diseases. Sweet Natural Trading Co. products are sold in over 5,000 stores including major retail customers such as Loblaws, Walmart, Whole Foods, Costco, Publix, Sprouts and distributors including UNFI and KeHE.

For more information about Sweet Natural Trading Co. Limited please contact:

Steven Haasz
CEO and a director of Sweet Natural Trading Co. Limited

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Offering and the Company’s strategic growth plan, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are risks detailed from time to time in the filings made by the Company with securities regulators.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.