Xebec Provides Update on Coronavirus Impact on Global Operations
MONTREAL, March 16, 2020 (GLOBE NEWSWIRE) — 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 2020
https://www.globenewswire.com/NewsRoom/AttachmentNg/f5251bb0-e289-4124-ba19-cfaac25a70c4Our 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, Italy
https://www.globenewswire.com/NewsRoom/AttachmentNg/85dc707b-b373-494b-83a8-417a1de658dfLastly, 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.comFor more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Manager
+1 450.979.8700 ext 5762About 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.