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Xebec Reports Record 3rd Quarter 2019 with 136% in Revenue Growth
- EBITDA of $1.5million and Net Profit of $1.0 million -
MONTREAL, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) ("Xebec"), a global provider of clean energy solutions announced today its 2019 third quarter and nine-month periods results, with the following highlights:
~ Record revenues of $13.2 million in the third quarter of 2019 compared to $5.6 million for the same period in 2018, a 136% increase.
~ Positive EBITDA at $1.5 million for the third quarter 2019 compared to $0.1 million for the same period in 2018.
~ Net profit of $1.0 million or $0.02/share for the third quarter 2019, compared to a net loss of ($0.4) million or ($0.01)/share for the same period in 2018.
~ Working capital increased to $19.0 million as of September 30, 2019, for a current ratio of 2.3:1 compared with working capital of $5.2 million and a 1.6:1 ratio on December 31, 2018.
Financial Results
Revenues of $35.7 million for the nine-month period ended September 30, 2019, compared to $14.1 million for the same period in 2018, a 153% increase. The increase is mainly explained by the higher volume of major cleantech contracts.
Gross profit of $11.4 million or 32% of revenues for the nine-month period ended September 30, 2019, compared to $4.2 million for the same period in 2018, a 171% increase compared to the same period in 2018. The company has higher gross margins in the cleantech segment and a better absorption of the overhead costs due to a higher volume of sales.
Net profit of $2.5 million or $0.04 per share for the nine-month period ended September 30, 2019, compared to a net loss of ($1.9) million or ($0.04) per share for the same period in 2018, an improvement of $4.4 million. The increase is mainly due to higher sales and margins.
Positive EBITDA of $4.4 million for the nine-month period ended September 30, 2019, compared to ($0.4) million for the same period in 2018, an increase of $4.8 million.
Backlog increased by $5.5 million, from $65.5 million on November 8, 2018, to $71.0 million on November 11, 2019.
Awarded Tenders of $26.0 million as of November 11, 2019 to be contractually formalized into the backlog over the next 12 to 14 weeks.
Selling and administrative expenses increased by $2.8 million in the nine-month period ended September 30, 2019, compared to the same quarter of 2018. This is primarily due to an organizational scale-up of employees and associated costs to support the increased level of sales, order backlog and building quote log.
Cash on hand of $10.2 million and increased working capital of $19.0 million as of September 30, 2019, compared to $5.2 million on December 31, 2018.
Bought Deal Public Offering Units closed on July 4, 2019 for $11.6 million and Listing of Warrants.
Unsecured Convertible Debentures issued on November 16, 2017 for $2 million has been completely converted as of November 11, 2019.
CEO Quote:
“I am pleased to see that our team is implementing and executing the strategy we had outlined for Xebec’s growth as a sustainable and profitable clean tech company. Our rapid growth in the clean tech space is underpinned by a strong industrial and service business that is supportive of our cleantech operations. The benefits of this strategy will become more evident as we deploy more RNG plants and the infrastructure projects over the next few years. With strong and balanced growth in Europe, North America and China we are also benefitting from our global presence and associated market exposure. I am also excited about our activities in the gasification, carbon capture and hydrogen markets and we expect to discuss more about these opportunities in the coming quarters”. Operationally, we are making progress in establishing a strong supply chain to support our growth and we expect this to be a focus in the coming year leading to improved lead times and higher margins for our products.”
– Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
Guidance for the remainder of 2019
Our outlook for the Cleantech segment remains unchanged from our previous guidance. Our Industrial Service and Support segment continues to grow in line with our acquisition strategy. Overall, we expect significant revenue growth in 2019. This growth includes our European and Chinese subsidiaries. Our guidance for the remainder of 2019 is based on current orders being processed plus some short-term orders through year end, mainly in our Industrial Service segment. We adjust our revenue guidance for 2019 to between $48.0 to $49.0 million and basic earnings per share (EPS) of $0.06 to $0.07.
Execution and organizational development will be a key factor for the continued successful growth of Xebec. Management recognizes this and is fully focused on operational performance and the creation of an environment that will allow the company to scale. We are working on expanding our managerial capabilities by building strong results-driven teams that will deliver on the opportunities facing us.
Cleantech Systems
Our renewable gas solutions are growing in line with our expectations and delivering anticipated results. We continue to regard quotes as an early indicator for future order activity. Our quote log continues to increase and now exceeds $880.0 million and our order backlog stands at $71.0 million. Xebec has also been awarded a total of $26.0 million in tenders (including a landfill) that will be contracted into our backlog over the next 12 to 14 weeks. Landfill orders will be instrumental to our continued growth in 2020 and beyond. These numbers reflect the status as of November 11th, 2019.
We maintain our 2019 guidance for RNG systems and equipment and expect segment growth between 130% to 150% in 2019, representing revenues in the $34 to $36 million range.
Industrial Service and Support
Xebec continues to pursue organic and inorganic growth opportunities in this segment and expects to double revenues from $6.1 million in 2018 to about $11 to $12 million in 2019. We are on track to hit these numbers. We have introduced new products in 2019 and will be adding further products over the coming months to help boost our overall revenues and gross margins.
Our first acquisition, Compressed Air International (CAI) in Ontario, has performed exceptionally well in the first three quarters and is on track to grow revenues by 25% this year. As previously stated, Xebec is working on its next two acquisitions and expects to announce one acquisition on the West Coast before the end of 2019.
Renewable Gas Infrastructure
Canada has two provinces that currently offer renewable gas off-take agreements or GPAs (Gas Purchase Agreements) with terms of up to 20 years and prices of up to $30/GJ. The Liberal Government has just won re-election and consequently, Xebec expects the Canadian Clean Fuel Standard (CFS) to come into law by the middle of 2020. The CFS will create significant demand for RNG over the next 10 years and, according to Xebec’s own estimates, will require investment into renewable gas infrastructure of approx. $15 to $18 billion and demand for RNG systems of approx. $2.2 to $2.7 billion over the next 10 years.
In addition, Southern California Gas Company (SoCalGas) earlier this year announced a target of 20% RNG by 2030, offering further unique investment opportunities. As previously stated, Xebec is actively working on the establishment of its RNG Infrastructure business which will build, own and operate (BOO) high-quality renewable gas assets in Canada and the United States, and sell renewable natural gas to obligated parties and other third-party off-takers. Xebec continues to work towards a first project, and we continue to anticipate an announcement before year-end. No revenues or costs have yet been recorded.
Guidance for 2020
For 2020 Xebec expects continued growth and improved profitability. Given the current order backlog of $71.0 million and our $26.0 million in awarded tenders, we expect consolidated revenues for 2020 in the range of $80 to $90 million, net earnings of 7 to 9% and EBITDA margins of 11 to 13%.
More specifically, revenues in our Cleantech segment are expected to be $50 to $55 million and revenues from our Industrial Service & Support segment are expected to grow to $30 to $35 million with half attributed to acquisitions, and the rest to organic growth. Lastly, Xebec does not expect revenues to be recorded for our Renewable Gas Infrastructure segment in 2020.
Xebec to Host Live Investor Webinar to Discuss Q3 2019 Results
An investor webinar for shareholders, analysts, investors, media representatives, and other stakeholders will be held today, November 12, 2019 at 11:00AM EDT (8:00AM PDT).
The webinar can be accessed at: https://app.livestorm.co/xebec-adsorption-inc/2019-q3-investor-webinar
A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at www.xebecinc.com.
2019 Third Quarter Financial Statements and Management’s Discussion and Analysis
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the nine-month period ended September 30, 2019, are available on the company’s website at www.xebecinc.com or on the SEDAR website at www.sedar.com
Related links:
https://www.xebecinc.com
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext. 5762 bchow@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
+1 450.979.8701 ksorschak@xebecinc.com
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 and on the OTCQX Exchange under the symbol XEBEF. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
New 52 week high yesterday! $2.28
A bit of a retrace and consolidation before it takes off again! So much good stuff coming out of this company and space.
Gotta love it.
GLTA & JMO
Nobody. Trust me..
And another new high.
She's picking up steam..
GLTA & JMO
What a week last week was. Record High and Record Volume.
Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee. I love coming back from vacation to see my investments soaring.
LOL
GLTA & JMO
Probably fending off lawsuits.
GLTA & JMO
Larry was at least keeping it local and fleecing the loyalists.
These new guys are just running a perpetual P&D while gifting themselves millions of non-dilutive shares.
I mean really.
GLTA & JMO
So much BS.
Shovelling like theres no tomorrow.
GLTA & JMO
Another Red Herring.
Yawn.
BK closer than before.
GLTA & JMO
I think this is headed to trip zeroes again and soon after will file for BK.
Unless they pull the trifecta of Reverse Splits.. which would really be the third rinse in less than 5 years.
Yikes.
I cant even make this stuff up.
GLTA & JMO
What?
LOL
No hope. This is a disaster waiting for BK.
GLTA & JMO
New 52 week high yesterday. Settling down a bit ahead of the next leg up.
Gotta love it.
GLTA & JMO
Looks like its ready to dive again actually.
No support and infinite dilution will crater the bid again.
Trip zeros after 2 R/S is about as bad as it gets.
GLTA & JMO
Yes.
LOL.
GLTA & JMO
Oh man. Trading halts on Fridays are usually not a great omen.
I hope I am wrong.
GLTA & JMO
Thas the ticking of a time bomb. And its counting down towards Oblivion for shareholders. Yikes.
GLTA & JMO
Xebec Announces Over $11.7 Million in New Orders
MONTREAL, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTCQX: XEBEF) (“Xebec”), a global provider of clean energy solutions announced it closed several contracts the past month totaling approximately CDN$11.7 million.
The orders span the breadth of Xebec capabilities – from renewable natural gas (RNG) generation through several hydrogen purification projects including a fuel cell fueling application, syngas purification from waste gasification, and CO2 capture and use.
In Canada, Xebec has been awarded a contract to supply and install a flange to flange biogas upgrading plant. The project, led by Oakville-based BerQ RNG, involves installing and operating refining equipment to create renewable gas from food waste in Ontario. Approximately 111,000 tons of carbon emissions will be reduced over the project’s 15-year life.
These combined orders will increase the backlog from $63.5 million (last reported Aug 12th, 2019) to $72.2 million as of Sept 6th, 2019.
Quotes:
“Given the severe climate change issues we now face, the need to quickly transition to renewable energy and renewable fuel sources takes on more urgency. Globally the focus is not on IF but HOW. Consequently, in addition to Solar, Wind and RNG, there is tremendous movement forward in the areas of Renewable Hydrogen for Transportation (Fuel Cell Vehicles), Power to Gas for pipeline injection, Carbon Dioxide Capture and Sequestration, and creating fuels or chemicals from Waste Gasification. We at Xebec are excited to be involved in all these markets with ongoing projects. The future is full of possibilities.”
- Prabhu Rao, Chief Operating Officer, Xebec Adsorption Inc.
Related Links:
www.xebecinc.com
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext 5762 bchow@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
+1 450.979.8701 ksorschak@xebecinc.com
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 and on the OTCQX Exchange under the symbol XEBEF. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Scam from the start here.
Larry, to Ponder, to Hayter all just working shareholders over to pay themselves.
NO TRANSPARENCY.
I'd exit with whatever value is left after 2 R/S.
GLTA & JMO
Back to trip zeros post-split.
LOL
Disaster going on 6+ years.
Yikes!
GLTA & JMO
Wow. A new 52 week low.
Looks like there was at least one person with 20/20 vision here.
Look out below.
GLTA & JMO
Xebec Announces the Commencement of Trading on the OTCQX® Best Market in the United States
Xebec Adsorption Inc. (TSXV: XBC) (OTCQX: XEBEF) (“Xebec”), a global provider of clean energy solutions is pleased to announce that the company has qualified to trade on the OTCQX® Best Market. Xebec upgraded to OTCQX from the Grey Market and will soon be DTC eligible.
Xebec begins trading today on OTCQX under the symbol “XEBEF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com. The Company’s shares will continue to trade on the Toronto Stock Exchange - Venture under the symbol “XBC”.
Xebec will shortly announce that its shares will be eligible for electronic clearing and settlement in the United States through the Depository Trust Company ("DTC"). DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. DTC services provide cost benefits for investors and brokers trading Canadian securities in the United States.
Quotes:
"We are pleased to provide TSX-V-listed Xebec Adsorption Inc. with an efficient path to access U.S. investors on our OTCQX Market. OTCQX provides global companies with a transparent, cost-effective alternative to a U.S. exchange listing. We look forward to supporting Xebec Adsorption and its shareholders."
-Jason Paltrowitz, EVP of Corporate Services at OTC Markets Group.
“We have been looking forward to the day when we see ourselves represented in the U.S. on the OTCQX Market, the highest tier of OTC markets. Both institutional and retail investors throughout North America have expressed a growing interest in our business so this opens up an opportunity by expanding on a recognized U.S. securities trading platform.”
- Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext 5762 bchow@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
+1 450.979.8701 ksorschak@xebecinc.com
About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities. Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com
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 and on the OTCQX Exchange under the symbol XEBEF. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Correction. I should have said apathy.
GLTA & JMO
There will continue to be consolidation and levity in the market as the hype around the sector turns to a focus on the numbers.
There will be some big winners and many losers. M&A will ramp up and then the entire landscape will start to become the opportunity everyone forsees.
Place your bets, and at the right time.
GLTA & JMO
Upside down preferably.
GLTA & JMO
Wow. Nice Quarter!
Best is yet to come. Top/Bottom lines are all in triple digit growth.
Lots of projects and news on deck for the rest of the year.
GLTA & JMO
Xebec Reports Record Q2, 2019 with a 140% Increase in Revenue
- EBITDA of $1.8 million, and Net Profit of $1.0 million -
MONTREAL, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions announced today its 2019 second quarter and six-month periods results, with the following highlights:
* Record revenues of $12.8 million in the second quarter of 2019 compared to $5.3 million for the same period in 2018, a 140% increase.
* Positive EBITDA at $1.8 million for the second quarter 2019 compared to $0.3 million for the same period in 2018.
* Net profit of $1.0 million or $0.02/share for the second quarter 2019, compared to a net loss of ($0.1) million or ($0.003)/share for the same period in 2018.
* Working capital increased to $8.0 million on June 30, 2019, for a current ratio of 1.8:1 compared with working capital of $5.3 million and a 1.6:1 ratio on December 31, 2018.
Financial Results
~ Revenues of $22.5 million for the six-month period ended June 30, 2019, compared to $8.5 million for the same period in 2018, a 165% increase. The increase is mainly explained by the high volume of major cleantech contracts and a company acquisition.
~ Gross profit of $7.3 million or 31% of revenues for the six-month period ended June 30, 2019, compared to $2.4 million for the same period in 2018, a 204% increase compared to the same period in 2018. The company has a higher gross margin in the cleantech segment.
~ Net profit of $1.4 million or $0.03 per share for the six-month period ended June 30, 2019, compared to a net loss of ($1.5) million or ($0.03) per share for the same period in 2018, an improvement of $2.9 million. The increase is mainly due to higher sales and margin.
~ Positive EBITDA of $2.9 million for the six-month period ended June 30, 2019, compared to ($0.6) million for the same period in 2018, an increase of $3.5 million.
~ Backlog decreased by $4.6 million, from $68.1 million on August 6, 2018, to $63.5 million on August 12, 2019.
~ Selling and administrative expenses increased by $1.8 million in the six-month period ended June 30, 2019, compared to the same quarter of 2018. This is primarily due to an organizational scale-up of employees and associated costs to support the increased level of sales, order backlog and building quote log.
~ Working capital: as of June 30, 2019, the company had $1.2 million of cash on hand, and positive working capital increased to $8.0 million compared to $5.3 million on December 31, 2018.
~ Bought Deal Public Offering: on July 4, 2019, the Company has closed an $11.6 Million Bought Deal Public Offering of Units and Listing of Warrants.
Current Market and Guidance for 2019
We continue to see positive developments in our renewable gas, hydrogen, and industrial service and products segments. In the first six months of 2019, we have made good progress with revenues and profitability. Overall gross margin generation was satisfactory; nevertheless, we continue to work on gaining some additional GM points over the next 12 to 18 months. The outlook for the Renewable Natural Gas (RNG) and hydrogen purification Clean Technology segment remains unchanged from our previous guidance. Our Industrial Service, Support and Products segment continues to grow, and our CAI acquisition is out-performing expectations. The SG&A ratio decreased by 15 % to 22 % in the six-month period ended June 30, 2019, compared to 37 % for the same six months of 2018.
Xebec has been providing guidance for 2019 with revenues of $45 million plus, net earnings in the $4 to $5 million and EBITDA in the $6 to $7 million range. We are currently on track to meet these numbers. Nonetheless, we are adjusting our EPS range to between 0.07 and 0.10 cents due to the higher outstanding share count from our July 2019 equity raise (units), some warrant conversions of the November 2018 equity raise (units), and the likely exercise of the 2017 convertible debentures in November this year.
Renewable Gas Systems - Clean Technology
We are seeing increased activity for RNG systems and we have accelerated our efforts across our operating geographies. Continued progress in Europe and North America, especially in the landfill gas space, is instrumental for our growth ambitions in 2020. We anticipate reporting progress on the landfill opportunities by year end. Our current quote log is close to $700 million, and our order backlog is over $63 million.
Service, Support and Products - Industrial
Our Industrial segment continues to perform well, despite some weakness in our gross margins. Growth will be achieved organically, combined with our acquisition strategy. The acquisition of profitable compressed air service companies is crucial in supporting our growing RNG installations. As previously stated, the product mix is an important contributor to achieving our GM target in the Industrial segment. Our first acquisition, Compressed Air International (CAI) in Ontario, has performed above expectations in the first half of 2019 and is on track to grow revenues by 20% full year. Xebec is currently working on its next two acquisitions.
Renewable Gas Generation - Infrastructure
In early May 2019, Xebec’s Board of Directors approved an expanded strategy for Xebec’s Infrastructure segment, allowing management to engage with a larger pool of potential partners to explore more opportunities. Currently, Canada has two provinces that offer renewable Gas Purchase Agreements (GPAs) with terms of up to 20 years, and prices of up to $30/GJ while California has recently announced a target of 20% RNG by 2030, offering unique investment opportunities. Xebec continues to actively work on the establishment of its RNG infrastructure business where we will build, own and operate (BOO) high-quality renewable gas assets in Canada and California, and sell renewable natural gas to obligated parties and other third-party off-takers. The Infrastructure investment opportunities for RNG facilities have created significant interest from a number of Industry participants. Xebec is currently evaluating these opportunities and potential partners. Great partnerships are paramount for success, so striking the right foundational balance is our priority for making this segment a reality. No revenues or costs have yet been recorded.
Xebec still expects to announce its first BOO project in 2019.
2019 Second Quarter Financial Statements and Management’s Discussion and Analysis
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the six-month period ended June 30, 2019, are available on the company’s website at www.xebecinc.com or the SEDAR website at www.sedar.com
Xebec to Host Live Investor Webinar to Discuss Q2 Results
An investor webinar for shareholders, analysts, investors, media representatives, and other stakeholders will be held today, August 13, 2019 at 9:00AM EDT.
The webinar can be accessed at: https://app.livestorm.co/xebec-adsorption-inc/q2-investor-webinar
A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at www.xebecinc.com.
Halo Labs Reports Q2 2019 Financial Results
TORONTO
Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) today announced its financial and operational results for the second quarter for the period ended June 30, 2019 (“Q2”). The California market continues to be a significant growth factor for Halo as revenues in Q2 totaled $9,552,012 representing a 356% increase over Q2 2018 (three-month period ended June 30, 2018: $2,093,468) and a 10% increase quarter over quarter in comparison to Q1 2019 (three-month period ended to March 31, 2019: $8,718,503).
Q2 2019 Financial and Operational Highlights
• Revenues for the six-month period ended June 30, 2019 were $18,270,515 (six-month period ended June 30, 2018: $4,262,444), a 329% increase year over year, explained by first-time contributions from Coastal Harvest LLC (“Coastal Harvest”) in California and HLO Ventures (NV), LLC (“HLO”) in Nevada, as well as an 11.8% increase in revenues at ANM Inc. (“ANM”) in Oregon;
• ANM revenues were $5,692,558 for the six-month period ended June 30, 2019 (six-month period ended June 30, 2018: $5,092,810); HLO generated revenues of $1,331,583; and Coastal Harvest $11,246,374, respectively;
• ANM achieved a gross margin of 11.8%, Coastal Harvest achieved a gross margin of 30.7%, and HLO achieved a gross margin of -1.8% in the six-month period ended June 30, 2019, respectively. The aggregate total gross margin was 20.2%;
• Coastal Harvest achieved EBITDA of $2,687,354, offsetting the operating losses at ANM of $(1,383,689) and at HLO of $(727,182), as well as the $33,378 of expenses at Ireland (the Company’s licensed expansion in Cathedral City). The total contribution to EBITDA from operations was $544,337;
• In the six-month period ended June 30, 2019, the facility in Coastal Harvest sold 742,906 grams of distillate and 320,314 grams of live resin. Distillate sold at an average price of $7.08 per gram and live resin at $11.29 per gram;
• In the six-month period ended June 30, 2019, the facility in Nevada sold 47,476 grams of distillate at an average price of $28.74 per gram;
• In the six-month period ended June 30, 2019, the use of cash for operations was $9,232,040, and for capital expenditures was $1,272,989, respectively; and,
• On April 4, 2019, the Company closed a financing whereby it issued convertible debenture units at a price of C$1,000 per unit. The Company raised gross proceeds of C$21,163,000 ($15,842,620), the net proceeds of C$18,188,293 ($13,618,485) under such offering. Cash at the end of June 30, 2019, was $7,548,321.
Management Discussions
• Revenues for the six-month period ended June 30, 2019 were $18,270,515 (six-month period ended June 30, 2018: $4,262,444), a 329% increase year over year, explained by contributions from Coastal Harvest in California and HLO in Nevada, as well as a 11.8% increase in revenues at ANM in Oregon. Net revenues represent ~ 10% increase quarter on quarter. Each month in Q2 Halo delivered improving monthly growth.
• The increase in revenues is a result of by a 262.1% increase in sales of grams of distillate, shatter, and live resin, and a 28.9% increase in overall average achieved price in comparison with the six-month period ended June 30, 2018. The price increase is predominantly due to higher prices realized in California and Nevada versus only Oregon last year. Excluding the contributions of the operations in HLO (Nevada) and Coastal Harvest (California), the increase in sales of grams of distillate and shatter was 30.1% with a 4.5% overall decline in the average achieved price across all products sold in Oregon;
• In the second quarter, sales of distillate, shatter, and live resin in the facility in Oregon increased by 31.9% to 326,428 grams, which more than offset the 6.3% average price decline to $8.08 in the same period. In the six-month period ended June 30, 2019, the facility in Oregon sold 622,565 grams of distillate and shatter, an increase of 30.1% in comparison with the six-month period ended June 30, 2018. The average achieved price of distillate and shatter sold was $8.18. Distillate sold at $14.46 per gram, a 1.9% increase in comparison with the six-month period ended June 30, 2018. Shatter sold at $4.74 per gram, a 25.3% decline in comparison with the six-month period ended June 30, 2018.
• The facility in Coastal Harvest sold 742,906 grams of distillate and 320,314 grams of live resin. Distillate sold at $7.08 and live resin sold at $11.29. The facility in Nevada sold 47,476 grams of oil at a price of $28.74;
• In Oregon in the three-month period ended June 30, 2019, grams sold of distillate for cartridges increased by 48.3% to 110,911 grams, and shatter sales increased by 25.6% to 215,517 grams for the quarter. Distillate sold for $14.78 per gram in the second quarter, a 3.1% decline year over year; shatter sold for $4.64 per gram, a 17.7% decline year over year;
• In Oregon during the same time-period, trim converted increased by 78.0% to 5,760,596 grams with a conversion yield of 7.6%. The average trim price, the Company’s most important raw material, declined by 21.2% to $66.15 per pound;
• In California in the three-month period ended June 30, 2019, the Company sold 446,623 grams of distillate at an average price of $6.62 per gram and 51,605 grams of live resin at an average price of $11.48 per gram; and
• The facility in Oregon produced 296,137 grams of oil. After only commencing in November 2018, the facility in California produced 296,283 grams of distillate and 268,709 grams of live resin this quarter.
• Issuance of Additional Common Shares
The Company intends to complete a debt settlement with one creditor (the “Debt Settlement”). Pursuant to the Debt Settlement, the Company intends to retire an aggregate of C$2,009,816 of indebtedness in exchange for the issuance of 5,911,222 common shares of the Company (the “Debt Settlement Shares”) at a price of C$0.34 per Debt Settlement Share. The indebtedness is held by arm’s length parties and will not result in the creation of a new insider or a new control person. The Debt Settlement Shares will be subject to a four-month and one day hold period, subject to approvals as may be applicable.
Common Share Compensation of Certain Employees & Independent Contractors.
Certain employees and independent contractors of the Company have agreed to accept common shares of the Company (“Compensation Shares”) in lieu of the cash compensation. The total aggregate amount of cash compensation to be satisfied is C$4,107,189, which will be satisfied through the issuance of 11,436,961 Compensation Shares at an average price of C$0.36 per Compensation Share.
In connection with the above transaction, certain “related parties,” for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), are expected to receive Compensation Shares and the issuance thereto will be considered a “related party transaction” for the purposes of MI 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 and the minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101 as the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves related parties, is not more than 25% of the Company’s market capitalization.
Conference Call
Investors can call in for Q&A with Kiran Sidhu, Chief Executive Officer, and Philip van den Berg, Chief Financial Officer, at 4:00 p.m. EST on August 14, 2019:
Participant Toll Free Dial-In Number: (866) 211-3166
Participant International Dial-In Number: (647) 689-6581
Conference ID: 8679348
It will likely happen. Earnings should be out soon and I dont imagine they will be pretty so that is a good time to buy on the dip.
:)
I really like the way the company is executing. Although none of the deals right now involved any real capex/opex so they werent that hard to do.
The interesting part is when capital will be needed to expand and or invest in the business.
GLTA & JMO
Five Prestigious Brands Tap Engagement Labs for Initial Engagements
NEW BRUNSWICK, N.J. and MONTREAL, Aug. 7, 2019
Combined TotalSocial Programs Valued at CAD $324,250
NEW BRUNSWICK, N.J. and MONTREAL, Aug. 7, 2019 /CNW/ -- Engagement Labs Inc. (TSXV: EL) (the "Company") announced today that it has secured five initial engagements with leading brands in four industry verticals. The combined sales value of the contracts is CAD $324,250.
The verticals involved include banking, beverages, retail, and streaming television. All five engagements are based on the Company's TotalSocial® platform that measures online and offline consumer conversations.
"TotalSocial is a multi-year, monthly subscription service. In the case of these highly prestigious clients, we have designed initial engagements to convert to ongoing programs following successful completion," said Steven Brown, President and Chief Revenue Officer of Engagement Labs.
A key component of these engagements is applying predictive analytics to connect consumer, to measure the relationship between consumer conversations and purchases, and to identify marketing strategies to drive growth. Earlier this year, the MIT Sloan Management Review published the result to a major analytic project by Engagement Labs and a leading academic at Northeastern University that showed consumer conversations account for 19% of consumer purchases, on average. TotalSocial provides clients with opportunities to capitalize on this insight to increase sales.
About Engagement Labs
Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.
To learn more visit www.engagementlabs.com
Yes.
There will be heaps of M&A in the MJ / CBD sector.
Best is yet to come. Just a matter of time and price.
GLTA & JMO
Engagement Labs Engages New York-based Investment Bank to Consider the Company's Strategic Alternatives
NEW BRUNSWICK, N.J. and MONTREAL, Aug. 2, 2019 /CNW/ -- Engagement Labs Inc. (TSXV: EL), announced today that the Company had received unsolicited expressions of interest with respect to the possible strategic investment in or acquisition of the Company, and in light of this has engaged a New York-based investment bank to work with the Board of Directors to consider its strategic alternatives which may include taking on a strategic investor, the sale of the Company and/or some or all of its assets. There is no assurance that any material decisions will be made as a consequence of this process.
About Engagement Labs
Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.
To learn more visit www.engagementlabs.com
For inquiries please contact:
Ed Keller, CEO
Engagement Labs
ed.keller@engagementlabs.com
Robert McWhirter discusses Xebec on BNN Market Call:
https://www.bnnbloomberg.ca/video/robert-mcwhirter-discusses-xebec~1743403
His biggest holding now!
GLTA & JMO
Ya. May need to see where the bottom is before loading up again.
I'd say .25 / .35 would be a good entry point based on the trajectory.
GLTA & JMO
She's warming up for a prolonged run. :)
House codes on the BID are the big finstitutions.
GLTA & JMO
Engagement Labs Secures Contracts with One of the Largest U.S. Media Companies; CEO and President provide Q&A
NEW BRUNSWICK, N.J. and MONTREAL, July 31, 2019 /CNW/ -- Engagement Labs Inc. (TSXV: EL) (the "Company") announced today that it has successfully secured two contracts valued at CAD $187,149 with one of the largest US-based multinational media and entertainment conglomerates. The contracts are valued at CAD $187,149, and the engagements are for the remainder of the 2019 year across multiple networks.
The Company extends its recent growth and momentum in the broader entertainment industry with its recently announced addition of its first video game company. The Company's entertainment client base and domain expertise includes a diverse group of companies including gaming, over-the-top (OTT) companies, global news and entertainment media brands and television channels.
"Media is a highly conversational category. With ever more choices about what to watch, when to watch it, and on what device, consumers generally seek out advice and recommendations from others. With the rise of cord cutters, in order to be successful in this environment it is critically important to know which entertainment programs break through the clutter and become part of the cultural conversation, as well as what drives people to talk and how best to spark conversations," said Ed Keller, CEO of Engagement Labs. "Brands are discovering the power of consumer conversation to amplify their paid advertising, which is also the logic behind our recently announced partnership with MRI-Simmons."
Keller concluded, "We are pleased to be continuing our partnership with this industry leader to provide powerful data on social influence to drive their business forward and look forward to continuing our work together in the years to come."
To learn more how to improve your marketing ROI and increase sales through social intelligence, reach out at: totalsocial@engagementlabs.com.
CEO and President provide Q&A in Response to Increasing Interest from The International Investment Community
What is Engagement Labs?
Engagement Labs is an industry-leading data and analytics firm that delivers TotalSocial®, a unique social analytics platform that helps Fortune 500 companies strengthen their brands, accelerate sales, and improve marketing ROI by leveraging the power of consumer conversations and social engagement.
Among the hundreds of social analytic offerings in the market, TotalSocial is the only one that captures and analyzes what consumers are saying about brands every day, in both their online and offline conversations. The platform also features predictive analytics based on this proprietary data that forecast sales growth, media effectiveness, brand health, and other marketing outcomes.
What's the business model?
Engagement Labs is a Platform as a Service business model where most customers commit to a multi-year contracts. Since the TotalSocial platform was launched in 2016 the company has signed contracts of over $12M and has experienced a customer renewal rate in excess of 80%.
What is Engagement Labs customer footprint?
Engagement Labs' sweet spot is Fortune 500 companies. We have been very successful in securing several contracts with large, multi-national organizations. The part that has particularly excited us about our success is the wide-ranging industries in which the TotalSocial platform resonates, our customers span across Telecom, Sports/Media, Financial, Retail, Tech and consumer goods sectors such as Beverages and Beauty.
How does Engagement Labs differentiate itself from other marketing data and analytics pace-sharing marketplaces?
There are a few things that make us unique.
The TotalSocial platform is the first and only product in the market that combines offline and online data. The platform is a patent-pending technology and database architecture which has artificial intelligence/machine learning for powerful, fast predictive models and diagnostics to guide client decision making. Also, it is the only product in the market with predictive analytics that are used forecast future sales.
Can you please explain what you mean by offline word of mouth data and how that adds value?
The company has the first and only product in the market with 10-year database of proprietary brand, industry and competitive intelligence which holds social data for over 1000 Brands across multiple industries. This complements online data for the same brands. Using this data, we are able to provide our customers with analytics they can use to predict future performance.
The vital importance of the two in tandem is that analytics demonstrate that online data can predict about 9% of a brand's sales, while offline can predict an additional 10%. Further, there is no correlation between the two, so only when a marketer has both offline plus online data can they get a full and complete view. Social media without offline creates a very real chance that the wrong decisions will be made.
Has the platform been recognized in the marketplace?
Engagement Labs has been highly cited and validated by well-known industry experts and publications highlighting the Company's technology including Harvard Business Review, New York Times, USA Today and the Wall Street Journal. Also, we received recognition and citation of Engagement Labs' analysis as evidence in Hillary Clinton's book, "What Happened." Engagement Labs was also the winner of the 2017 Best Paper Award from the Advertising Research Foundation and the winner of 2017 Wommy Award.
What was your role Ed before Engagement Labs?
I was CEO and founder of a company called Keller Fay Group that focused on offline word of mouth measurement. And prior to that I was CEO of Roper ASW, one of the world's largest and most prestigious market research firms.
What was your role Steve before Engagement Labs?
I have been in the digital industry for more than 25 years and spent the last 10 working with SaaS and PaaS based companies. I was most recently the Chief Revenue Officer of Viewlift and SVP of Neulion. They are both leading PaaS companies.
What attracted you to join Engagement Labs?
[Ed]: What attracted me to Engagement Labs was the opportunity to take Keller Fay's offline data and integrate it with social media data and deliver it via a technology platform. The TotalSocial platform we created together is the vision I had when we joined Engagement Labs.
[Steve]: I began to see Fortune 500 companies begin to use social to solve problems and grow revenue. Most companies are focused on social listening which is interesting but does not accomplish these goals. When Ed walked me through the TotalSocial Platform, I knew we had something that Fortune 500s needed.
What's the opportunity for Engagement Labs?
The total addressable market (TAM) is very large. Our focus during these initial two years has been to secure contracts with leading brands across a range of verticals. With those industry-leaders in hand, we are now actively pursuing other brands in each vertical and believe as a result our growth can be exponential.
Are there any significant partnerships the Engagement Labs can leverage for growth?
Engagement Labs has a significant opportunity with a partnership that we have with Kantar under the WPP umbrella who are the world's second largest market research and data company. The partnership includes a two-year licensing agreement for the exclusive rights to sell Engagement Labs' TotalSocial platform in the United Kingdom and the creation of unique Kantar/TotalSocial products to take to market in the US. After a thorough assessment of the industry, Kantar found TotalSocial to be the most innovative and highly differentiated platform in the marketplace.
In addition, we recently announced a partnership with MRI-Simmons, the leading provider of insights on the American consumer and their media behavior. Launched as a joint venture in 2019, MRI-Simmons is co-owned by GfK and Symphony AI Group, with GfK as the majority partner. This deal is part of the overall growth strategy of Engagement Labs to accelerate its client base and revenue.
What's the most surprising use of Engagement Labs technology thus far?
One of our customers in Telecom has aggressive growth targets with ambition to become the #1 brand in its competitive set and sees advocacy as key. They needed to identify new marketing channels and target consumer segments to grow the brand. TotalSocial helped our customer in the following ways:
1) Provided them with Consumer Insights to help them understand the drivers of new customer acquisition and growth levels for existing customers
2) Helped them identify new target market demographics, including age, socio-economic and cultural factors
3) Provided a recommendation to create a lower price-point product which the company launched
4) Provided a recommended messaging and media platform to launch new product which the company adopted
What are your priorities for 2019?
2019 priorities are sales and revenue growth through direct selling, expansion of partnership opportunities to accelerate that growth further, and building out activation partnerships that power our clients to reach the right consumers based on the data and analytics that TotalSocial provides.
Interview with:
Ed Keller, CEO Engagement Labs
Steven Brown, President Engagement Labs
About Engagement Labs
Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.
To learn more visit www.engagementlabs.com
For media inquiries please contact:
Vanessa Lontoc / Ed Keller, CEO
Engagement Labs
vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com
Nice. Another big contract.
:)
GLTA & JMO
Xebec to Announce Q2 Results on August 13 and Host Investor Webinar
MONTREAL, July 30, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions, will announce its Q2, 2019 financial results on Tuesday, August 13th, 2019, before the market opens at 8:00AM EDT.
Xebec invites shareholders, analysts, investors, media representatives, and other stakeholders to our webinar where management will discuss Q2 results, followed by a Question and Answer (“Q&A”) period.
Kurt Sorschak, President and CEO will host the webinar alongside our CFO, Louis Dufour, on Tuesday, August 13th, 2019 at 9:00AM EDT.
Investor Webinar Details
Date: Tuesday, August 13th, 2019
Time: 9:00AM EDT
Access Investor Webinar
Click or paste the link below in your web browser for registration and follow the online instructions.
Registration URL: https://app.livestorm.co/xebec-adsorption-inc/q2-investor-webinar
After registering, you will receive a confirmation email with information about joining the webinar.
Questions can be asked by typing in the question in the webinar’s console at any time during the presentation and will be answered during the Q&A period.
Access Webinar by Dial-In
If you want to access the webinar by phone, you will first need to complete registration at the URL mentioned above. You’ll then need to access the webinar on the day of to receive a personalized dial-in number and code.
Note that those dialing-in will be in “listen only” mode and unable to participate in our Q&A.
Please visit the following page for further instructions on how to dial-in: https://support.livestorm.co/article/110-dial-in/
A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at www.xebecinc.com.
Related links:
https://www.xebecinc.com
https://support.livestorm.co/article/110-dial-in
For more information:
Xebec Adsorption Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Welcome!
I’m holding from the PP.
GLTA & JMO
Xebec to Present at the Canaccord Genuity 39th Annual Growth Conference on August 7th in Boston
MONTREAL, July 29, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions, today announced that Dr. Prabhu Rao, Chief Operating Officer, will present at the Canaccord Genuity 39th Annual Growth Conference to be held at the InterContinental Hotel in Boston, MA.
Management is scheduled to present at 5:00 P.M, Eastern Time on Wednesday, August 7, 2019, and will be available to meet one-on-one with investors throughout the day and on Thursday.
Portfolio managers and analysts who wish to request a meeting with management should contact their Canaccord Genuity representative.
Dr. Rao’s participation will not be webcast. However, the latest investor presentation is available in the investor’s section of the Company’s website at www.xebecinc.com.
Related links:
https://www.xebecinc.com
For more information:
Xebec Adsorption, Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
This week should be good!
Friday was a nice ramp and reminder if how quickly this can move under the right momentum.
GLTA & JMO