Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a
global provider of clean energy solutions announced today that it
has been deemed an “essential business” and will continue its
regular course of operations and manufacturing in Blainville,
Québec.
On March 23rd, 2020, Québec Premier François Legault announced
the closure of all non-essential businesses in the province as of
yesterday. Under the provisions of the mandate, Xebec qualifies as
an essential business as a supplier of critical equipment and
services to key sectors such as energy, healthcare, and
pharmaceuticals.
Xebec has supplied more than 10,000 pieces of equipment
used by organizations at the forefront of the worldwide
outbreak
The company’s industrial service and support business is a key
supplier of various types of equipment that are crucial to the
operations of essential organizations. For example, Xebec is a
leading supplier of medical air systems with over 100 installations
in Québec hospitals and installations in British Columbia, Alberta,
and other Canadian Provinces.
In addition, other Xebec products can be found in use by food
& beverage, pharmaceutical manufacturing, oil refineries, pulp
and paper production, electrical power generation, and natural gas
transmission and distribution industries across Canada and North
America, all listed as “essential businesses & services” by the
Québec Government and critical to society in these unparalleled
times.
It is key for Xebec to sustain its manufacturing and maintenance
operations to support these businesses. As a result, our
manufacturing facilities in Québec are at near full capacity.
Further update on global operations
As per our last update on March 16th, 2020, our operations in
Shanghai, China are fully operational with deliveries having
restarted three and a half weeks ago and continue to expand.
Manufacturing in our Italian subsidiary remains on hold and the
timeline for restarting has been extended to a later date. Xebec
does not expect to restart before mid-April at the earliest.
Similar to our Québec operations, our subsidiary Compressed Air
International Inc. based in Toronto will remain open as an
essential business. Xebec’s recent acquisition, CDA Systems in
Livermore, California, has been shut down and is currently only
available to provide emergency onsite maintenance and service.
Xebec continues to be well-positioned to work
through these disruptions with its strong balance sheet that
include more than $20 million of cash on hand. In addition, Xebec
has approximately $18 million in outstanding warrants, exercisable
at $1.05 and $1.85 over the next 4 months. 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:"As we navigate through
these unprecedented times, Xebec is focused on contributing to the
efforts to fight the novel coronavirus while maintaining business
continuity. We all need to do our part in supporting frontline
workers who are risking their lives every day to battle the virus
and take care of the sick and vulnerable.
Many see Xebec as a cleantech and renewable
energy leader, but the foundation of the company was built on an
industrial compressed air business that goes back 50 years. Today
we are still supporting the industry with compressed air products
and we continue to offer medical air systems of which over one
hundred are in operation in Canada. Additionally, we have offered
to the Governments of Canada and Québec our production capability
for oxygen concentrators and medical air systems. If they are
needed or are in short supply, we stand ready to produce them.
We’re proud to do our part in contributing to the cause and will be
working diligently to ensure we can continue doing so over the
coming months.
As we’ve learned from China, we’ve made
arrangements to first protect our employees, customers and
partners. All of our administrative and sales personnel now work
from home. For our production staff we’ve implemented strict codes
and guidelines to reduce risk, in line with Government regulations.
Now is the time to be united as the need for action grows stronger
every day."– Kurt Sorschak, President and CEO,
Xebec Adsorption Inc.
Related
links:https://www.xebecinc.comhttps://investors.xebecinc.com/press/2020-03-16-xebec-provides-update-on-coronavirus-impact-on-global-operations/
For more information:Xebec
Adsorption Inc. Brandon Chow, Investor Relations Manager
bchow@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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