Market Newsdesk

• Partnership to allow consumers to complete transactions by voice with a variety of popular brands
  
• Companies plan to further enhance the in-vehicle experience by integrating Cerence Drive with the Xevo Glass infotainment platform

BURLINGTON, Mass., and BELLEVUE, Wash., Jan. 14, 2021 (GLOBE NEWSWIRE) — Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, and Xevo, a part of Lear Corporation (NYSE: LEA) and a global leader in connected car software, today announced that they have formed a strategic collaboration to deliver Cerence Pay conversational AI-powered contactless payment capabilities into vehicles via the Xevo Market commerce and services platform. Xevo Market, already live in millions of connected vehicles on the road today, enables ordering, completing transactions, and taking advantage of services with popular brands via the in-vehicle touchscreen – and now via voice with Cerence Pay – while on the go.

Leveraging Xevo Market and Cerence Pay’s powerful voice technology will enhance and expand the companies’ already impressive in-vehicle offerings by making it even simpler for consumers to make purchases and complete contactless payment transactions from the car. Drivers will not only have the ability to find nearby locations and order from popular brands in a variety of categories such as food, fuel, parking, and more, but also pay securely through their vehicle using their voice. The partnership will also help drive new revenue opportunities for OEMs.

“As we support our OEM customers in meeting increasing driver desire for intuitive, technology-forward experiences in the car, we are proud to partner with Xevo to offer a unified in-car payment and marketplace solution,” said Sanjay Dhawan, CEO, Cerence. “Together, Cerence Pay and Xevo Market deliver an all-in-one, integrated solution that supports drivers through the entire purchase process, enhancing their safety and productivity on the road and delivering new contactless payment solutions.”

“Xevo is always working to help automakers deliver the most advanced connected-car experience possible, and partnering with Cerence helps deliver on that goal,” said John Absmeier, CTO of Lear Corporation, parent company of Xevo. “Cerence Pay is an exciting advancement in on-the-go transactions and is a powerful enhancement to the Xevo in-vehicle commerce platform, particularly with the current emphasis on contactless interactions.”

In the future, Cerence and Xevo will look beyond in-car commerce to further integrate their offerings with the goal of delivering a safer, more productive, and satisfying in-car experience that will enable automakers to maintain their brand identity, customer relationships and control of vehicle-generated data. By integrating Cerence Drive’s conversational AI capabilities with Xevo Glass, the evolution of Xevo’s Journeyware, a full-featured infotainment platform, the companies will provide automakers with a complete, all-in-one solution that is fully customizable to meet the needs of their individual brands and drivers.

To learn more about Cerence, visit www.cerence.com, and follow the company on LinkedIn and Twitter. For more information about Xevo, visit www.xevo.com.

About Cerence Inc.

Cerence (NASDAQ: CRNC) is the global industry leader in creating unique, moving experiences for the automotive world. As an innovation partner to the world’s leading automakers, it is helping transform how a car feels, responds and learns. Its track record is built on more than 20 years of knowledge and more than 350 million cars shipped with Cerence technology. Whether it’s connected cars, autonomous driving or e-vehicles, Cerence is mapping the road ahead. For more information, visit www.cerence.com.

About Xevo

 Xevo, a division of Lear Corporation, is a Seattle-based global leader in connected-car software and a development partner to some of the world’s largest automakers. The company’s award-winning automotive software solutions make it possible for automobile manufacturers to deliver groundbreaking in-vehicle experiences while allowing automotive OEMs, merchant partners, and service providers to capitalize on new monetization opportunities. From in-vehicle commerce and media applications to mobile apps and enterprise services, Xevo leads in automotive software deployments worldwide, with its software solutions active in more than 40 million vehicles on the road today. For more information, visit xevo.com.

Contact Information

Kate Hickman
Cerence Inc.
Tel.: 339-215-4583
Email: [email protected]

Lindsey Jesch
Xevo
Tel.: 714-306-6006
Email: [email protected]

Simon Pimstone to Assume New Role as Executive Chair and Ian Mortimer to be Named Chief Executive Officer at Annual Meeting of Shareholders in June 2021

Topline Data from XEN1101 Phase 2b X-TOLE Clinical Trial in Adult Focal Epilepsy on Track


for Third Quarter of 2021

Phase 3 XEN496 “EPIK” Clinical Trial Initiated in Patients with KCNQ2-DEE,


a Rare Orphan Pediatric Disease

BURNABY, British Columbia, Jan. 14, 2021 (GLOBE NEWSWIRE) — Xenon Pharmaceuticals Inc. (Nasdaq:XENE), a neurology-focused biopharmaceutical company, today outlined its key milestone opportunities and plans for a leadership transition in 2021, with all changes anticipated to take effect in June 2021 at the time of the Company’s annual meeting of shareholders. As part of the leadership transition, Dr. Simon Pimstone, Xenon’s co-founder and Chief Executive Officer, will step down from his current role as Chief Executive Officer and assume the new role of Executive Chair of the Board of Directors, replacing Mr. Michael Tarnow, current Chair of the Board, who will not be standing for re-election at the 2021 annual meeting of shareholders. Mr. Ian Mortimer, who currently serves as President and Chief Financial Officer, will be appointed as President and Chief Executive Officer and will also be nominated for election as a director at the 2021 annual meeting of shareholders. Concurrent with these appointments, Ms. Sherry Aulin, Xenon’s current Vice President, Finance, will be appointed Chief Financial Officer, and Ms. Dawn Svoronos will be appointed Lead Independent Director of the Board.

Dr. Simon Pimstone, Xenon’s Chief Executive Officer, stated, “As co-founder of Xenon, I am proud of Xenon’s immense progress over the years, resulting in one of the most robust and novel neurology-focused therapeutic pipelines in our industry. I have forged a strong partnership with Ian, who has been integral to Xenon’s growth and a key strategic partner in building our company and pipeline, as well as our strong balance sheet. Xenon is in excellent shape and, as a founder and long-time CEO, this is a natural leadership transition that will allow me to focus on a strategic role while continuing to work closely with Ian and the rest of the leadership team as we execute on Xenon’s plans for the continued advancement of our pipeline programs. In addition, I want to extend my deep gratitude to Michael Tarnow for his more than 20 years of service as a member of Xenon’s Board since the company’s inception. We have all benefitted immensely from Michael’s guidance, leadership and mentorship as Board Chair.”

Mr. Ian Mortimer, Xenon’s President and Chief Financial Officer said, “It is Simon’s vision and drive that has helped position Xenon today as a premier neuroscience company focused on developing and delivering innovative medicines to improve the health of patients with epilepsy and other neurological disorders. We have attracted top talent across our business while building a strong leadership team, and I am excited to take on this new role as we work together to advance our therapeutic programs into later-stage development.”

Dr. Pimstone and Mr. Mortimer jointly stated, “Looking ahead to 2021, we anticipate a number of key milestone events. Importantly, we expect a topline read-out in the third quarter from our XEN1101 Phase 2b X-TOLE study. Given its unique mechanism of action and other key pharmaceutical attributes, we believe XEN1101 has the opportunity to be an important new therapeutic choice in the adult focal epilepsy space. In addition, we have now initiated our Phase 3 EPIK clinical trial studying XEN496 in pediatric patients with KCNQ2-DEE and continue to work with the KCNQ2 community to develop a therapeutic that could address this rare, pediatric disorder. By mid-year, we expect additional data from a physician-led study examining the use of XEN007 to treat childhood absence epilepsy. We also anticipate a number of important milestone events from our partnered programs, including the initiation of a Phase 2 clinical trial with NBI-921352, related to our collaboration with Neurocrine Biosciences focused on developing treatments for epilepsy. Coming out of our partnered program with Flexion Therapeutics, we expect clinical development to start in 2021, examining the use of FX301 for the treatment of post-operative pain.”

Highlights and Anticipated Milestones

Proprietary Programs

• XEN1101 is a differentiated Kv7 potassium channel modulator being developed for the treatment of epilepsy and potentially other neurological disorders. Designed as a randomized, double-blind, placebo-controlled, multicenter study, Xenon’s “X-TOLE” study is an ongoing Phase 2b clinical trial to evaluate the clinical efficacy, safety, and tolerability of XEN1101 administered as adjunctive treatment in approximately 300 adult patients with focal epilepsy. The primary endpoint is the median percent change in monthly focal seizure frequency from baseline compared to treatment period of active versus placebo. Xenon anticipates that patient randomization will be completed in the first half of 2021, with topline data anticipated in the third quarter of 2021, dependent upon ongoing patient enrollment rates. In addition, Xenon expects to support the initiation of a Phase 2 proof-of-concept clinical trial examining XEN1101 in a non-epilepsy indication within the first half of 2021.
• XEN496, a Kv7 potassium channel modulator, is a proprietary pediatric formulation of the active ingredient ezogabine being developed for the treatment of KCNQ2 developmental and epileptic encephalopathy (KCNQ2-DEE). Xenon has received Fast Track designation and Orphan Drug Designation for XEN496 for the treatment of seizures associated with KCNQ2-DEE from the U.S. Food and Drug Administration (FDA), as well as an orphan medicinal product designation in Europe. Xenon has initiated a Phase 3 randomized, double-blind, placebo-controlled, parallel group, multicenter clinical trial, called the “EPIK” study, evaluating the efficacy, safety, and tolerability of XEN496 administered as adjunctive treatment in approximately 40 pediatric patients aged one month to less than 6 years with KCNQ2-DEE.
• XEN007 (active ingredient flunarizine) is a CNS-acting Cav2.1 and T-type calcium channel modulator that is being studied in treatment-resistant childhood absence epilepsy (CAE) and potentially other neurological disorders. A physician-led, Phase 2 proof-of-concept study is ongoing to examine the potential clinical efficacy, safety, and tolerability of XEN007 as an adjunctive treatment in pediatric patients diagnosed with treatment-resistant CAE. A presentation of promising interim data collected from a small number of patients was presented at the virtual annual meeting of the American Epilepsy Society in December 2020. Xenon continues to work with its collaborators and expects that topline results from a larger data set will be available by the middle of 2021. Depending on the final results, CAE may represent a potential orphan indication for future development of XEN007.

Partnered Programs

• Xenon has an ongoing collaboration with Neurocrine Biosciences to develop treatments for epilepsy. Neurocrine Biosciences has an exclusive license to XEN901, now known as NBI-921352, a clinical stage selective Nav1.6 sodium channel inhibitor with potential in SCN8A developmental and epileptic encephalopathy (SCN8A-DEE) and other forms of epilepsy. The FDA has provided feedback on an Investigational New Drug (IND) application submitted by Neurocrine Biosciences in support of a Phase 2 clinical trial in SCN8A-DEE patients. Based on this feedback, Neurocrine Biosciences anticipates initiating a Phase 2 clinical trial in adolescent patients (aged 12 years and older) with SCN8A-DEE in the third quarter of 2021, and the trial protocol will be amended to include younger pediatric patients (aged 2-11 years) with SCN8A-DEE as soon as the FDA has reviewed and approved additional non-clinical information. In parallel, Neurocrine Biosciences is advancing clinical plans to develop NBI-921352 for the treatment of adult focal epilepsy and expects to initiate a Phase 2 clinical trial in 2021. Upon IND or equivalent regulatory acceptance for NBI-921352 in adult focal epilepsy, Xenon is eligible to receive a $10.0 million milestone payment; upon FDA acceptance of a protocol amendment for NBI-921352 in pediatric patients (aged 2-11 years) with SCN8A-DEE, Xenon is eligible to receive a $25.0 million milestone payment, or a $15.0 million milestone payment if the IND acceptance for adult focal epilepsy occurs first. Both milestone payments are in the form of 45% cash and a 55% equity investment in Xenon at a 15% premium to Xenon’s 30-day trailing volume weighted average price at that time.
• Flexion Therapeutics, Inc. acquired the global rights to develop and commercialize XEN402, a Nav1.7 inhibitor also known as funapide. Flexion’s pre-clinical FX301 consists of XEN402 formulated for extended release from a thermosensitive hydrogel. The initial development of FX301 is intended to support administration as a peripheral nerve block for control of post-operative pain. Flexion anticipates filing an IND application in the first half of 2021 to support a proof-of-concept clinical trial of popliteal fossa block with FX301 in patients undergoing bunionectomy. Results from that trial could potentially be available in late 2021. Pursuant to the terms of the agreement, Xenon is eligible to receive up to an additional $8.0 million in milestone payments through initiation of a Phase 2 clinical trial.

Corporate Highlights

• In addition to the planned leadership transition described above, the Board appointed Mr. Patrick Machado to the Audit Committee of the Board on January 12, 2021, effective immediately.

About Xenon Pharmaceuticals Inc.

We are a clinical stage biopharmaceutical company committed to developing innovative therapeutics to improve the lives of patients with neurological disorders. We are advancing a novel product pipeline of neurology therapies to address areas of high unmet medical need, with a focus on epilepsy. For more information, please visit www.xenon-pharma.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. These forward-looking statements are not based on historical fact, and include statements regarding the timing of and impact of anticipated leadership changes; the timing of and results from clinical trials and pre-clinical development activities, including those related to XEN496, XEN1101, XEN007, and other proprietary products, and those related to NBI-921352, FX301, and other partnered product candidates; the potential efficacy, safety profile, future development plans, addressable market, regulatory success and commercial potential of XEN496, XEN1101, XEN007 and other proprietary and partnered product candidates; the anticipated timing of IND, or IND-equivalent, submissions and the initiation of future clinical trials for XEN496, XEN1101, XEN007, and other proprietary products, and those related to NBI-921352, FX301, and other partnered candidates; the efficacy of our clinical trial designs; our ability to successfully develop and achieve milestones in the XEN496, XEN1101, XEN007 and other proprietary development programs; the timing and results of our interactions with regulators; the potential to advance certain of our product candidates directly into Phase 2 or later stage clinical trials; anticipated enrollment in our clinical trials and the timing thereof; the progress and potential of our other ongoing development programs; the potential receipt of milestone payments and royalties from our collaborators; and the timing of potential publication or presentation of future clinical data. These forward-looking statements are based on current assumptions that involve risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties, many of which are beyond our control, include, but are not limited to: the impact of the COVID-19 pandemic on our business, research and clinical development plans and timelines and results of operations, including impact on our clinical trial sites, collaborators, and contractors who act for or on our behalf, may be more severe and more prolonged than currently anticipated; clinical trials may not demonstrate safety and efficacy of any of our or our collaborators’ product candidates; our assumptions regarding our planned expenditures and sufficiency of our cash to fund operations may be incorrect; our ongoing discovery and pre-clinical efforts may not yield additional product candidates; promising results from trials involving a small number of patients may not be replicated in subsequent, larger trials; any of our or our collaborators’ product candidates may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; we may not achieve additional milestones in our proprietary or partnered programs; regulatory agencies may impose additional requirements or delay the initiation of clinical trials; regulatory agencies may be delayed in reviewing, commenting on or approving any of our or our collaborators’ clinical development plans as a result of the COVID-19 pandemic, which could further delay development timelines; the impact of competition; the impact of expanded product development and clinical activities on operating expenses; impact of new or changing laws and regulations; adverse conditions in the general domestic and global economic markets; as well as the other risks identified in our filings with the Securities and Exchange Commission and the securities commissions in British Columbia, Alberta and Ontario. These forward-looking statements speak only as of the date hereof and we assume no obligation to update these forward-looking statements, and readers are cautioned not to place undue reliance on such forward-looking statements.

“Xenon” and the Xenon logo are registered trademarks or trademarks of Xenon Pharmaceuticals Inc. in various jurisdictions. All other trademarks belong to their respective owner.

Investor/Media Contact:
Jodi Regts
Xenon Pharmaceuticals Inc.
Phone: 604.484.3353
Email: [email protected] 

SAN DIEGO, Jan. 14, 2021 (GLOBE NEWSWIRE) — Beam Global, (Nasdaq: BEEM, BEEMW), the leading provider of innovative sustainable technology for electric vehicle (EV) charging, outdoor media and energy security, announced that the State of California has extended Beam Global’s contract #1-18-61-16 to supply EV ARC™ systems to State of California Departments and other governmental entities, and expanded the contract to include government entities in other U.S. states at the California negotiated price, without their having to go through a lengthy procurement or technology review process. The award extends the contract through June 23, 2022.

Use of the contract is mandatory for all State of California Departments and is available for use by local governmental agencies. The contract includes Beam’s emergency power solutions which provide a secure and reliable source of electricity for EV charging and first responders during natural disasters or other periods of utility grid interruption. The new contract also reflects the name change from Envision Solar to Beam Global.

“Now all 50 states can use the California contract to buy Beam’s rapidly deployed solar-powered EV charging systems at the same volume price we offer to the State of California,” said Beam Global CEO Desmond Wheatley. “Governments and companies nationwide are under increasing pressure to deploy EV charging infrastructure quickly to accommodate the accelerating adoption of electric vehicles. The EV ARC™ is the fastest deployed and most scalable infrastructure solution. It requires no permitting, no electrical work and no construction. It’s sustainably powered with no utility bill and no loss of charging during a blackout. We are delighted to get this expanded contract renewal especially right on the heels of our recently announced Federal GSA contract which does the same things for all Federal agencies including the military.”

President-elect Joe Biden has announced a plan that represents the most ambitious clean energy vision by any U.S. president in history with billions planned for EV charging infrastructure and $4 trillion sought for green jobs and infrastructure spending. On January 5, 2021, the Los Angeles Times reported that California Governor Gavin Newsom pledged to spend $1.5 billion in boosting the purchase of zero emission vehicles and building new charging stations across California, seeking to pair an economic incentive with progress on California’s ambitious greenhouse gas reduction goals. In September 2020, Governor Newsom pledged to fast-track California’s environmental goals in response to the climate crisis. He issued an executive order that would require all new cars and passenger trucks sold in the state to be zero emission by 2035. The contract Beam has with the State of California supports these goals, along with the goals of other states

About Beam Global

Beam Global is a CleanTech leader that produces innovative, sustainable technology for electric vehicle (EV) charging, outdoor media, and energy security, without the construction, disruption, risks and costs of grid-tied solutions. Products include the patented EV ARC™ and Solar Tree® lines with BeamTrak™ patented solar tracking, and ARC Technology™ energy storage, along with EV charging, outdoor media and disaster preparedness packages.

The company develops, patents, designs, engineers and manufactures unique and advanced renewably energized products that save customers time and money, help the environment, empower communities and keep people moving. Based in San Diego, the company produces Made in America products. Beam Global is listed on Nasdaq under the symbols BEEM and BEEMW (formerly Envision Solar, EVSI, EVSIW). For more information visit https://BeamForAll.com/, LinkedIn, YouTube and Twitter.

Forward-Looking Statements

This Beam Global Press Release may contain forward-looking statements. All statements in this Press Release other than statements of historical facts are forward-looking statements. Forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may,” or other words and similar expressions that convey the uncertainty of future events or results.

Media Contact:

The Bulleit Group
[email protected]
415-742-1894

Signs definitive agreements to acquire an operating dispensary in Palm Springs and a retail license holder in Grover Beach

Entered into a long-term lease agreement and plans to commence construction in Culver City

BOCA RATON, Fla., Jan. 14, 2021 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, announced that it has entered into a definitive agreement to acquire 100% of the equity of Organic Solutions of the Desert, LLC (“OSD”), an operating dispensary located in Palm Springs, California, and approximately 78% of the equity of a retail license holder located in Grover Beach, California with the rights to acquire the remaining equity in the future (the “California Dispensary Acquisitions”). Jushi is also moving forward in the merit-based application process as one of only three selected applicants for a storefront retail (and ancillary delivery) permit in Culver City, California. On December 17, 2020, one of the Company’s subsidiaries entered into a long-term lease agreement for a bespoke, ground-up build. The closing of the California Dispensary Acquisitions, and the Company’s opening of a storefront retail (and ancillary delivery) dispensary in Culver City, are subject to state and local regulatory approvals. The three new locations will be in addition to the Company’s BEYOND / HELLO™ Santa Barbara store, which opened in October 2020.

“We are thrilled to continue the expansion of the BEYOND / HELLO™ retail brand in California with the addition of three premier locations,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “We will continue to target and evaluate attractive, limited license market opportunities in California for potential investment and expansion. I am excited to bring our customer-first approach to new markets and look forward to serving the local residents and visitors of Palm Springs, Grover Beach, Culver City, as well as continuing to serve the Santa Barbara community.”

Palm Springs Dispensary
With more than 14 million tourists per year, Palm Springs is an attractive market and luxury travel destination. Currently operating and conveniently located at 4765 E Ramon Road, one of the busiest streets in the city, OSD has been the leading revenue generator since the inception of Palm Springs adult-use cannabis program in 2018. OSD is strategically located across from Palm Springs International Airport (over 2.5 million travelers in 2019) and has ample dedicated parking spots. Upon closing, Jushi intends to roll out its best-in-class customer-first approach, including its online reservation ordering platform, and implement express pick-up and delivery options at the dispensary to drive new customer growth.

Grover Beach Dispensary         
Grover Beach is located between Oceano and Pismo Beach, and approximately 80 miles north of the Company’s BEYOND / HELLO™ Santa Barbara location. A limited license market with a maximum of four retail licenses permitted, Grover Beach offers strong barriers to entry that align with the Company’s expansion strategy. In addition, the neighboring cities around Grover Beach currently prohibit retail cannabis dispensaries from operating, making it a prime location for delivery in addition to being supported by an annual tourist population of approximately 2.2 million. Upon completion of the build out of the new BEYOND / HELLO™ in Q3 2021, this location will be the fourth and final retail dispensary permitted in the city.

Culver City Dispensary

Located directly west of Los Angeles and south of Beverly Hills, Culver City is one of the most dynamic cities in California with a growing population and thriving job market. The new Culver City ground-up build dispensary will be at the high-traffic corner of Venice and Sepulveda Blvd. and is located near the 405 Freeway and Venice Blvd on-ramps. The location will have excellent street visibility with an attached parking lot and will have entrances on both streets for easy access. In addition to the high traffic visibility (~70,000 cars pass by per day), it is also located within a 1.5-mile radius of a residential population of over 100,000 people. Jushi expects to open the Culver City dispensary by Q2 2022.

About Jushi Holdings Inc.

We are a vertically integrated cannabis company led by an industry leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi strives to maximize shareholder value while delivering high quality products across all levels of the cannabis ecosystem. For more information, please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter, and LinkedIn.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, involve estimates, projections, plans, goals, forecasts and assumptions that may prove to be inaccurate. As a result, actual results could differ materially from those expressed by such forward-looking statements and such statements should not be relied upon. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or may contain statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “will continue,” “will occur” or “will be achieved”.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has certain expectations and has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of Jushi to successfully achieve business objectives, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation, as well as other risks and uncertainties which are more fully described in the Company’s Management, Discussion and Analysis for the nine months ended September 30, 2020, and other filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Not for distribution to United States newswire services or for dissemination in the United States.

Investor Relations Contact:

Michael Perlman
Executive Vice President of Investor Relations and Treasury
561-281-0247
[email protected]

Media Contact:

Ellen Mellody
MATTIO Communications
570-209-2947
[email protected]

BOCA RATON, Fla., Jan. 14, 2021 (GLOBE NEWSWIRE) — Q.E.P. CO., INC. (OTC: QEPC.PK) (the “Company” or “QEP”) today reported its consolidated results of operations for the first nine months and third quarter of its fiscal year ending February 28, 2021 and announces a five percent special stock dividend.

QEP reported net sales of $288.0 million for the nine months ended November 30, 2020, a decrease of $11.1 million or 3.7% from the $299.1 million reported in the same period of fiscal 2020. The Company reported net sales of $98.9 million for the quarter ended November 30, 2020, an increase of $2.2 million or 2.3% from the $96.7 million reported in the same period of fiscal 2020. The fiscal 2021 nine month decline in sales compared to the prior year reflects the adverse impact of the worldwide economic downturn caused by the COVID-19 pandemic during the first quarter of the current year. All subsequent quarters reflect increased year-over-year net sales.

Lewis Gould, Executive Chairman, commented on the Company’s results, “I am pleased that the Company was able to generate sales growth for the second consecutive quarter, which has further offset the sales decline in the first quarter that was the results of the COVID-19 related economic downturn. The sales increase during the previous two quarters was driven by retail channels in North America, despite COVID-19 related challenges in the dealer and distributor channels, and growth in the Company’s overseas operations. During the quarter, the Company continued to maintain aggressive cost control measures, which included lower personnel cost, along with reduced overhead and marketing expenses. Collectively, these actions resulted in the Company’s increased profitability during the quarter and for the first nine months of the year.”       

Mr. Gould concluded, “The Company is diligently monitoring and adjusting its response not only to the COVID-19 pandemic, but also to the challenges presented by the weakening U.S. Dollar, shifts in global sourcing patterns and political uncertainty in the U.S. and U.K.   I believe that the Company under the current leadership team is emerging from the current crisis better positioned for long-term profitability and the creation of sustainable shareholder value.”

The Company’s gross profit for the first nine months of fiscal 2021 was $81.8 million compared to $79.5 million in the corresponding fiscal 2020 period, an increase of $2.3 million or 2.8%. Gross profit for the third quarter of fiscal 2021 was $28.7 million, representing an increase of $2.2 million or 8.2%, from $26.5 million in the fiscal 2020 period. The Company’s gross margin as a percentage of net sales for the first nine months and third quarter of fiscal year 2021 was 28.4% and 29.0%, respectively, which increased from 26.6% and 27.4% in the prior fiscal year periods, respectively. The gross margin as a percentage of net sales improvement is due to favorable changes in product mix and timely actions taken by the Company to reduce manufacturing overhead during the first nine months and third quarter of fiscal 2021.

Operating expenses, excluding restructuring loss, for the first nine months and third quarter of fiscal 2021 were $71.7 million and $25.1 million, respectively, or 24.9% and 25.3% of net sales in those periods, compared to $85.1 million and $26.5 million, respectively, or 28.4% and 27.4% of net sales in the comparable fiscal 2020 periods. The reduction in operating expenses is due to year-over-year synergies realized through the integration and rationalization of fiscal 2019 acquisitions, lower personnel costs through reduction-in-force and employee furlough activities during the COVID-19 economic downturn, lower marketing and travel expenses, along with government subsidies received for maintaining employment levels at the Company’s international operations.

Restructuring charges for the first nine months and third quarter of fiscal 2021 represent the legal, administrative and asset impairment cost associated with the restructuring of the Company’s Canadian subsidiary, net of the benefit related to the Plan of Compromise agreed with the subsidiary’s unsecured creditors.

The lower interest expense during the first nine months and third quarter of fiscal 2021 compared to the same periods in the prior fiscal year was principally due to a reduction in borrowings under the Company’s credit facilities during the current period.

The provision for income taxes as a percentage of incomes before taxes was 28.0% for the first nine months and third quarter of fiscal 2021 compared to a benefit for income taxes as a percentage of the loss before taxes of 28.0% for the related fiscal 2020 periods.

Net income for the first nine months and third quarter of fiscal 2021 was $5.5 million and $2.1 million, respectively, or $1.75 and $0.66, respectively, per diluted share. For the comparable periods of fiscal 2020, net loss was $3.7 million and $0.4 million, respectively, or $1.16 and $0.13, respectively, per diluted share.

Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) as adjusted for non-operating income and restructuring charges for the first nine months and third quarter of fiscal 2021 was $13.4 million and $4.8 million, respectively as compared to a loss of $2.0 million and income of $1.2 million for the first nine months and third quarter of fiscal 2020, respectively.

		For the Three Months Ended November 30,							For the Nine Months Ended November 30,
			2020			2019				2020			2019
Net income (loss)		$	2,104		$	(398	)		$	5,535		$	(3,664	)
Add:	Interest expense, net		383			583				1,229			1,885
	Provision/(benefit) for income taxes		818			(155	)			2,153			(1,426	)
	Depreciation and amortization		1,180			1,194				3,402			3,587
	Non-operating income		–			–				–			(2,370	)
	Restructuring charges		301			–				1,110			–
EBITDA as adjusted for non-operating income and restructuring charges		$	4,786		$	1,224			$	13,429		$	(1,988	)

Cash provided by operations during the first nine months of fiscal 2021 was $30.6 million as compared to $1.8 million in the first nine months of fiscal 2020, reflecting an increase in operating income and a reduction in net investments in working capital. During the first nine months of fiscal 2020, the Company sold a certain non-core product line and recorded a gain on the sale of $2.4 million before income taxes, which was recorded in non-operating income.   In the first nine months of fiscal 2021, cash from operations was used primarily to pay down $17.8 million of debt and increase cash balances. In the prior fiscal year period, cash provided by operations and proceeds from the sale of a non-core product line was used to pay down debt.  

Working capital at the end of the Company’s third of fiscal 2021 was $41.1 million compared to $29.1 million at the end of fiscal 2020.   Aggregate debt, net of available cash balances at the end of the third quarter of fiscal 2021 was $19.1 million or 27.6% of equity, a decrease of $27.3 million compared to $46.4 million or 73.9% of equity at the end of fiscal 2020.

On June 29, 2020, the Company’s Canadian operating subsidiary, Roberts Company Canada Limited, was granted an Order by the Ontario Superior Court of Justice (Commercial List) to commence a restructuring proceeding under the Companies’ Creditor Arrangement Act (CCAA). This filing was initiated to allow the subsidiary to be able to continue operating while it efficiently restructures its business. The subsidiary has substantially completed its reorganization and is expected to fully emerge from the CCAA protection before the end of fiscal 2021. The Company is not a party to this proceeding.

On January 13, 2021, the Company’s Board of Directors declared a one-time, special stock dividend of 5% per share on the common stock of the Company. The stock dividend is distributable on or about February 19, 2021, to shareholders of record at the close of business on January 18, 2021.

Conference Call Information

The Company will be hosting the following conference call to discuss its third quarter financial results and answer questions.

Date:	Thursday, January 21, 2021
Time:	10:00 a.m. Eastern Time
Dial-in Numbers:	800-367-2403 (US or Canada)
	+1 334-777-6978 (International)
Confirmation Code:	6121544
Replay:	719-457-0820; Passcode: 6121544

About QEP

Founded in 1979, Q.E.P. Co., Inc. is a leading global provider of high quality, innovative and value-driven flooring and flooring installation solutions. QEP manufactures, markets and sells a comprehensive line of flooring installation tools, adhesives, and underlayment for both consumers as well as professional installers. Under the Harris Flooring Group ™, QEP manufactures and offers a complete line of hardwood, luxury vinyl, and modular carpet tile. QEP sells its products throughout the world to home improvement retail centers, professional specialty distribution outlets, and flooring dealers under brand names including QEP®, LASH®, Roberts®, Harris Flooring Group™, Capitol®, Harris®Wood, Kraus®, Naturally Aged Flooring™, Vitrex®, Homelux®, Brutus®, PRCI®, Plasplugs®, Tomecanic®, Premix-Marbletite® (PMM), Apple Creek® and Elastiment®.

QEP is headquartered in Boca Raton, Florida with offices in Canada, Europe, Asia, Australia and New Zealand. Please visit our website at www.qepcorporate.com.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical facts, may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipates,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding economic conditions, sales growth, price increases, profit improvements, product development and marketing, operating expenses, cost savings, acquisition integration, operational synergy realization, global sourcing, political uncertainty, cash flow, debt and currency exchange rates. Forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.

-Financial Information Follows-

Q.E.P. CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
	For the Three Months Ended								For the Nine Months Ended
	November 30,				November 30,				November 30,				November 30,
		2020				2019				2020				2019
Net sales	$	98,941			$	96,682			$	288,008			$	299,059
Cost of goods sold		70,277				70,202				206,257				219,565
Gross profit		28,664				26,480				81,751				79,494
Operating expenses:
Shipping		11,544				11,152				32,516				33,060
General and administrative		6,897				7,101				20,858				25,849
Selling and marketing		6,687				8,646				18,780				27,012
Restructuring		301				–				1,110				–
Other income, net		(70	)			(449	)			(430	)			(852	)
Total operating expenses		25,359				26,450				72,834				85,069
Operating income		3,305				30				8,917				(5,575	)
Non-operating income		–				–				–				2,370
Interest expense, net		(383	)			(583	)			(1,229	)			(1,885	)
Income (loss) before provision for income taxes		2,922				(553	)			7,688				(5,090	)
Provision (benefit) for income taxes		818				(155	)			2,153				(1,426	)
Net income (loss)	$	2,104			$	(398	)		$	5,535			$	(3,664	)
Earnings (loss) per share:
Basic	$	0.66			$	(0.13	)		$	1.75			$	(1.16	)
Diluted	$	0.66			$	(0.13	)		$	1.75			$	(1.16	)
Weighted average number of common
shares outstanding:
Basic		3,171				3,164				3,165				3,164
Diluted		3,171				3,164				3,165				3,164

Q.E.P. CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(Unaudited)
		For the Three Months Ended								For the Nine Months Ended
		November 30,			November 30,					November 30,			November 30,
		2020				2019					2020			2019
Net income (loss)		$	2,104		$	(398	)			$	5,535		$	(3,664	)
Unrealized currency translation adjustments			160			349					835			(480	)
Comprehensive income (loss)		$	2,264		$	(49	)			$	6,370		$	(4,144	)

Q.E.P. CO., INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except per share values)
	November 30, 2020				February 29, 2020
	(Unaudited)				(Audited)
ASSETS
Cash	$	17,284			$	4,999
Accounts receivable, less allowance for doubtful accounts of $1,132
and $475 as of November 30, 2020 and February 29, 2020, respectively		48,986				49,264
Inventories		61,181				69,061
Prepaid expenses and other current assets		4,195				4,280
Prepaid income taxes		–				740
Current assets		131,646				128,344
Property and equipment, net		13,748				15,168
Right of use operating lease assets		17,199				18,320
Deferred income taxes, net		4,132				4,135
Intangibles, net		12,653				13,871
Goodwill		2,384				2,288
Other assets		2,857				2,824
Total Assets	$	184,619			$	184,950
LIABILITIES AND SHAREHOLDERS’ EQUITY
Trade accounts payable	$	37,320			$	31,114
Accrued liabilities		21,935				19,366
Current operating lease liabilities		5,225				5,262
Income taxes payable		698				–
Lines of credit		22,068				40,107
Current maturities of notes payable		3,340				3,399
Current liabilities		90,586				99,248
Notes payable		10,928				7,854
Non-current operating lease liabilities		13,063				14,121
Deferred income taxes		114				114
Other long term liabilities		817				872
Total Liabilities		115,508				122,209
Preferred stock, 2,500 shares authorized, $1.00 par value; 0 shares
issued and outstanding at November 30, 2020 and February 29, 2020		–				–
Common stock, 20,000 shares authorized, $.001 par value;
3,827 shares issued, and 3,139 shares outstanding at
November 30, 2020 and February 29, 2020		4				4
Additional paid-in capital		11,087				11,087
Retained earnings		70,422				64,887
Treasury stock, 688 shares held at cost at November 30, 2020
and February 29, 2020		(8,869	)			(8,869	)
Accumulated other comprehensive income		(3,533	)			(4,368	)
Shareholders’ Equity		69,111				62,741
Total Liabilities and Shareholders’ Equity	$	184,619			$	184,950

Q.E.P. CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	For the Nine Months Ended
	November 30,
		2020				2019
Operating activities:
Net income (loss)	$	5,535			$	(3,664	)
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on sale of business		–				(2,370	)
Gain on sale of property		–				6
Restructuring		(260	)			–
Depreciation and amortization		3,402				3,587
Other non-cash adjustments		132				211
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		526				3,057
Inventories		6,999				12,287
Prepaid expenses and other assets		2,155				6,056
Trade accounts payable and accrued liabilities		12,090				(17,363	)
Net cash provided by operating activities		30,579				1,807
Investing activities:
Acquisitions		(448	)			(1,324	)
Capital expenditures		(576	)			(933	)
Proceeds from sale of business		–				4,663
Proceeds from sale of property		252				287
Purchase of equity securities		–				(1,900	)
Net cash provided by (used in) investing activities		(772	)			793
Financing activities:
Net borrowings (repayment) under lines of credit		(18,634	)			(5,714	)
Net borrowings (repayments) of notes payable		857				(216	)
Purchase of treasury stock		(90	)			(90	)
Principal payments on finance leases		(68	)			–
Net cash used in financing activities		(17,935	)			(6,020	)
Effect of exchange rate changes on cash		413				(218	)
Net decrease in cash		12,285				(3,638	)
Cash at beginning of period		4,999				6,467
Cash at end of period	$	17,284			$	2,829

Q.E.P. CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except shares data)
(Unaudited)
																						Accumulated
																						Other					Total
	Preferred Stock					Common Stock					Paid-in			Retained				Treasury				Comprehensive					Shareholders’
	Shares		Amount			Shares		Amount			Capital			Earnings				Stock				Income					Equity
Balance at February 28, 2019	–		$	–		3,820,785		$	4		$	10,963		$	77,029			$	(8,700	)		$	(3,774	)			$	75,522
Net loss															(12,142	)												(12,142	)
Other comprehensive income (loss)																							(594	)				(594	)
Issuance of common stock in connection with exercise of stock options						5,857			–			124																124
Purchase of treasury stock																			(169	)								(169	)
Balance at February 29, 2020	–		$	–		3,826,642		$	4		$	11,087		$	64,887			$	(8,869	)		$	(4,368	)			$	62,741
Net income															5,535													5,535
Other comprehensive income (loss)																							835					835
Balance at November 30, 2020	–		$	–		3,826,642		$	4		$	11,087		$	70,422			$	(8,869	)		$	(3,533	)			$	69,111

 

CONTACT:

Q.E.P. Co., Inc.

Enos Brown

Executive Vice President and

Chief Financial Officer

561-994-5550

NEW YORK, Jan. 14, 2021 (GLOBE NEWSWIRE) — Mercer International Inc. (Nasdaq: MERC) (the “Company”) today announced that it intends to offer for sale (the “Offering”) $500.0 million in aggregate principal amount of senior notes due 2029 (the “2029 Notes”).

The Company intends to use the net proceeds of the Offering to finance the previously announced offer to purchase (the “Tender Offer”) or any subsequent redemption of all $250 million in aggregate principal amount of its 6.500% Senior Notes due 2024 (the “2024 Notes”) and the partial redemption of its 7.375% Senior Notes due 2025 (the “2025 Notes”).

The Tender Offer is scheduled to expire at 5:00 p.m. Eastern Time on January 21, 2021 (the “Expiration Time”), unless extended or earlier terminated. The consideration to be paid for each $1,000 principal amount of the 2024 Notes that are validly tendered and not validly withdrawn on or prior to the Expiration Time is $1,018.35, plus accrued and unpaid interest on the 2024 Notes from the last interest payment date up to, but not including, the Settlement Date (as defined below). Assuming the Tender Offer is not extended, we expect that the Tender Offer will settle and payment will be made on January 26, 2021 (the “Settlement Date”), including with respect to 2024 Notes tendered pursuant to the guaranteed delivery procedures described in the Offer to Purchase. If less than all of the 2024 Notes are tendered in the Tender Offer, we intend to redeem any 2024 Notes that remain outstanding at a call price of $1,016.25 per $1,000 in principal amount of 2024 Notes redeemed, plus accrued and unpaid interest. Notice of such redemption was given in accordance with the terms and conditions of the indenture governing the 2024 Notes. We currently expect the redemption date for the 2024 Notes to be February 13, 2021. This press release is not a notice of redemption.

The 2029 Notes will be offered and sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The 2029 Notes have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the 2029 Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

Mercer International Inc. is a global forest products company with operations in Germany and Canada with consolidated annual production capacity of 2.2 million tonnes of pulp and 550 million board feet of lumber. To obtain further information on the company, please visit its web site at http://www.mercerint.com.

The preceding contains “forward looking statements” within the meaning of federal securities laws and is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including, without limitation, the Company’s intentions regarding the consummation of the Offering, and the intended use of proceeds and the completion of the refinancing of the 2024 Notes and the partial redemption of the 2025 Notes. “Forward looking statements” involve unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. These statements are based on the Company’s management’s estimates and assumptions with respect to future events, which include uncertainty as to its ability to consummate the Offering or the refinancing of the 2024 Notes and partial redemption of the 2025 Notes, which estimates are believed to be reasonable, though inherently uncertain and difficult to predict. A discussion of factors that could cause actual results to vary is included in the Company’s Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.

APPROVED BY:

Jimmy S.H. Lee
Executive Chairman
(604) 684-1099

David M. Gandossi, FCPA, FCA
Chief Executive Officer
(604) 684-1099