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TSX Symbol "BRY"
EDMONTON, April 24, 2020 /CNW/ - Bri-Chem Corp.
("Bri-Chem" or "Company") (TSX: BRY), a leading North
American oilfield chemical distribution and blending company, is
providing an update on actions taken in response to the COVID-19
pandemic ("COVID-19"), and current industry conditions. Bri-Chem is
responding to the rapidly deteriorating business conditions brought
about by the combined impact of COVID-19 and the oil price war
among certain OPEC members and Russia. Due to the compounding impacts of the
COVID‐19 pandemic and the substantial drop in oil and gas prices
worldwide, we are expecting a material reduction of revenue until
industry activities improve and customer spending and demand for
our services recommences. During this unprecedented time, we will
be working with our customers, creditors, suppliers and lenders to
manage our financial resources.
Accordingly, Bri-Chem has taken several measures to address the
challenges presented, including:
- Cancelation of $1.5M in open
purchase orders;
- 20% reduction to Executive and Board of Directors' cash
compensation;
- Bri-Chem has initiated 4-day work week schedules for certain
divisions with a corresponding 20% wage roll back for salaried
employees;
- Reduced warehouse hours of operations across Canada and US and no overtime permitted;
- Elimination of all discretionary spending and travel for all
company employees;
- Deferred the payment of rent on 8 warehouses for the months of
April and May.
The sharp decline in business activity and the resulting
reduction in revenue has been particularly hard on our people and
we are taking advantage of every possible measure to retain the
significant operational experience in our company while recognizing
the realities of the significant decline in demand for our products
and services. The Federal Governments of Canada and of the
United States have announced wage subsidy programs recently,
and we will utilize these, to the extent that we qualify, to reduce
the impact of this downturn on our staffing levels going
forward.
The business environment continues to remain fluid as a result
of these major disruptions. Bri-Chem will continue to monitor both
the expected impact and duration of these factors on our business
and will continue to adjust our business
accordingly.
About Bri-Chem
Bri-Chem has established itself, through a combination of
strategic acquisitions and organic growth, as the North American
industry leader for wholesale distribution and blending of oilfield
drilling, completion, stimulation and production chemical fluids.
We sell, blend, package and distribute a full range of drilling
fluid products from 26 strategically located warehouses throughout
Canada and the United States. Additional information
about Bri-Chem is available at www.sedar.com or at Bri-Chem's
website at www.brichem.com.
To receive Bri-Chem news updates send your email to
ir@brichem.com.
Neither the TSX nor its Regulation Services
Provider (as that term is defined in the policies of the TSX)
accepts responsibility for the adequacy or accuracy of this
release.
Forward Looking Statements
Certain statements contained in this press release constitute
forward-looking information or forward-looking statements
(collectively, "forward-looking statements"). These statements
relate to future events or future performance. The use of any of
the words "could", "intend", "expect", "believe", "will",
"projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking statements and are based on the Company's
current belief or assumptions as to the outcome and timing of such
future events. Actual future results may differ materially.
In particular, this press release contains forward-looking
statements relating to the completion of the Filings. Although the
Company believes that the expectations and assumptions on which
such forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward looking statements
because the Company can give no assurance that they will prove to
be correct. By their nature, such forward-looking statements are
subject to various risks and uncertainties, which could cause
actual results to differ materially from the anticipated results or
expectations expressed herein. These risks and uncertainties,
include, but are not limited to general economic conditions,
industry conditions, access to capital markets, volatility of
commodity prices, market forces, competition from other industry
participants and regulatory conditions. Readers are cautioned
not to place undue reliance on this forward-looking information,
which is given as of the date it is expressed in this press release
or otherwise. Except as required by applicable law, the Company
does not undertake any obligation to publicly update or to revise
any of the forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking
statements contained in this document are expressly qualified by
this cautionary statement.
SOURCE Bri-Chem Corp.