Implementation of New Operating Model for Pyxus' Consumer
Branded Businesses to Accelerate Growth and Operational
Efficiencies
MORRISVILLE, N.C.,
Feb. 24, 2020 /PRNewswire/ -- Pyxus International, Inc. (NYSE:
PYX), a global value-added agricultural company announced
today the next step in its transformation journey, which
includes the consolidation of its emerging market branded
businesses under a new operating model, the implementation of a
Global Operations Efficiency Program, and a streamlined senior
management reporting structure geared toward driving
growth.
New Consumer Brands Businesses Operating Model
Transformation is at the core of Pyxus' strategic plan to drive
value creation. Pursuant to this strategy, the Company is
announcing an operating model that aligns its B2C and B2B e-liquid,
legal cannabis, industrial hemp, and CBD businesses and brands
under FIGR Brands, Inc., a wholly-owned Canadian subsidiary of
Pyxus. The combination of the Company's investments in Purilum,
Humble Juice Co., Criticality and Twelfth State Brands into one
operating model is designed to allow Pyxus to more effectively
leverage the entities' collective strengths to build a global
consumer products brand business that can deliver the next
generation of THC, CBD and e-liquid consumer products to legal
markets around the world.
Harvey Carroll, current president
of FIGR Brands, will manage the new operating model and will report
to Pieter Sikkel, Pyxus President
and CEO.
Global Operations Efficiency Program
Pyxus continues to evaluate ways to improve its operational
flexibility and efficiencies relative to its supply chain, the
global trade environment, and in keeping with consumer trends and
demand. The latest phase of this process, the Global Operations
Efficiency Program, is currently underway and is a comprehensive
review of Pyxus' global footprint and cost-structures. This review
encompasses all of Pyxus' business units, including FIGR Brands and
its leaf tobacco business, Alliance One International, with the aim
to create more value for its customers and shareholders and
position the Company for long-term success. Pyxus management will
report on progress in the implementation of the Global Operations
Efficiency effort by May 1, 2020.
Senior Leadership Announcements
Several leadership changes accompany this next phase of Pyxus'
transformation and are effective immediately.
- Upon the recommendation of President and CEO Pieter Sikkel, the Board of Directors has
appointed Martin R. Wade, III as
non-executive Chairman of the Board in order to allow Mr. Sikkel to
focus on leading the business forward in the next phase of the
Company's transformation.
- Daniel A. Castle, founder of
Castle Brand Group, will transition from being a member of the
Board of Directors to serving as a consultant to the Company. Mr.
Castle's extensive experience in elevating brands in the B2C space
is anticipated to help accelerate the growth of the Company's
branded consumer products businesses.
- As a result of this new phase in our transformation,
Bryan Mazur, who has served as
Executive Vice President, Global Specialty Products, will be
leaving the company as that position is being eliminated. Pyxus is
deeply appreciative of Mr. Mazur's contributions during his
two-year tenure at the company especially to the One Tomorrow
transformation initiative.
"Pyxus continues to transform how it operates as we work to
build a more streamlined organization for the future," said
Pieter Sikkel, President and CEO of
Pyxus International. "The new consumer products branded business
model is a natural milestone in our Company's transformation
journey to deliver superior value for the benefit of our
stakeholders. We remain committed to achieving long-term,
sustainable growth and look forward to building a stronger Pyxus as
we continue to execute against our vision to transform people's
lives so that together we can grow a better world."
Pyxus will continue to play a key role in supporting FIGR
Brands and, as and when, global cannabinoid regulation allows,
FIGR Brands will leverage Pyxus' expertise in agronomy and
traceability for services related to growing and purchasing, which
is expected to support FIGR Brands' international expansion
efforts.
About Pyxus International, Inc.
Pyxus
International Inc. (NYSE:PYX) is a global agricultural company with
145 years' experience delivering value-added products and services
to businesses, customers and consumers. Driven by a united
purpose—to transform people's lives, so that together we can grow a
better world—Pyxus International, its subsidiaries and affiliates,
are trusted providers of responsibly sourced, independently
verified, sustainable and traceable agricultural and
consumer-driven products and ingredients. For more information,
visit www.pyxus.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These statements are based on current expectations of
future events. Such statements include, but are not limited to,
statements about future financial and operating results, plans,
objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based on the current
beliefs and expectations of management and are subject to
significant risks and uncertainties. If underlying assumptions
prove inaccurate or known or unknown risks or uncertainties
materialize, actual results may differ materially from those
currently anticipated expected or projected. The following factors,
among others, could cause actual results to differ from those
expressed or implied by the forward-looking statements: changes in
the timing of anticipated shipments, changes in anticipated
geographic product sourcing, developments in relevant capital
markets affecting the terms and availability of financing,
political instability, currency and interest rate fluctuations,
shifts in the global supply and demand position for tobacco
products, changes in tax laws and regulations or the interpretation
of tax laws and regulations, resolution of tax matters, adverse
weather conditions, the impact of disasters or other unusual events
affecting international commerce, including impacts from the strain
of coronavirus reported to have recently surfaced in Wuhan, China, changes in costs incurred in
supplying products and related services, uncertainties with respect
to the impact of regulation associated with consumer products
business lines, including the risk of obtaining anticipated
regulatory approvals in Canada and
for e-liquids products in the United
States, uncertainties regarding the regulation of the
production and distribution of legal cannabis and industrial hemp
products and continued compliance with applicable regulatory
requirements, uncertainties with respect to the development of the
industries and markets of the consumer products business lines,
consumer acceptance of products offered by the consumer products
business lines, uncertainties with respect to the timing and extent
of retail and product-line expansion, the impact of increasing
competition in the consumer products business lines, uncertainties
regarding obtaining financing to fund planned facilities
expansions, the possibility of delays in the completion of
facilities expansions and uncertainties regarding the potential
production yields of new or expanded facilities, as well as the
progress of legalization of cannabis for medicinal and adult
recreational uses in other jurisdictions. Additional factors with
respect to risks and uncertainties with respect to an investment in
the common stock of Pyxus International, Inc. can be found in its
Annual Report on Form 10-K for the period ended March 31, 2019 and its other filings with the
Securities and Exchange Commission (the "SEC") which are available
at the SEC's Internet site (http://www.sec.gov). Pyxus does not
undertake to update any forward-looking statements made in this
press release to reflect any change in management's expectations or
any change in the assumptions or circumstances on which such
statements are based.
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SOURCE Pyxus International, Inc.