CEMATRIX Corporation Provides Business Update; Addresses COVID-19 Impact
CALGARY, Alberta, March 26, 2020 (GLOBE NEWSWIRE) — CEMATRIX Corporation (TSXV: CVX) (the “Corporation” or “CEMATRIX”) a North American leading manufacturer and supplier of technologically advanced cellular concrete products would like to provide a business update related to the impact of COVID-19 and the measures taken by the Corporation across all CEMATRIX Group of companies. While the situation remains extremely fluid, there have been no significant delays or cancellations to date, other than for a few projects that were originally scheduled to be completed in the first quarter. These projects are now expected to be completed in the second quarter, but these delays have caused a short-term cash flow issue that we continue to manage. Even with the short-term delays, approximately $20 million in projects are still scheduled to be placed before the end of the second quarter and many of these projects are either underway, or being mobilized to, or scheduled for completion, once other projects are complete. The COVID-19 dynamics continue to evolve on a daily basis and could impact the Corporation and our operating subsidiaries including CEMATRIX (Canada) Inc. (“CCI”), MixOnSite USA Inc. (“MOS”) and Pacific International Grout Company (“PIGCO’) in other ways.
As a result of COVID-19 and its potential impact, the Corporation has taken numerous steps to ensure the health and safety of employees, clients and partners. The following is a copy of a letter sent to current clients and partners.Re: COVID-19 MeasuresTo our valued clients and partners;CEMATRIX remains fully operational and committed to our staff, clients, and partners as we all work together to keep each other safe in the face of COVID-19. The health and safety of our team, and all those we work and interact with, is our first and foremost priority.We are committed to delivering our products and services in the safest and most responsible way possible, while closely monitoring and acting in accordance with the guidance of government and public health authorities.CEMATRIX continues to honour deadlines and fulfil obligations. All our office employees have been encouraged and supported to continue their important roles and contributions from home and remain reachable by email and phone. All non-essential business travel and in-person meetings are restricted but we are prepared with the necessary tools to effectively handle our client support roles remotely.As always, CEMATRIX operations staff are committed to working in accordance with project/site specific protocols. Due to the nature of our work, CEMATRIX can execute our duties on-site with a small workforce and little oversight and interaction with others.We will continue to monitor the situation closely and will keep you advised of any expected changes to our level of service.Should you have any questions or concerns, please feel free to contact your local representative.“In these unprecedented times with continuous change, I am pleased to announce that as of this date, none of our projects are cancelled and all of our projects continue to go ahead as planned”, stated Jeff Kendrick, President and CEO of CEMATRIX. “We have up to $20 million in projects that are scheduled to be placed before the end of the second quarter. As the COVID-19 situation continues to evolve, circumstances may change, and we may encounter some project delays. If this were to occur, only our projected completion dates will be affected. There will be no outright cancellations that are affecting many other businesses across North America and Globally. We are very fortunate. Currently, infrastructure projects are considered essential services by most States and Provinces and are exempt from mandatory shutdowns. Should this situation change and Governments order a complete shut down for a period of time, we could continue to face some short term cash flow issues, but mechanisms have and are being put in place by various Government agencies to assist in this situation. Furthermore, the good news is that these contracted projects will be ready to go into the ground as soon as the shutdown is lifted, a scenario that CEMATRIX has anticipated and is prepared for.”“Most importantly, we thank you for your continued support and wish you and your families all the best during these difficult times. Stay healthy and safe, listen to your local healthcare and Government authorities and join us all in ensuring that all of us across North America stay safe together,” concluded Mr. Kendrick.ABOUT CEMATRIX
CEMATRIX is a rapidly growing, cash flow positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations across North America. This unique cement-based material with superior thermal protection delivers cost-effective, innovative solutions to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets. Through recent acquisitions of Chicago based MixOnSite and Bellingham based Pacific International Grout, CEMATRIX is now North America’s largest Cellular Concrete company.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.For further information, please contact:Jeff Kendrick – President and Chief Executive Officer
Phone: (403) 219-0484Glen Akselrod – President, Bristol Capital
Phone: (905) 326 1888 ext 1
firstname.lastname@example.orgJeff Walker, The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
email@example.comForward-looking information: This news release contains certain information that is forward looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, expect”, “would’ or other similar words). Forward looking statements in this document are intended to provide CEMATRIX security holders and potential investors with information regarding CEMATRIX and its subsidiaries’ future financial and operations plans and outlook. All forward looking statements reflect CEMATRIX’s beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward looking information. CEMATRIX undertakes no obligation to update or revise forward looking information except as required by law. For additional information on the assumptions made and the risks and uncertainties which may cause actual results to differ from the anticipated results, refer the CEMATRIX’s Management Discussion and Analysis dated November 7, 2019 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.