H2O Innovation Provides an Update on the COVID-19 Situation and Implement Extraordinary Measures to Reduce Expenses
March 31 2020 - 8:00AM
(TSXV: HEO) – H2O Innovation Inc. (“H2O Innovation” or the
“Corporation”) is pleased to provide a further update following its
March 17th notice to customers, suppliers and investors in response
to the unprecedented and evolving COVID-19 pandemic.
The Corporation wishes to inform of the
continuity of all its operations, as it is considered of essential
nature by the governments where the Corporation undertakes its
activities. However, although H2O Innovation is maintaining its
operations, its business pillars could be impacted differently,
depending on their respective activities, their geographical
location and their supply chains.
H2O Innovation’s financial situation is healthy
with sufficient cash to support its operations. In order to protect
its balance sheet during this global COVID-19 crisis which we don’t
know how long it may persist, the Corporation implemented
additional special and temporary measures to reduce its expenses.
Hence, starting Monday 30, 2020, the Corporation announced a
reduction of 10% of the wages for most of its employees and a 15%
reduction for its officers and its Board of Directors, for an
undetermined period. The measures also include temporary layoffs in
its Ham-Nord facility, in Quebec, as the maple season is winding
down and in its Minneapolis facility, since the project
manufacturing has slowed down due to delay in project schedule.
These collective efforts from the employees will reduce the
expenses and help the Corporation maintain cash flows as healthy as
possible.
The currency situation is currently having a
positive impact on the Corporation’s liquidity and the financial
results, as most of its sales are in US dollars and its reporting
currency is the Canadian dollar. Finally, H2O Innovation is staying
informed on the measures announced by the different governments
that could be available to its employees and the Corporation.
“We are taking additional measures to ensure the
long-term continuity of our operations, in response to delays in
projects. With 200 water and wastewater utilities operated by our
team, combined to the manufacturing of specialty chemicals for
water treatment plants around the world, the business model we
built is resilient. Also, the strategic acquisitions completed in
the past years strengthened our model by reducing the risk related
to a single geographical market or a single industry. We
intentionally increased the level of recurring revenues, which
helps alleviate the effect of the general slow down. In a spirit of
prudent management, preventive measures are taken to maintain a
healthy financial position. We appreciate the efforts made by each
of our employees, and we can not thank them enough for their
courage, their understanding and their flexibility amid this
challenging period”, stated Frédéric Dugré, President and
Chief Executive Officer of H2O Innovation.
H2O Innovation previously announced a number of
measures to ensure the health and safety of its employees and
customers while maintaining its operations, including: increasing
cleaning and hygiene procedures at all facilities across the
organization; cancelling all non-essential and cross-border travel;
encouraging employees to work from home when possible; and taking
appropriate precautions with visitors to its facilities.
As mentioned previously in the press release
dated March 17, 2020, the Corporation has created an internal
COVID-19 intervention team (gathering top-management together with
human resources, legal, operations and communications), which is
meeting daily to ensure continuous communication to all
stakeholders. Adequate measures are taken, and decisions are made
daily to ensure the continuity of the Corporation and to face the
everyday challenges.
About
H2O Innovation H2O Innovation designs and
provides state-of-the-art, custom-built and integrated water
treatment solutions based on membrane filtration technology for
municipal, industrial, energy and natural resources end-users. The
Corporation’s activities rely on three pillars which are i) water
& wastewater projects, and aftermarket services; ii) specialty
products, including a complete line of specialty chemicals,
consumables and specialized products for the water treatment
industry; and iii) operation and maintenance services for water and
wastewater treatment systems. For more information, visit
www.h2oinnovation.com.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) nor the NYSE Euronext Growth Paris accepts
responsibility for the adequacy or accuracy of this release.
Source: H2O Innovation Inc.
www.h2oinnovation.com Contact: Marc
Blanchet+1 418-688-0170 marc.blanchet@h2oinnovation.com
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