SCHMITT INDUSTRIES INC - SMIT STOCK NEWS

Schmitt Industries, Inc. (NASDAQ: SMIT) appointed Kristi Frank as a new independent director on November 14, 2022, increasing the Board's independent director majority in compliance with Nasdaq requirements. Frank, an entrepreneur and marketing expert, co-founded YogaSix Utah and previously gained fame as a contestant on The Apprentice. Her experience is expected to provide valuable insights as Schmitt continues to expand its ice cream segment, particularly Ample Hills. The company operates in precision measurement solutions and ice cream production, enhancing its diverse business portfolio.

On October 20, 2022, Schmitt Industries (NASDAQ: SMIT) announced updates following its 10-K filing, including a proposed rights offering and receipt of Nasdaq deficiency notices. For fiscal 2022, the company reported a 76.6% revenue increase to $9.89 million, with the Ice Cream Segment revenue rising 105.7%.

Despite a gross margin improvement to 51.2%, operating expenses surged by 25.5% to $15.68 million. The net loss was ($3.28 million), with cash reserves down to $1.05 million. The company aims to regain compliance with Nasdaq listing rules by filing its 10-Q by November.

Schmitt Industries received a notice from Nasdaq on September 14, 2022, for not filing its Annual Report on Form 10-K by the required date. The Company has until November 13, 2022, to submit a compliance plan. Additionally, Schmitt will restate financial statements for the period ended May 31, 2022, due to a $330,203 misstatement from under-recognized expenses. Furthermore, a planned reverse merger with Proton Green has been terminated. Schmitt's stock remains listed on Nasdaq during the grace period while compliance efforts are underway.

On July 25, 2022, Schmitt Industries (NASDAQ: SMIT) announced a planned reverse merger with Proton Green and a spin-off of its Ample Hills business. CEO Michael Zapata expressed optimism, stating this merger could maximize shareholder value. The transaction follows a recent monetization of real estate assets and aims to give shareholders a well-capitalized Ample Hills company while providing ownership in Proton Green. However, the completion of the merger is contingent on various approvals and negotiations, with no guarantee that it will materialize.

Schmitt Industries, Inc. (NASDAQ: SMIT) announced a non-binding term sheet for a reverse merger with Proton Green, LLC, aiming to enhance its foothold in the helium, hydrogen, and carbon sequestration sectors. The deal includes the spin-off of Schmitt's Ample Hills business to current shareholders. Proton Green will become a wholly-owned subsidiary, and Schmitt will be renamed 'Proton Green Corporation.' The merger could result in Proton Green security holders owning about 95% of the combined entity. Completion remains contingent on negotiations and approvals.

On July 18, 2022, Schmitt Industries (NASDAQ: SMIT) announced the successful closure of a Real Estate Purchase and Sale Agreement with Tofte Farms, LLC, acquiring the property at 2765 NW Nicolai Street, Portland, Oregon, for $3,500,000. The net proceeds from this transaction are estimated to be $3,200,000 for the company. Founded in 1987, Schmitt specializes in precision test and measurement products through its Acuity and Xact product lines and operates Ample Hills Creamery.

Schmitt Industries (NASDAQ: SMIT) reports strong growth in Ample Hills ice cream sales, with May same-store sales up 34% to $615,000, and year-to-date sales up 15%. The company has expanded its lease portfolio in Manhattan, adding five locations to meet increasing demand. However, the Board has terminated the letter of intent with Xact to explore more strategic options for shareholder value. The sale of the Nicolai Street property is pending, with closure expected by July 15, but success is not guaranteed. The company focuses on high-precision measurement solutions and operates Ample Hills.

On June 7, 2022, Schmitt Industries (NASDAQ: SMIT) announced a Real Estate Purchase and Sale Agreement with Tofte Farms, LLC for its property located at 2765 NW Nicolai Street, Portland, Oregon. The property is being sold for $3,500,000, with Tofte depositing $50,000 into an escrow account. CEO Michael Zapata expressed optimism about the sale-leaseback transaction, which will provide capital to support Ample Hills' growth. The sale is subject to due diligence and is expected to close by July 15, 2022, but there is no guarantee of completion.

Schmitt Industries, Inc. (NASDAQ: SMIT) announced on May 18, 2022, that it has signed a letter of intent to sell all assets related to its Xact business line. This potential transaction is contingent upon negotiations, satisfactory due diligence by the acquirer, and approval from the Company's board. There is no guarantee that the deal will be finalized. Schmitt Industries designs and manufactures precision test products and operates Ample Hills Creamery, an ice cream manufacturer.