Tornado Global Hydrovacs Responds to Covid-19 Pandemic
April 09 2020 - 8:30AM
Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH:
TSX-V) provides the following update regarding our response to the
ongoing Covid-19 pandemic.
With a number of hydrovac truck orders put on
hold by our clients as a result of the Coronavirus pandemic, the
Company has reduced truck production and put in place an aggressive
program to conserve cash. The Company was outsourcing approximately
1/3 of its production before the pandemic and this has been
discontinued entirely. Production at the Company’s manufacturing
facility in Stettler has also been reduced by approximately 60% for
the next three months.
Effective April 8th, approximately 65% of the
Company’s employees were temporarily laid off. In addition, the
Chief Executive Officer, Chief Financial Officer and 2 other head
office employees have taken a significant salary reduction. These
measures are intended to allow the Company to conserve cash and
maintain its workforce through a period of lower production. The
cost savings generated by the temporary layoffs and salary
reductions are intended to protect the Company's balance sheet
and to allow the Company to quickly ramp-up production once
the pandemic has passed. The service and parts team are
expected to remain unaffected so they can continue to assist
customers.
The governments of Canada and Alberta have
introduced wage subsidy programs and loan guarantee initiatives.
The Company believes that it qualifies for some of these
initiatives and will apply for applicable programs as appropriate.
The Company anticipates recalling the employees back to work when
the orders that were put on hold get reactivated and new orders are
awarded.
About Tornado Global Hydrovacs
Ltd.
The Company designs and manufactures hydrovac
trucks in Canada and sells hydrovac trucks for excavation service
providers to the municipal and oil and gas markets in Canada and
the USA. Hydrovac trucks use high pressure water to pulverize soil
and turn it into mud, and then vacuum up the resulting mud into its
tank. Tornado currently operates in North America. In China, the
Company’s subsidiary is used principally to source certain parts to
the Company’s North America operations.
For more information about Tornado Global
Hydrovacs Ltd., visit www.tornadotrucks.com or contact:
Bill RollinsChief Executive OfficerPhone: (403) 204-6333Email:
brollins@tghl.ca |
Al RobertsonChief Financial OfficerPhone: (403) 204-6363Email:
arobertson@tghl.ca |
Advisory
Certain statements contained in this news
release constitute forward-looking statements. These statements
relate to future events. All statements other than statements of
historical fact are forward-looking statements. The use of the
words “anticipates”, “should”, ‘‘may”, “expected”, “expects”,
“believes” and other words of a similar nature are intended to
identify forward-looking statements. These statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. Although Tornado
believes these statements to be reasonable, no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. Such statements include statements with
respect to the expected result of the response to the Covid-19
pandemic, the anticipated conservation of the Company’s cash and
ability to maintain its workforce through a period of lower
production, the intention to protect the Company’s balance sheet,
the anticipated recall of the Company’s employees and future
ramp-up of production and the belief that the Company will qualify
for the government wage subsidy programs and loan guarantee
initiatives. Actual results could differ materially from
those anticipated in these forward-looking statements as a result
of prevailing economic conditions, and other factors, many of which
are beyond the control of Tornado. The forward-looking statements
contained in this news release represent Tornado’s expectations as
of the date hereof and are subject to change after such date.
Tornado disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities regulations.
Neither the Exchange nor its Regulation
Service Provider (as that term is defined in policies of the
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
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