MyCelx Tech. Corp. MyCelx Tech. Corp.. - Trading Update

Mycelx Technologies

14/04/2020 07:00

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
Kim Slayton, CFO
Tel: +1 888 306 6843
Numis Securities Limited
John Prior
James Black, Emily Morris, Alamgir Ahmed
Tel: +44 20 7260 1000
Celicourt
Mark Antelme
Jimmy Lea
Tel: +44 20 8434 2754

 

 

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.

 

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