MyCelx Technologies Corporation Trading Update (4438J)
April 14 2020 - 2:00AM
UK Regulatory
TIDMMYX TIDMTTM
RNS Number : 4438J
MyCelx Technologies Corporation
14 April 2020
14 April 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). This inside
information is now considered to be in the public domain.
MYCELX TECHNOLOGIES CORPORATION (AIM: MYX)
Trading Update
Further to the announcement on 5 March 2020, MYCELX Technologies
Corporation ("MYCELX" or the "Company"), the clean water technology
company providing patented solutions for the Oil and Gas market and
commercial industrial markets worldwide, provides a trading update
with respect to current market conditions.
Following the recent oil price decline, combined with the global
COVID-19 pandemic, market conditions have deteriorated further.
However, the Company remains operational and continues to function
in shipping, production and operations across all of its active
sites. MYCELX has taken decisive action to protect its employees by
stopping all non-essential work travel and installing a business
wide work from home policy, where possible. The Company has also
implemented company-wide cost saving measures, including expanding
on previous cost cutting initiatives and implementing a 15% pay cut
across the business, except for hourly rate employees. These
measures will limit the effects of the unprecedented environment
and protect the Company's balance sheet.
The Company remains in active dialogue with its customers and
vendors. As referred to in the Company's last Trading Update,
MYCELX made a strong start to the year following the award of three
new purchase orders in Q1 2020. The business is well positioned to
benefit from an uptick in bidding activity once the COVID-19
pandemic is over and pressure on oil prices has eased.
MYCELX has also applied, with the support of its Bank, for the
United States Small Business Administration's Payroll Protection
Program. This is a forgivable loan program set up to support
businesses and can be used to offset payroll and other qualified
expenses.
MYCELX continues to actively monitor its 2020 pipeline. Given
the global market uncertainty, the Company has decided to withdraw
its guidance published on 5 March 2020, but will continue to
monitor developments and provide further updates as necessary. The
Company's cash position remains strong with current unrestricted
cash of $7 million including a $1.8 million draw on its line of
credit.
Commenting on the market update, Connie Mixon, CEO, said:
"Whilst these are the most challenging conditions we have faced,
I am pleased with how we are performing as a business. The safety
of our employees is of paramount importance to us, so we have
installed a number of measures which safeguard their welfare. The
cost cutting measures we have in place will ensure the Company
maintains its financial footing and we are well placed to
capitalize on bidding activity and projects as and when the market
recovers."
For further information please contact:
MYCELX Technologies Corporation
Connie Mixon, CEO Tel: +1 888 306 6843
Kim Slayton, CFO
Numis Securities Limited
John Prior Tel: +44 20 7260 1000
James Black, Emily Morris, Alamgir Ahmed
Celicourt
Mark Antelme Tel: +44 20 8434 2754
Jimmy Lea
Forward Looking Statements
This release contains certain statements that are or may be
"forward-looking statements". These statements typically contain
words such as "intends", "expects", "anticipates", "estimates" and
words of similar importance. All the statements other than
statements of historical facts included in this announcement,
including, without limitation, those regarding the Company's
financial position, business strategy, plans and objectives of
management for future operations (including development plans and
objectives relating to the Company's products and services) are
forward-looking statements. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future
and therefore undue reliance should not be placed on such
forward-looking statements. There are a number of factors that
could cause the actual results, performance or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous
assumptions regarding the Company's present and future business
strategies and the environment in which the Company will operate in
the future and such assumptions may or may not prove to be correct.
Forward-looking statements speak only as at the date they are made.
Neither the Company nor any other person undertakes any obligation
(other than, in the case of the Company, pursuant to the AIM Rules
for Companies) to update publicly any of the information contained
in this announcement, including any forward-looking statements, in
the light of new information, change in circumstances or future
events.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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