Eco Soil Systems Inc. announced in a letter to shareholders that it had engaged an investment banker to help the company reorganize its core business.
The company also announced that as part of this process, it was actively seeking to sell non-core assets. The company intends to use proceeds from any sales of these assets to pay down debt and improve the company's working capital position. The company also announced that, as earlier reported, it has dramatically reduced its burn rate, which included substantial headcount reductions and salary cuts at the senior levels of the company's management, among other efforts to reduce the company's selling, general and administrative expenses.
The core technologies, including the BioJect program and FreshPack products, will remain the centerpiece of the company's business going forward. These products will be targeted at the turf industry, with the Simplot distribution system and new independent distributors spearheading the company's sales efforts. The company intends to pursue governmental markets and the sports turf markets, along with the company's current efforts in the golf industry.