Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a
global provider of clean energy solutions is pleased to provide an
update on the novel coronavirus (COVID-19) impact on Xebec’s global
operations. Xebec currently has operations and manufacturing
capacity in three countries, which include: China, Italy, and
Canada.
Xebec’s manufacturing operations in Shanghai,
China (“Xebec Shanghai”) were previously affected by COVID-19 and
were shut down for three additional weeks after the normal two-week
Chinese New Year holiday. The facility has since restarted and is
now fully operational. Over this period, the rest of the operations
were working remotely to continue progress on designs of various
customer contracts. As a result, Xebec Shanghai may experience a
moderate impact on Q1/20 revenues and earnings but does not expect
a material impact on full-year 2020.
One of Xebec Shanghai’s deliveries (a hydrogen
purification unit) since the factory restarted in late February
2020https://www.globenewswire.com/NewsRoom/AttachmentNg/f5251bb0-e289-4124-ba19-cfaac25a70c4
Our operations in Lombardy, Italy were recently
impacted by the mandated lockdown of the country. Although Xebec
does not have full manufacturing capabilities in Italy, projects
are mostly outsourced into the supply chain. We are now starting to
see delays from suppliers based in Northern Italy because of the
transportation shutdown.
There are two ongoing projects in Italy that are
under construction, one located in Sicily and the other in Genova.
Work on both projects is now halted and will restart after April
3rd at the earliest. Similar to Xebec Shanghai, Xebec’s operations
in Italy may experience moderate impacts on Q1 and Q2 2020 revenues
and earnings, but we do not expect a significant impact on full
year numbers.
Xebec’s ongoing delivery of an agri-food waste
project in Sicily,
Italyhttps://www.globenewswire.com/NewsRoom/AttachmentNg/85dc707b-b373-494b-83a8-417a1de658df
Lastly, Xebec’s Canadian operations in Québec
currently remain unaffected and we are operating close to capacity.
Our schedule for North American deliveries remains the same and no
impact has so far been experienced due to the coronavirus. We are
working on a multitude of shipments for the North American market
as evidenced by recent contract announcements.
Xebec is well-positioned to work through these
disruptions with its strong balance sheet that includes more than
$20 million of cash on hand and approximately $18 million in
outstanding warrants, exercisable at $1.05 and $1.85 over the next
4 months. In addition, our quote log continues to increase and now
exceeds $937.0 million (as of March 13th, 2020) and our order
backlog stands at $95.1 million (as of January 28th, 2020).
The company continues to follow the current
developments and will provide further communications should the
effect on operations change materially.
Quotes:“COVID-19’s spread has
left both a human and economic toll in its wake. Xebec’s first
priority is to ensure the health and safety of its employees,
customers, and partners. We continue to watch the situation closely
as we execute our rapid scale up.
We have been dealing with the novel coronavirus
since its first outbreak in China 12 weeks ago. This has led Xebec
to prepare for a similar situation in North America and we are in
the fortunate situation to have all necessary protocols in place to
continue operating in this challenging environment. Over the last
10 weeks, we have increased our inventory and work in progress
levels to withstand certain supply chain disruptions and continue
our Blainville operations to the best possible extent. The steps we
have taken to protect our stakeholders include travel restrictions,
a significant reduction of in-person meetings as we have started to
utilize remote working solutions such as telephone and video
conferencing and instant messaging applications. We have also
provided a number of our employees with laptops to allow working
from home.
Last week Xebec has implemented a COVID-19
Protocol for all its North American employees and suppliers, which
includes actions for a clean and disinfected work environment,
travel and self-quarantine guidelines and remote working
instructions. I believe we have taken reasonable steps to protect
not only our employees, suppliers and customers but also safeguard
to the best possible extent our ability to deliver financial
results that will protect the expectations of our
shareholders.”– Kurt Sorschak, President and CEO,
Xebec Adsorption Inc.
Related
links:https://www.xebecinc.com
For more information:Xebec
Adsorption Inc.Brandon Chow, Investor Relations
Managerbchow@xebecinc.com+1 450.979.8700 ext 5762
About Xebec Adsorption
Inc.Xebec is a global provider of gas generation,
purification and filtration solutions for the industrial, energy
and renewables marketplace. Well-positioned in the energy
transition space with proprietary technologies that transform raw
gases into clean sources of renewable energy, Xebec’s 1500+
customers range from small to multi-national corporations,
governments and municipalities looking to reduce their carbon
footprints. Headquartered in Montréal, Quebec, Canada, Xebec has
several Sales and Support offices in North America and Europe, as
well as two manufacturing facilities in Montréal and Shanghai.
Xebec trades on the TSX Venture Exchange under the symbol XBC. For
more information, www.xebecinc.com.
Cautionary Statement Neither
TSX Venture Exchange 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
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements, and subject to risks and uncertainties.
Generally, forward-looking statements can be identified by the use
of terminology such as “plans”, “seeks”, “expects”, “estimates”,
“intends”, “anticipates”, “believes”, “could”, “might”, “likely” or
variations of such words, or statements that certain actions,
events or results “may”, “will”, “could”, “would”, “might”, “will
be taken”, “occur”, “be achieved” or other similar expressions.
Forward-looking statements, including statements concerning future
capital expenditures, revenues, expenses, earnings, economic
performance, indebtedness, financial condition, losses and future
prospects as well as the expectations of management of Xebec with
respect to information regarding the business and the expansion and
growth of Xebec operations, involve risks, uncertainties and other
factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Forward-looking statements are
subject to business and economic factors and uncertainties, and
other factors that could cause actual results to differ materially
from these forward-looking statements, including the relevant
assumptions and risks factors set out in Xebec's public documents,
including in the most recent annual management discussion and
analysis and annual information form, filed on SEDAR at
www.sedar.com. Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others,
the uncertain and unpredictable condition of global economy,
Xebec’s capacity to generate revenue growth, limited number of
customers, and other factors. Although Xebec believes that the
assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed times frames or at all. Except where required by
applicable law, Xebec disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
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