Excellium Inc.
TSX VENTURE : XLM

Excellium Inc.

November 22, 2013 13:40 ET

Excellium Inc. Announces Results of its Third Quarter of Fiscal 2013 and Update on Exploration of Strategic Alternatives

MONCTON, NEW BRUNSWICK--(Marketwired - Nov. 22, 2013) - Excellium Inc. (TSX VENTURE:XLM) (the "Corporation" or "Excellium"), a Tier II issuer listed on the TSX Venture Exchange (the "Exchange"), announces results of its third quarter of fiscal 2013 and an update on exploration of strategic alternatives.

Financial results for the nine-months quarter compared to previous year

  • Revenues decreased by 29.2% to $2,892,463
  • Gross profit reached $1,437,598, a 4.1% decrease
  • Operating loss was $1,506,166, representing a $819,800 improvement

Revenue

For the nine-months period ended September 30, 2013, Excellium had a decrease in revenues of 29.4% at $2,892,463 compared to $4,096,191 in 2012. Electronic Security increased from 89.3% of revenues in 2012 to 89.5% of revenues in 2013 while Electronic Identification decreased from 10.7% to 10.5% of Excellium's revenues.

Net Loss

The Company suffered a net loss of $1,506,166 after 9 months in 2013 compared to a net loss of $2,325,966 for the same period in 2012. In 2012, the Company has to record Listing Expenses, amount of $956.009, following the Reverse Acquisition Transaction with Azura Ventures Ltd.

UPDATE ON EXPLORATION OF STRATEGIC ALTERNATIVES

Following a strategic review initiated by the Board of Directors announced on August 29, 2013, the Company entered in a non-binding Letter of Intent with a third-party potential acquirer of the Electronic Security division of the Company. As of the date hereof, no agreement has been reached with such third party and there is no assurance that the Company will be able to complete a transaction in that regard.

In November of 2013, the Company completed a secured loan transaction with its controlling shareholder. Under the terms of the arrangement, the controlling shareholder has made available a secured loan facility of up to $600,000 to Excellium Inc. to finance its operations. Under the terms of the loan, the shareholder will lend to Excellium an aggregate amount of up to $600,000, disbursable depending on Excellium's needs. A first $200,000 tranche was drawn by Excellium at closing. The interest rate on any outstanding principal amount under the Excellium Loan is 6% per annum and Excellium shall repay the principal of each advance on the second anniversary of the disbursement thereof.

Excellium is a security company specialized in biometrics identity systems and proactive security management and in the integration of security products for the institutional and industrial markets. Excellium is active in two distinct but complementary lines of business: electronic security, which includes security management, access control and video surveillance, and electronic identification, comprising background checks and biometric identification. Excellium's common shares are listed on the Exchange under the trading symbol "XLM" and its continuous disclosure filings are available on SEDAR at www.sedar.com. For further information about Excellium, please visit its website at www.excellium.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Excellium Inc.
    Monique Imbeault, Chairman
    (514) 798-8899