MyCelx Technologies Corporation Trading Update (0687S)
04 November 2019 - 6:00PM
UK Regulatory
TIDMMYX TIDMMYXR
RNS Number : 0687S
MyCelx Technologies Corporation
04 November 2019
4 November 2019
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
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,
today announces a trading update.
Recent events in Saudi Arabia, one of the Company's primary
markets, have impacted the Company's business in H2 as adjustments
in customer maintenance schedules and production disruption has
resulted in reduced revenue expectations. However, the Company
continues to maintain its leadership position in the market for
performance and reliability and believes the current challenges in
the region are temporary and that project activity will recover in
the near term.
The Company had forecast significant revenue in H2 2019 for
Rapid Response deployment and maintenance activity. However, whilst
maintenance activity is expected to increase in the first half of
2020, the historically dependable Rapid Response contracts
typically signed in the last quarter of the calendar year are
unlikely to occur in the current environment. However, MYCELX is
actively pursuing opportunities in the region, in Nigeria and also
new commercial and industrial applications which it hopes to
announce before the end of the year.
Given the above environment, the Company is taking a prudent
view and revising its forecast for the year to December 2019 to
reflect current visibility through year end, whilst acknowledging
that there are opportunities in the pipeline that could be
announced before the end of 2019. The revised forecast is c.a.
$12.5 million in revenue, negative EBIDTA of $1.3 million, and a
net loss of $3.3 million. The unrestricted cash balance at 31
October 2019 is c.a. $3.5 million.
Commenting on the market update, Connie Mixon, CEO, said:
"Whilst we are frustrated about the current market conditions in
the Middle East, we remain upbeat about the number of opportunities
we are seeing at the moment. Although we expect there to be a short
term impact to our business, and believe that revising our guidance
for 2019 is prudent, we remain at the forefront of the industry and
continue to be well placed to capitalise on multiple live project
opportunities.
As a business, we are confident that as the macroeconomic
environment stabilises in the near term, this will allow us to
convert these advanced opportunities into new contract wins, and we
look forward to updating the market in due course."
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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