NAUGATUCK, CT / ACCESSWIRE / July 31, 2020 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving niche industrial markets, today announced the results of operations for the second quarter ended June 28, 2020.

As a result of Eastern's comprehensive program to maintain the health and safety of employees across all 21 operating locations, the Company temporarily suspended operations in three locations in the second quarter of 2020 due to concerns over the COVID-19 pandemic.

Second fiscal quarter of 2020 net sales of $48.8 million fell by 21% compared to the same period in the prior year, primarily as a result of customer shutdowns resulting from the COVID-19 pandemic. Sales to electric vehicle manufacturers and military equipment producers remained resilient. The Company also leveraged its production capabilities to manufacture emergency hospital bed frames to meet demand from field hospitals.

Earnings per fully diluted share in the second fiscal quarter of 2020 declined to a loss of $0.30. The Company incurred a $4.0 million goodwill impairment charge, related to Greenwald Industries, and a one-time restructuring charge of $280 thousand, related to the sale of the Canadian Commercial Vehicles Corporation. Adjusted for these charges, net income per share was $0.38 in the second fiscal quarter of 2020. (See below for reconciliation).

Cash flow from operations was $5.9 million in the second fiscal quarter of 2020 and the Company's balance sheet continues to strengthen with a $3.5 million increase in cash and $1.4 million in debt payments during the second fiscal quarter of 2020.

The Company accelerated its portfolio optimization in the second fiscal quarter with the sale of its subsidiary, Canadian Commercial Vehicles Corporation, and is taking further actions to streamline its businesses, improve short-term results, and position its businesses for growth in the future.

President and CEO August Vlak commented, "Sales in the second quarter of 2020 were $48.8 million, a decrease of 21% compared to the second quarter of 2019. The decline in sales compared to the same period in 2019 was partly offset by the inclusion in the 2020 period of Big 3 Precision, which we acquired in August 2019. The reduction in sales was primarily due to the mandated and voluntary closure of many of our customers' operations, primarily in April and May of 2020. Many of our customers closed their operations and stopped receiving shipments in response to concerns about employee health and safety during the COVID-19 pandemic. We estimate that we lost more than a cumulative 1,600 shipping days to approximately 80 customers in the second quarter due to these temporary closures."

"In the second quarter, sales to electric vehicle manufacturers and military equipment producers provided a bright spot, as our investments in these markets continued to deliver growth. Similarly, sales to and orders from manufacturers of consumer sporting and recreational goods markets started to rebound towards the end of the second quarter," said Mr. Vlak.

"The numerous actions that we have taken to control expenses have allowed our businesses to withstand a significant economic downturn. Among other savings, we reduced our budgeted spending on sales and administrative expenses by more than 20% in the second quarter of 2020. Actions include the suspension of all hiring of salaried positions, cessation of discretionary spending, temporary reduction in work hours, initiation of furloughs, cancellation of certain regularly scheduled merit-based salary increases, and a limitation on capital spending to critical maintenance, safety, and regulatory projects. We are sustaining these and other expense reductions and are taking further action to reduce structural costs across the Company, including further portfolio rationalization and planned facility consolidations," added Mr. Vlak.

Mr. Vlak continued, "Our balance sheet remains strong. In the second quarter of 2020, we generated $5.9 million in cash from operations and grew our cash balance by $3.5 million to $20.0 million at the end of the second quarter 2020 compared to $16.5 million at the end of the first quarter in 2020. Based on our extensive scenario planning, we believe that Eastern has a solid balance sheet with ample resources to navigate the current business environment. As of June 27, 2020, our Current Ratio is 3.8x. Our net leverage ratio is 2.9x, and our fixed charge coverage ratio is 2.3x – both of which are well within with our bank covenants of 4.25x and 1.25x, respectively. Our net leverage ratio is based on adjusted EBITDA, as defined in our credit agreement, for the twelve months ended June 27, 2020."

"In the past quarter, we accelerated our work on portfolio optimization. We divested our subsidiary, Canadian Commercial Vehicles Corporation, and, after reviewing our plans for Greenwald Industries, we concluded that we no longer believe that the carrying value of the goodwill from this acquisition in 2000 reflects the performance of the business. As a result, we posted a goodwill impairment charge of $4.0 million in the second quarter," added Mr. Vlak.

Mr. Vlak concluded, "We are navigating a rapidly evolving economic environment, but this past quarter has demonstrated the resilience of our businesses. While managing the short-term operational and demand challenges, we remain committed to our vision to build long-term shareholder value. When we acquired Big 3 Precision, we shared our pro forma annual earnings of $3.09 per fully diluted share, reported our 10Q dated November 7, 2019, which we believe remains an appropriate performance goal for the Company when the domestic economy stabilizes."

Second Quarter 2020 Segment Results

Sales in the Industrial Hardware segment fell by 10% to $33.9 million in the second fiscal quarter of 2020 from $37.5 million in the second fiscal quarter of 2019. Excluding Big 3 Precision, sales in the second fiscal quarter of 2020 decreased by 42% compared to the same period in 2019. Sales in the Security Products segment declined by 33% in the second quarter of 2020 compared to the second quarter of 2019, primarily as a result of customer closures and a decline in demand related to the COVID-19 pandemic. Sales in the Metal Products segment decreased by 48% in the second fiscal quarter of 2020 compared to the second fiscal quarter of 2019, as mining sales in the second fiscal quarter were materially impacted by mine closures related to the COVID-19 pandemic, a decline in natural gas prices and a rapid deterioration in energy markets.

Operating profits decreased in all segments in the second fiscal quarter of 2020 compared to the second quarter of 2019. Operating profits from the Industrial Hardware segment were down by 39% in the second fiscal quarter of 2020 compared to same period in 2019. Operating profit margin for the Industrial Hardware segment improved to 5.7% of sales in the second fiscal quarter of 2020 from 2.0% of sales in the second fiscal quarter of 2019, largely a result of the avoidance of significant restructuring costs and the addition of Big 3 Precision. Operating profits from the Security Products segment declined by 54% in the second fiscal quarter of 2020 compared to same period in 2019. Operating profit margin for the Security Products segment declined to negative 28.0% of sales in the second fiscal quarter 2020 from 11.5% of sales in the second fiscal quarter of 2019. The decline is primarily attributable to the goodwill impairment charge of $4.0 million, or 36% of sales. Metal Products generated an operating loss of $932 thousand in the second fiscal quarter of 2020.

Conference Call and Webcast

The Eastern Company will host a conference call to discuss its results for the second fiscal quarter of 2020 and other matters on Thursday, August 6, 2020 at 11:00 AM Eastern Time. Participants can access the conference call by phone at (888) 669-0687 (toll free in US & Canada) or (862) 298-0702 (international). Participants can also join via the web at https://www.webcaster4.com/Webcast/Page/1757/36298.

About The Eastern Company

The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to niche markets, focusing on industries that offer long-term macroeconomic growth opportunities. The Company operates across three reporting segments — Industrial Hardware, Security Products and Metal Products — from locations in the U.S., Canada, Mexico, U.K., Taiwan and China. More information on the Company can be found at www.easterncompany.com.

Safe Harbor for Forward-Looking Statements

Statements in this document about our future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the rules, regulations and releases of the Securities and Exchange Commission. Any statements that are not statements of historical fact, including statements containing the words "believes," "intends", "continues," "reflects," "plans," "anticipates," "expects," and similar expressions, should also be considered to be forward-looking statements. Readers should not place undue reliance on these forward-looking statements, which are based upon management's current beliefs and expectations. These forward-looking statements are subject to risks and uncertainties, and actual results might differ materially from those discussed in, or implied by, the forward-looking statements. Among the risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements include, but are not limited to, the impact of the ongoing COVID-19 pandemic, including the impact of shutdowns and other restrictions imposed in response to COVID-19 on our supply chain and production and consumer demand for our products, changing customer preferences, lack of success of new products, loss of customers, cybersecurity breaches, changes in competition in our markets, and increased prices for raw materials resulting from tariffs on imported goods or otherwise. There are important, additional factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including those set forth in our reports and filings with the Securities and Exchange Commission. We undertake no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

The non-GAAP financial measures we provide in this report should be viewed in addition to, and not as an alternative for, results prepared in accordance U.S. GAAP.

We provide certain results excluding Big 3 Precision because we believe these allow for better comparability to the prior period.

To supplement the consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Adjusted EPS and Adjusted EBITDA, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income (loss), diluted earnings (loss) per common share, or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.

Adjusted EPS is defined as diluted earnings (loss) per share excluding, when they occur, the impacts of impairment losses and restructuring expenses. We believe that adjusted EPS provides important comparability of underlying operational results, allowing investors and management to access operating performance on a consistent basis.

Adjusted EBITDA is defined as net income (loss) from continuing operations before interest expense, provision for (benefit from) income taxes, and depreciation and amortization; in addition to these adjustments, we exclude, when they occur, the impacts of impairment losses and restructuring expenses. Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.

Investor Relations Contacts

The Eastern Company
August Vlak or John L. Sullivan III 203-729-2255

THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
Three Months Ended
 
 
Six Months Ended
 

 
June 27, 2020
 
 
June 29, 2019
 
 
June 27, 2020
 
 
June 29, 2019
 

Net sales

 
$
48,833,409
 
 
$
61,439,929
 
 
$
114,159,025
 
 
$
122,323,077
 

Cost of products sold

 
 
(38,076,590)
 
 
 
(46,430,039
)
 
 
(88,308,972)
 
 
 
(93,504,144
)

Gross margin

 
 
10,756,819
 
 
 
15,009,890
 
 
 
25,850,053
 
 
 
28,818,933
 

Product development expense

 
 
(756,171)
 
 
 
(2,174,803
)
 
 
(1,531,615)
 
 
 
(4,414,579
)

Selling and administrative expenses

 
 
(7,960,307)
 
 
 
(8,076,501
)
 
 
(17,858,438)
 
 
 
(16,474,766
)

Goodwill impairment loss

 
 
(4,002,548)
 
 
 
–
 
 
 
(4,002,548)
 
 
 
–
 

Restructuring costs

 
 
(280,000)
 
 
 
(1,799,293
)
 
 
(280,000)
 
 
 
(2,635,987
)

Operating profit (loss)

 
 
(2,242,207)
 
 
 
2,959,293
 
 
 
2,177,452
 
 
 
5,293,601
 

Interest expense

 
 
(606,553)
 
 
 
(261,618
)
 
 
(1,434,217)
 
 
 
(554,158
)

Other income

 
 
416,917
 
 
 
586,823
 
 
 
603,322
 
 
 
600,748
 

Income (loss) before income taxes

 
 
(2,431,843)
 
 
 
3,284,498
 
 
 
1,346,556
 
 
 
5,340,191
 

Income taxes

 
 
(543,061)
 
 
 
754,725
 
 
 
339,521
 
 
 
1,239,458
 

Net income (loss)

 
$
(1,888,782)
 
 
$
2,529,773
 
 
$
1,007,036
 
 
$
4,100,733
 

Earnings (loss) per Share:

Basic

 
$
(.30)
 
 
$
.41
 
 
$
.16
 
 
$
.66
 

Diluted

 
$
(.30)
 
 
$
.40
 
 
$
.16
 
 
$
.65
 

Cash dividends per share:

 
$
.11
 
 
$
.11
 
 
$
.22
 
 
$
.22
 

THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

 
June 27, 2020
 
 
December 28, 2019
 

 
(unaudited)
 
 
 
 

Current Assets

Cash and cash equivalents

 
$
19,986,055
 
 
$
17,996,505
 

Marketable securities

 
 
25,916
 
 
 
34,305
 

Accounts receivable, less allowances: 2020 – $693,000;2019 – $556,000

 
 
33,580,263
 
 
 
37,941,900
 

Inventories

 
 
55,908,740
 
 
 
54,599,266
 

Current portion of note receivable

 
 
221,348
 
 
 
–
 

Prepaid expenses and other assets

 
 
3,668,863
 
 
 
4,343,507
 

Total Current Assets

 
 
113,391,185
 
 
 
114,915,483
 

Property, Plant and Equipment

 
 
87,020,830
 
 
 
88,336,243
 

Accumulated depreciation

 
 
(47,313,479)
 
 
 
(46,313,630
)

 
 
39,707,351
 
 
 
42,022,613
 

Goodwill

 
 
75,440,535
 
 
 
79,518,012
 

Trademarks

 
 
5,404,283
 
 
 
5,404,283
 

Patents and other intangibles net of accumulated amortization

 
 
25,012,787
 
 
 
26,460,110
 

Long term note receivable, less current portion

 
 
1,030,595
 
 
 
–
 

Right of Use Assets

 
 
11,384,763
 
 
 
12,342,475
 

 
 
118,272,963
 
 
 
123,724,880
 

TOTAL ASSETS

 
$
271,371,499
 
 
$
280,662,976
 

THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

LIABILITIES AND SHAREHOLDERS' EQUITY

 
June 27, 2020
 
 
December 28, 2019
 

 
(unaudited)
 
 
 
 

Current Liabilities

Accounts payable

 
$
18,942,706
 
 
$
19,960,507
 

Accrued compensation

 
 
2,044,562
 
 
 
3,815,186
 

Other accrued expenses

 
 
4,849,785
 
 
 
2,967,961
 

Current portion of long-term debt

 
 
5,187,689
 
 
 
5,187,689
 

Total Current Liabilities

 
 
31,024,742
 
 
 
31,931,343
 

Deferred income taxes

 
 
4,374,343
 
 
 
5,270,465
 

Other long-term liabilities

 
 
2,465,260
 
 
 
2,465,261
 

Lease liability

 
 
11,384,763
 
 
 
12,342,475
 

Long-term debt, less current portion

 
 
90,954,799
 
 
 
93,577,544
 

Accrued postretirement benefits

 
 
1,000,476
 
 
 
1,007,146
 

Accrued pension cost

 
 
27,388,381
 
 
 
28,631,485
 

Shareholders' Equity

Voting Preferred Stock, no par value:

Authorized and unissued: 1,000,000 shares

Nonvoting Preferred Stock, no par value:

Authorized and unissued: 1,000,000 shares

Common Stock, no par value, Authorized: 50,000,000 shares

 
 
31,100,484
 
 
 
30,651,815
 

Issued: 8,987,324 shares in 2020 and 8,975,434 shares in 2019

Outstanding: 6,237,595 shares in 2020 and 6,240,705 shares in 2019

Treasury Stock: 2,749,729 shares in 2020 and 2,734,729 shares in 2019

 
 
(20,537,962)
 
 
 
(20,169,098
)

Retained earnings

 
 
119,310,219
 
 
 
120,189,111
 

Accumulated other comprehensive loss:

Foreign currency translation

 
 
(2,564,356)
 
 
 
(2,037,952
)

Unrealized gain on marketable securities, net of tax

 
 
(6,796)
 
 
 
(471
)

Unrealized gain (loss) on interest rate swap, net of tax

 
 
(1,679,808)
 
 
 
167,489
 

Unrecognized net pension and postretirement benefit costs, net of tax

 
 
(22,843,046)
 
 
 
(23,363,637
)

Accumulated other comprehensive loss

 
 
(27,094,006)
 
 
 
(25,234,571
)

Total Shareholders' Equity

 
 
102,778,735
 
 
 
105,437,257
 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 
$
271,371,499
 
 
$
280,662,976
 

THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 
Six Months Ended
 

 
June 27, 2020
 
 
June 29, 2019
 

Operating Activities

Net income

 
$
1,007,036
 
 
$
4,100,733
 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

 
 
4,050,250
 
 
 
2,391,314
 

Unrecognized pension and postretirement benefits

 
 
(962,094)
 
 
 
448,214
 

Goodwill impairment loss

 
 
4,002,548
 
 
 
–
 

(Gain) loss on sale of equipment and other assets

 
 
(420,536)
 
 
 
2,208,740
 

Provision for doubtful accounts

 
 
156,286
 
 
 
43,420
 

Stock compensation expense

 
 
448,669
 
 
 
293,726
 

Changes in operating assets and liabilities:

Accounts receivable

 
 
3,408,873
 
 
 
(1,794,182
)

Inventories

 
 
(2,330,448)
 
 
 
3,618,303
 

Prepaid expenses and other

 
 
616,300
 
 
 
(21,533
)

Other assets

 
 
734,790
 
 
 
709,357
 

Accounts payable

 
 
(730,055)
 
 
 
(89,081
)

Accrued compensation

 
 
(1,697,444)
 
 
 
(1,307,966
)

Other accrued expenses

 
 
(927,178)
 
 
 
(1,893,440
)

Net cash provided by operating activities

 
 
7,356,997
 
 
 
8,707,605
 

Investing Activities

Marketable securities

 
 
8,389
 
 
 
(23,136
)

Business disposition

 
 
1,378,602
 
 
 
–
 

Proceeds from sale of equipment

 
 
445,212
 
 
 
–
 

Purchases of property, plant and equipment

 
 
(1,183,419)
 
 
 
(1,261,942
)

Net cash provided by/used in investing activities

 
 
648,784
 
 
 
(1,285,078
)

Financing Activities

Principal payments on long-term debt

 
 
(2,622,745)
 
 
 
(6,275,000
)

Note Receivable

 
 
(1,251,943)
 
 
 
–
 

Purchase common stock for treasury

 
 
(368,864)
 
 
 
–
 

Dividends paid

 
 
(1,372,673)
 
 
 
(1,373,700
)

Net cash used in financing activities

 
 
(5,616,225)
 
 
 
(7,648,700
)

Effect of exchange rate changes on cash

 
 
(400,006)
 
 
 
(31,690
)

Net change in cash and cash equivalents

 
 
1,989,550
 
 
 
(257,863
)

Cash and cash equivalents at beginning of period

 
 
17,996,505
 
 
 
13,925,765
 

Cash and cash equivalents at end of period

 
$
19,986,055
 
 
$
13,667,902
 

Reconciliation of earnings (loss) per share from GAAP to Non-GAAP financial measure

For the Three and Six Months ended June 27, 2020

 
Three Months Ended
 
 
Six Months Ended
 

 
June 27, 2020
 
 
June 29, 2019
 
 
June 27, 2020
 
 
June 29, 2019
 

Net Income (Loss) as reported per generally accepted accounting principles (GAAP)

 
$
(1,888,782)
 
 
$
2,529,773
 
 
$
1,007,036
 
 
$
4,100,733
 

Earnings (Loss) Per Share as reported under generally accepted accounting principles (GAAP):

Basic

 
$
(0.30)
 
 
$
0.41
 
 
$
0.16
 
 
$
0.66
 

Diluted

 
$
(0.30)
 
 
$
0.40
 
 
$
0.16
 
 
$
0.65
 

Adjustments for one-time expenses

Goodwill impairment loss (A)

 
$
(4,002,548)
 
 
 
 
 
 
$
(4,002,548)
 
 
 
 
 

Restructuring costs

 
$
(280,000)(B)
 
 
$
(1,799,293)(C)
 
 
$
(280,000)(B)
 
 
$
(2,635,987)(C)(D)
 

 
$
(4,282,548)
 
 
$
(1,799,293)
 
 
$
(4,282,548)
 
 
$
(2,635,987)
 

Adjusted Net Income (related to one-time expenses); (Non-GAAP)

 
$
2,393,766
 
 
$
4,329,066
 
 
$
5,289,584
 
 
$
6,736,720
 

Adjusted Earnings per share (related to one-time expenses); (Non-GAAP)

Basic

 
$
0.38
 
 
$
0.69
 
 
$
0.85
 
 
$
1.08
 

Diluted

 
$
0.38
 
 
$
0.69
 
 
$
0.85
 
 
$
1.08
 

A) Goodwill impairment
B) Cost incurred on disposition of Canadian Commercial Vehicles Corporation
C) Cost incurred on closure of Road IQ in Bellingham, Washington
D) Cost incurred on the relocation of Composite Panels Technology

Reconciliation of EBITDA from GAAP to Non-GAAP financial measure
For the Three and Six Months ended June 27, 2020 and June 29, 2019

 
Three Months Ended
 
 
Six Months Ended
 

 
June 27, 2020
 
 
June 29, 2019
 
 
June 27, 2020
 
 
June 29, 2019
 

Net Income(loss) as reported per generally accepted accounting principles (GAAP)

 
$
(1,888,782
)
 
$
2,529,773
 
 
$
1,007,036
 
 
$
4,100,733
 

Interest expense

 
 
606,553
 
 
 
261,618
 
 
 
1,434,217
 
 
 
554,158
 

Provision for (benefit from) income taxes

 
 
(543,061
)
 
 
754,725
 
 
 
339,521
 
 
 
1,239,458
 

Depreciation and amortization

 
 
1,994,468
 
 
 
952,515
 
 
 
4,050,250
 
 
 
2,391,314
 

Goodwill impairment loss

 
 
4,002,548(A)
 
 
 
 
 
 
 
4,002,548
 
 
 
 
 

Restructuring costs

 
 
280,000(B)
 
 
 
1,799,293(C)
 
 
 
280,000
 
 
 
2,635,987(C)(D)
 

Transaction costs

 
 
17,182
 
 
 
 
 
 
 
17,182
 
 
 
 
 

Adjusted EBITDA

 
$
4,468,908
 
 
$
6,297,924
 
 
$
11,130,754
 
 
$
10,921,650
 

A) Goodwill impairment
B) Cost incurred on disposition of Canadian Commercial Vehicles Corporation
C) Cost incurred on closure of Road IQ in Bellingham, Washington
D) Cost incurred on the relocation of Composite Panels Technology

SOURCE: The Eastern Company

ReleaseID: 599719

SEATTLE, WA / ACCESSWIRE / July 31, 2020 / GRN Holding Corporation (OTC PINK:GRNF), the "Company", announced today that the Company has entered into a binding letter of intent to acquire Microcap Advisors, LLC. This announcement follows the completion of due diligence earlier this year and will help to define the terms of a mutual definitive agreement to finalize the acquisition.

Microcap Advisors, LLC. (www.microcap-advisors.com), located in Los Angeles, California, is a professional services firm that assists companies in mezzanine finance, IPO services, reverse mergers, and capital structure. The firm has over 25 years of investment banking experience and is the go-to solution for both public and private dealmaking and structure. It anticipates opening new offices in Frankfurt, Germany and Vienna, Austria in 2020 to capture the explosive cannabis and hemp public plays expected in Europe. The acquisition will include all assets, inventory, licenses, intellectual property, and 100% equity in the business. Once the final agreement is complete, the company will be reclassified as a subsidiary corporation under GRN Holding Corporation.

About GRN Holding Corporation
GRN Holding Corporation (OTC PINK:GRNF) is a Nevada registered publicly-traded company.

For more information, please contact:
Justin Costello
IR@grnholding.com

Forward-Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-k, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.

SOURCE: GRN Holding Corporation

ReleaseID: 599748

2Q 2020 net sales totaled $3,400,000, up $465,000 or 16% versus prior year, primarily driven by organic growth, addition of new customers and new product line extensions
Net income for the quarter was $453,000 or 13.1% of net sales, an increase of $1,100,000, compared to a net loss of ($606,000) in the same period of 2019
EBITDA for the quarter was $596,000 or 17% of net sales, an increase of $1,100,000 versus ($481,000) EBIDTA in the second quarter of 2019
YTD EBITDA is $836,000 or 13% of net sales versus ($1,200,000) in 2019 for the same time frame.

CLEVELAND, OH / ACCESSWIRE / July 31, 2020 / Mace Security International (OTCQX:MACE) today announced second quarter 2020 financial results for the quarter ended June 30, 2020.

The Company's net sales for the second quarter were $3,400,000, up 16% versus prior year. The increase reflects organic growth across our retail and e-commerce channels, addition of new customers across core channel segments as well as product line extensions at existing retailers. Net sales across the consumer and e-commerce channels were up $867,000 even when offset by decreases in Sporting Goods and International channels of $239,000 due to store closures and product availability related to COVID-19.

The Company reported a gross margin rate for the quarter of 41%, up 1000 bp from the same time last year. SG&A expenses were $841,000 or 25% of net sales, compared with $1,400,000 or 48% in 2Q 2019, reflecting non-recurring charges last year. Working capital turns were 4.7 on an annualized basis.

President and CEO Gary Medved commented: "Our business exhibited increasing strength as the quarter progressed despite a few challenges created by COVID-19. The company's renewed focus on Mace® Brand, product lineup, and digital awareness allowed us to capitalize on the accelerated shift to consumer personal safety products, as well as online spending brought on by the pandemic. Between our branded website and online marketplaces, total digital sales increased triple digits on a percentage basis in the second quarter driven by existing customers and a dramatic increase in new customer acquisition."

"The pace accelerated as the quarter progressed. Meanwhile, the strong relationships we have forged with our key retail partners helped us weather a severe slowdown in April and early May due to reduced traffic and store closures. The country's lockdown restrictions began to ease midway through the second quarter, when we experienced a significant pick up in weekly sell-through at retail. Given the circumstances, we are pleased with our recent performance and encouraged as this momentum has carried into July and future months. Orders across retail and digital segments have increased in the past two months at a triple-digit percentage rate over the same period in 2019. Though uncertainty remains about the ultimate impact COVID-19 will have on the personal safety products industry, I am confident that our newly refined business model and strengthening balance sheet have Mace® Brand well positioned going forward."

Sanjay Singh, Executive Chairman, commented: "We raised the bar within the company on self-accountability and meeting commitments to our employees, customers and stakeholders. The entire team stepped up, from customer service to those who ship the products amidst challenging supply chain issues and a burgeoning backlog."

"Orders in April were the lowest the company has seen in a very long time but bounced back as businesses opened up in mid-May. The results of our awareness campaign also drove meaningful digital sales. The company is on a solid footing now as we focus our efforts on executing all the initiatives that were launched this year. Balance sheet strength and operations excellence continue to be our areas of focus. I am very proud and inspired by our team's ability to rise to the occasion. The focus on continuous improvement company-wide will continue in 3Q as we continue to ship a sizeable backlog. Gary and his team did a tremendous job this quarter."

Second Quarter 2020 Financial Highlights

Net sales increased $465,000 or 16% versus prior year, primarily driven by organic growth, addition of new customers both in retail and e-commerce segments and new product line extensions at retailers
Gross profit for the second quarter increased by $473,000 or 51% over the same period in the prior year, driven primarily by increased sales volume, labor efficiencies, and a non-recurring inventory provision that occurred last year
SG&A expenses declined by $578,000 to $841,000 for the quarter, or 25% of net sales, driven primarily by lower spending in salaries and benefits, reduced legal and outside marketing services, and a non-recurring impairment of receivables expense that occurred in the second quarter of 2019
Net income increased by$1,100,000
Cash and cash equivalents increased to $1,600,000 as of June 30, 2020, an increase of $1,300,000 over the $307,000 on hand on December 31, 2019. During the second quarter of 2020, the Company received $619,000 from our lender as part of the PPP stimulus.
Adjusted EBITDA for the quarter was $655,000 (1 cent per share)

Second Quarter 2020 Operational Highlights

The Company maintained full manufacturing and distribution activities throughout the quarter, and to date has experienced some supply chain disruptions due to the COVID-19 emergency. Labor efficiencies have improved over last year during the same time last year.

YTD 2020 Operational Highlights

Net Sales increased by $544,000 or 9.6% versus the same period last year driven by organic growth, product line extensions in the second quarter and sales to new customers
Gross Profits increased by $514,000 or 26% when compared to the same period last year mostly due to increases in labor efficiencies and the impact of one-time costs that occurred last year
SG&A decreased by $1,500,000 or 47% mostly from one-time costs that occurred last year and from cost controls and lower wages
Net Income was $573,000 or 9% of net sales versus a loss of $1,500,000 last year

Conference Call

Mace® will conduct a conference call on Tuesday August 4th, 2020 at 11 AM EDT, 8 AM PDT to discuss its financial and operational performance for the quarter.

Participant Toll-Free Dial-In Number: (833) 360-0862; Conference ID 9602639

A full set of the consolidated financial statements and accompanying slide presentation are available on www.Mace.com. A digital recording of the conference call will be available for replay two hours after the call's completion. The date ranges the recording will be available are listed below. To access the recording, use the dial-in number listed below and the conference ID 9602639

Encore dial-in number: 855-859-2056 (or internationally on 404-537-3406)
Encore dates: Will be available 2 hours after the call and will expire midnight on October 3, 2020

About Mace Security International, Inc.

Mace Security International Inc. is a globally recognized leader in personal safety products. Based in Cleveland, Ohio, the Company has spent more than 30 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand – the original trusted brand of pepper spray products. The Company's other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand personal alarms. The Company also offers aerosol defense sprays for law enforcement and security professionals worldwide through its Take Down® Brand.

Mace Security International distributes and supports its products and services through mass-market retailers, wholesale distributors, independent dealers, e-commerce channels and through its website, www.Mace.com. For more information, please visit www.mace.com.

Forward-Looking Statements

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "projected," "intend to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.

Mace Security International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands)

 
Three Months Ended June 30,
 

 
2020
 
 
2019
 

Net sales

 
$
3,432
 
 
$
2,967
 

Cost of goods sold

 
 
2,032
 
 
 
2,040
 

Gross profit

 
 
1,400
 
 
 
927
 

Selling, general, and administrative expenses

 
 
841
 
 
 
1,419
 

Amortization of intangible assets

 
 
96
 
 
 
67
 

Loss on disposal of property and equipment

 
 
–
 
 
 
29
 

Operating income (loss)

 
 
463
 
 
 
(588
)

Interest expense

 
 
(10)
 
 
 
(17
)

Other expense, net

 
 
–
 
 
 
(1
)

Income (loss) before income tax provision

 
 
453
 
 
 
(606
)

Income tax provision

 
 
–
 
 
 
–
 

Net income (loss)

 
$
453
 
 
$
(606
)

Mace Security International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands)

 
Six Months Ended June 30,
 

 
2020
 
 
2019
 

Net sales

 
$ 
6,223
 
 
$ 
5,679
 

Cost of goods sold

 
 
3,742
 
 
 
3,712
 

Gross profit

 
 
2,481
 
 
 
1,967
 

Selling, general, and administrative expenses

 
 
1,721
 
 
 
3,237
 

Amortization of intangible assets

 
 
165
 
 
 
134
 

Loss on disposal of property and equipment

 
 
–
 
 
 
29
 

Operating income (loss)

 
 
595
 
 
 
(1,433
)

Interest expense

 
 
(22)
 
 
 
(31
)

Interest income

 
 
–
 
 
 
4
 

Loss on short-term investments

 
 
–
 
 
 
(1
)

Other expense, net

 
 
–
 
 
 
(1
)

Income (loss) before income tax provision

 
 
573
 
 
 
(1,462
)

Income tax provision

 
 
–
 
 
 
–
 

Net income (loss)

 
$ 
573
 
 
$ 
(1,462
)

Mace Security International, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share information)

ASSETS

 
June 30, 2020
 
 
December 31, 2019
 

 
(Unaudited)
 
 
 
 

Current assets:

Cash

 
$ 
1,620
 
 
$ 
307
 

Accounts receivable, less allowance for doubtful accounts of $535 and

$536 at June 30, 2020 and December 31, 2019, respectively

 
 
2,246
 
 
 
1,544
 

Inventories

 
 
1,672
 
 
 
1,591
 

Notes receivable, net of allowance, and other current assets

 
 
276
 
 
 
446
 

Total current assets

 
 
5,814
 
 
 
3,888
 

Property and equipment:

Buildings and leasehold improvements

 
 
255
 
 
 
245
 

Machinery and equipment

 
 
2,017
 
 
 
2,003
 

Furniture and fixtures

 
 
110
 
 
 
110
 

Total property and equipment

 
 
2,382
 
 
 
2,358
 

Accumulated depreciation and amortization

 
 
(1,873)
 
 
 
(1,796
)

Total property and equipment, net

 
 
509
 
 
 
562
 

Operating lease – right-of-use asset, net of amortization

 
 
647
 
 
 
752
 

Finance lease – right-of-use asset, net of amortization

 
 
30
 
 
 
11
 

Goodwill

 
 
1,031
 
 
 
1,031
 

Intangible assets, net

 
 
2,579
 
 
 
2,744
 

Notes receivable, net of allowance, and other non-current assets

 
 
14
 
 
 
14
 

Total other assets

 
 
4,301
 
 
 
4,552
 

Total assets

 
$ 
10,624
 
 
$ 
9,002
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 
June 30, 2020
 
 
December 31, 2019
 

 
(Unaudited)
 
 
 
 

Current liabilities:

Current portion of long-term debt

 
$ 
220
 
 
$ 
215
 

Bank line of credit

 
 
600
 
 
 
600
 

Current operating lease obligation

 
 
211
 
 
 
209
 

Current finance lease obligation

 
 
6
 
 
 
3
 

Accounts payable

 
 
904
 
 
 
364
 

Income taxes payable

 
 
55
 
 
 
56
 

Accrued expenses and other current liabilities

 
 
364
 
 
 
412
 

Total current liabilities

 
 
2,360
 
 
 
1,859
 

Long-term debt, net of current portion

 
 
173
 
 
 
284
 

Payroll Protection Program Loan, non-current

 
 
619
 
 
 
–
 

Non-current operating lease obligations

 
 
455
 
 
 
565
 

Non-current finance lease obligations

 
 
25
 
 
 
8
 

Total liabilities

 
 
3,632
 
 
 
2,716
 

Stockholders' equity:

Preferred stock, $.01 par value; authorized 10,000,000 shares, no shares

issued and outstanding at June 30, 2020 and December 31, 2019

 
 
–
 
 
 
–
 

Common stock, $.01 par value; authorized 100,000,000 shares,

issued and outstanding shares of 63,954,003 and 63,319,834, at June 30,

2020 and December 31, 2019, respectively

 
 
639
 
 
 
633
 

Additional paid-in capital

 
 
103,379
 
 
 
103,252
 

Accumulated deficit

 
 
(97,004)
 
 
 
(97,577
)

 
 
7,014
 
 
 
6,308
 

Less treasury stock at cost, 90,548 shares at both June30, 2020

and December 31, 2019

 
 
(22)
 
 
 
(22
)

Total stockholders' equity

 
 
6,992
 
 
 
6,286
 

Total liabilities and stockholders' equity

 
$ 
10,624
 
 
$ 
9,002
 

Mace Security International, Inc. and Subsidiaries
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
(Amounts in thousands)

 
Three Months Ended June 30,
 

 
2020
 
 
2019
 

Net income (loss)

 
$ 
453
 
 
$ 
(606
)

Adjustments:

Interest expense

 
 
10
 
 
 
17
 

Interest income

 
 
–
 
 
 
–
 

Income tax expense

 
 
–
 
 
 
–
 

Depreciation and amortization

 
 
133
 
 
 
108
 

EBITDA

 
 
596
 
 
 
(481)
 

Severance

 
 
12
 
 
 
–
 

Non-cash stock compensation expense

 
 
47
 
 
 
6
 

Adjusted EBITDA

 
$ 
655
 
 
$ 
(475
)

Mace Security International, Inc. and Subsidiaries
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
(Amounts in thousands)

 
Six Months Ended June 30,
 

 
2020
 
 
2019
 

Net income (loss)

 
$ 
573
 
 
$ 
(1,462
)

Adjustments:

Interest expense

 
 
22
 
 
 
31
 

Interest income

 
 
–
 
 
 
(4
)

Income tax expense

 
 
–
 
 
 
–
 

Depreciation and amortization

 
 
241
 
 
 
218
 

EBITDA

 
 
836
 
 
 
(481)
 

Severance

 
 
–
 
 
 
–
 

Non-cash stock compensation expense

 
 
77
 
 
 
242
 

Adjusted EBITDA

 
$ 
913
 
 
$ 
(239
)

In this press release, the Company's financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company's business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached schedules.

Contacts:

Gary Medved
President and Chief Executive Officer
gmedved@mace.com

SOURCE: MACE SECURITY INTERNATIONAL INC

ReleaseID: 599731

HOLLYWOOD, CA / ACCESSWIRE / July 31, 2020 / Cannabis COPD treatment, CBD ancillary products, solar expansion, spiritual cooked healing, We're being played; this week on MoneyTV with Donald Baillargeon.

MoneyTV is the internationally syndicated television program all about money and what makes it happen, (http://www.moneytv.net), featuring informative interviews with company CEOs and executives, providing insights into their operations and outlooks for their futures. MoneyTV is seen in over 200 million TV households in more than 75 countries.

Free information packages from the featured companies can be requested by sending an email to info@moneytv.net.

The television program can also be viewed online immediately at www.moneytv.net.

Featured companies on this week's program include:

Singlepoint, Inc. (OTCQB:SING) CEO Greg Lambrecht gave details on an LOI for another solar acquisition.

PAO Group, Inc. (OTC PINK:PAOG) CEO Jim DiPrima announced a cannabis cultivation acquisition and discussed cannabis COPD treatment.

Hakuna Supply, a subsidiary of Sun Kissed Industries, Inc. (OTC PINK:SKDI) CEO Ilan Freeman announced a new company web site.

Spiritual Healer Lauralei Bradley said her spiritual healing has been used effectively to treat coronavirus.

MoneyTV Executive Producer and Anchor Donald Baillargeon is a broadcast industry veteran of more than 30 years and is also the host of MoneyRap Radio, http://www.moneyrap.com and the television program Crowdfund Television, http://www.crowdfundtelevision.com.

MoneyTV with Donald Baillargeon television program, Copyright MMXX, all rights reserved. MoneyTV does not provide an analysis of companies' financial positions and is not soliciting to purchase or sell securities of the companies, nor are we offering a recommendation of featured companies or their stocks. Information discussed herein has been provided by the companies and should be verified independently with the companies and a securities analyst. MoneyTV provides companies a 3 to 4 month corporate profile with multiple appearances for a cash fee of $6,950.00 to $11,995.00, does not accept company stock as payment for services, does not hold any positions, options or warrants in featured companies. The information herein is not an endorsement by Donald Baillargeon, the producer, publisher or parent company of MoneyTV.

Contact:

Donald Baillargeon
info@moneytv.net
949 388 5267

SOURCE: MoneyTV, Singlepoint, Inc., PAO Group, Inc., Hakuna Supply, a subsidiary of Sun Kissed Industries, Inc.

ReleaseID: 599636

LANGLEY, BC / ACCESSWIRE / July 31, 2020 / Adastra Labs Holdings Ltd. (CSE:XTRX)(FRANKFURT:D2EP) ("Adastra") a Health Canada Licensed cannabis processing and analytical testing services Company, is pleased to announce a tolling agreement with Muskoka Grown Ltd. ("Muskoka Grown").

"We are pleased to have received two shipments from Muskoka Grown, a small batch, high quality cannabis cultivator. We are fortunate to be able to leverage Muskoka Grown's quality growing with over 900 KG of quality cannabis flower and trim received to date under a split tolling agreement. Muskoka Grown's cannabis has been producing high-quality distillate and we look forward to continuing this tolling agreement." – Andy Hale, CEO Adastra.

Under the terms of the tolling agreement, Muskoka Grown provides cannabis biomass for toll processing by Adastra into cannabis distillate. The two Companies share the high-grade cannabis distillate produced.

"While Muskoka Grown remains focused on producing freshly packaged dried products, we are thrilled to provide our high grade cannabis as biomass for processing. We value this strategic partnership that has allowed us an opportunity to expand our revenue streams." David Grand, CEO & Founder, Muskoka Grown.

About Adastra Labs Holdings Ltd.

Adastra Labs Holdings Ltd. is a Langley, BC-based cannabis company with a co-located Health Canada Licensed Standard Processing Facility and Analytical Testing Laboratory. Adastra can produce cannabis extract through supercritical CO2 extraction and secondary distillation as well as conduct in-process quality testing. Such extracts can easily be incorporated into edibles, beverages, topicals, tinctures, vape cartridges and other products that will serve the Canadian medical and adult-use cannabis markets.

www.adastralabs.ca

About Muskoka Grown Limited
Muskoka Grown is a community-focused cannabis company committed to providing high-quality craft cannabis products, building meaningful connections with surrounding communities and positively contributing to the conservation of our natural surroundings. Muskoka Grown operates a purposely-built 65,000 sq. ft. cannabis cultivation and processing facility in Ontario. The company is passionate about cultivating in small-batch grow rooms and bringing freshly packaged cannabis to legal recreational adult-use markets.

For more information about Muskoka Grown, please visit our website, www.muskokagrown.com

For investor inquiries please contact:

Broidy Rondelet
Corporate Development and Investor Relations
roidyrondelet@muskokagrown.com

Andrew Hale
Chief Executive Officer
Adastra Labs Holdings Ltd.
Phone: (778) 715-5011
Email: andy@adastralabs.ca

Stephen Brohman
Chief Financial Officer
Adastra Labs Holdings Ltd.
Phone: (778) 715-5011
Email: steve@adastralabs.ca

Address: 5451 275th Street, Langley, BC V4W 3X8
Telephone: 778-715-5011
Fax: 844-874-9893

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: Adastra's expectations concerning fulfilling its obligations under its agreements, purchase orders and receiving the economic benefits of such agreements or purchase orders. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Adastra assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE: Adastra Labs Holdings Ltd.

ReleaseID: 599529

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

TORONTO, ON / ACCESSWIRE / July 31, 2020 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce that it has completed a non-brokered private placement for aggregate proceeds of $5,510,000, consisting of 9,500,000 "flow-through" common shares of the Company (the "FT Shares") at a price of $0.58 per FT Share (the "Offering"). Each FT Share will qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada).

"The proceeds from the Offering will allow us to accelerate Anaconda's highly prospective exploration growth programs in Atlantic Canada, including the exciting Tilt Cove Gold Project, the high-grade development Goldboro Gold Project, and other targets on trend from our fully-permitted and operating Pine Cove Mill and tailings facility in Point Rousse, Newfoundland."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

Any securities to be issued under the Offering will be subject to a hold period of four months and a day from the closing date of the Offering in accordance with the rules and policies of the Toronto Stock Exchange ("TSX"), and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.

The gross proceeds of the Offered Securities will be used primarily for exploration and diamond drill programs at the Company's highly prospective Tilt Cove Gold Project in Newfoundland ("Tilt Cove"), the Goldboro and Lower Seal Harbour projects in Nova Scotia, as well as multiple targets at the Point Rousse Project, particularly along the Scrape Trend, following recent success at Stog'er Tight (see press release dated July 7, 2020).

This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda, a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

ABOUT ANACONDA

Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~11,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information 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 state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the year ended December 31, 2019, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

FOR ADDITIONAL INFORMATION CONTACT:

Anaconda Mining Inc.
Kevin Bullock
President and CEO
(647) 388-1842
kbullock@anacondamining.com

Reseau ProMarket Inc.

Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
Dany.Cenac-Robert@ReseauProMarket.com

Anaconda Mining Inc.
Lynn Hammond
VP, Corporate Affairs
(709) 330-1260
lhammond@anacondamining.com

SOURCE: Anaconda Mining Inc.

ReleaseID: 599768