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SusGlobal Energy Corp. Reports Third Quarter 2019 Financial Results

December 2, 2019

TORONTO, ON / ACCESSWIRE / December 2, 2019 / SusGlobal Energy Corp. (OTCQB:SNRG), the developer of SusGro®, a revolutionary pathogen-free organic liquid fertilizer, announced financial results for the third quarter ended September 30, 2019 and provided an update on its operational progress.

Recent Highlights

“We continued to work with customers and bring further products to market, while pursuing regulatory certifications. We believe we are making the necessary strategic steps to capture the immense opportunity of processing organic waste streams and diverting them from landfills, while producing regenerative products. We expect to see increasing tipping fees and compost sales in 2020,” said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. “Our goal is to drive revenue and cash flow as quickly as possible as we focus on bringing new processing sites into operation.”

Unaudited 2019 Third Quarter Financial Results

For the third quarter ended September 30, 2019, SusGlobal recorded:

About SusGlobal Energy Corp.

SusGlobal Energy Corp. (OTCQB: SNRG) the developer of SusGro™, a revolutionary pathogen-free organic liquid fertilizer is a renewables company focused on acquiring, developing and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative products application globally. It is management’s objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider, as Leaders in The Circular Economy™. For more information, please visit the Company’s website at: www.susglobalenergy.com

Safe Harbor Statement

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s objectives. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, lack of sufficient financial resources; variations in market conditions, currency and our stock; the Company’s ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company’s ability to produce energy, biogas, compost or organic fertilizer from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.

- Financial Tables Follow -

SusGlobal Energy Corp.

Consolidated Balance Sheets

As at September 30, 2019 and December 31, 2018

(Expressed in United States Dollars)

(unaudited)

September 30, 2019December 31, 2018

ASSETS

Current Assets

Cash and cash equivalents

$-$42,711

Trade receivables

149,933129,981

Inventory

27,53818,550

Prepaid expenses and deposits

18,36723,172

Total Current Assets

195,838214,414

Intangible Assets

232,796135,189

Long-lived Assets, net

4,762,9893,361,110

Long-Term Assets

4,995,7853,496,299

Total Assets

$5,191,623$3,710,713

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities

Bank indebtedness

$7,350$-

Accounts payable

708,940353,728

Government remittances payable

23,52935,169

Accrued liabilities

602,916646,003

Advance

21,166-

Current portion of long-term debt

3,785,2103,727,778

Current portion of obligations under capital lease

235,22281,109

Convertible promissory notes

1,370,683-

Mortgage payable

1,306,407-

Loans payable to related parties

-201,575

Total Current Liabilities

8,061,4235,045,362

Long-Term Liabilities

Obligations under capital lease

-207,599

Total Long-term Liabilities

-207,599

Total Liabilities

8,061,4235,252,961

Stockholders' Deficiency

Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding Common stock, $.0001 par value, 150,000,000 authorized, 42,484,531 (2018- 40,299,531) shares issued and outstanding

4,4394,031

Additional paid-in capital

7,274,4495,754,260

Subscriptions payable

-4,600

Stock compensation reserve

750,0001,330,000

Accumulated deficit

(10,766,212)(8,554,312)

Accumulated other comprehensive loss

(132,476)(80,827)

Stockholders' deficiency

(2,869,800)(1,542,248)

Total Liabilities and Stockholders' Deficiency

$5,191,623$3,710,713

SusGlobal Energy Corp.

Consolidated Statements of Operations and Comprehensive Loss

For the three-month periods ended September 30, 2019 and 2018

(Expressed in United States Dollars)

(unaudited)

For the three-month periods ended
September 30, 2019September 30, 2018

Revenue

$390,723$279,394

Total cost of sales

235,723246,369

Gross profit

155,00033,025

Operating expenses

Management compensation-stock- based compensation

85,000332,500

Management compensation-fees

81,80082,619

Marketing

5,785-

Professional fees

63,357246,245

Interest expense

152,95290,939

Office and administration

62,90639,182

Rent and occupancy

33,02454,925

Insurance

17,50814,172

Filing fees

2,5461,479

Amortization of financing costs

88,956-

Directors' compensation

(14,648)766

Repairs and maintenance

4,2191,471

Total operating expenses

583,405864,298

Net loss

(428,405(831,273)

Other comprehensive loss

Foreign exchange gain (loss)

25,828(27,107)

Comprehensive loss

$(402,577(858,380)

Net loss per share-basic and diluted

$(0.01(0.02)

Weighted average number of common shares outstanding- basic and diluted

43,082,78340,003,672

SusGlobal Energy Corp. Consolidated Reconciliation of Non-GAAP Information For the three-month periods ended September 30, 2019 and 2018 (Expressed in United States Dollars) (Unaudited)

For the three-month periods ended
September 30, 2019September 30, 2018

Net loss (GAAP)

$(428,405)$(831,273)

Add the following items:

Interest expense

152,95290,939

Depreciation and amortization

108,567100,860

Stock-based compensation

85,000332,500

Amortization of financing costs

88,956-

Adjusted EBITDA (non-GAAP)

$7,070$(306,974)

Contact

SusGlobal Energy Corp.

Marc Hazout, President and CEO

(416) 223-8500 or Toll Free: 1-866-512-7374

Email:

SOURCE: SusGlobal Energy Corp.

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