3 SIXTY SECURE PROVIDES OVERVIEW OF COVID-19 IMPACT ON THE COMPANY AND ANNOUNCES FINANCIAL STATEMENT FILING POSTPONEMENT
ALMONTE, Ontario, April 14, 2020 (GLOBE NEWSWIRE) — 3 Sixty Risk Solutions Ltd. (“3 Sixty” or the “Company”) (CSE: SAFE) (OTCQB: SAYFF) (FSE: 62P2) is designated as an essential service provider during the COVID-19 pandemic.
“I want to recognize the commitment and courage of our employees on the front lines,” said Thomas Gerstenecker, Founder and Chief Executive Officer of 3 Sixty. “I also appreciate the adaptability of those employees who are now working from home as they support our operations across Canada,” said Gerstenecker.
COVID-19 has had varying impacts on each service line within the Company, however being a diverse and flexible security solutions company gives us the ability to respond quickly to our clients’ needs across the country.
Our cash-in-transit operations have been moderately reduced due to temporary client closures resulting in at least 36 employee lay-offs, which equates to approximately 25% of our cash-in-transit employees.
The company has experienced a slight reduction on cannabis secure transport for retail deliveries. The demand for bulk shipment of product and eCommerce shipments remains steady. The result for our employees translates to reduced hours and one employee being laid off.
Our protective services/guarding operation has experienced significant growth due the high demand of providing these services to client facilities. This spike in demand, (with more than 100 new short-term hires), and revenue increase will off-set some of the revenue losses experienced in the two aforementioned service lines. Management believes this high demand will continue throughout the current pandemic.
The Company will continue to support its clients during these difficult times while ensuring to stay focused on its path to profitability, enhancing efficiencies and liquidity.
The current pandemic is an example for the need to be diverse and flexible in crisis situations. The Company will continue to secure more contracts, enabling 3 Sixty to pivot into other meaningful security solutions platforms.
Our employees located across Canada, which includes Vancouver, Calgary, Winnipeg, Brantford, Toronto, Kemptville, Smiths Falls, Almonte, Montreal, and Moncton have taken action to implement corporate protocols in line with Public Health Canada and the respective provincial guidelines.
We have implemented strict measures at each of our locations to include, but not limited to the following:
- Weekly Crisis Management Team meetings to address the emerging situation, and to ensure appropriate measures are undertaken and communicated
- Mandatory daily reporting and tracking of employees showing possible symptoms of COVID-19
- Travel restrictions and reduced access to all of the Companies facilities
- Work from home policy implemented for those not physically required on site
- Implementation of enhanced sanitization and physical distancing
- Restrictions on large meetings and gatherings, opting for video conferencing
We intend to continue to adopt and implement best practices as recommended by government and public health officials in response to the pandemic.
Annual Disclosure Document Filing Postponement
We also are announcing that due to logistics and delays caused by the COVID-19 pandemic, we are relying on the exemption provided in Ontario Instrument 51-502 of the Ontario Securities Commission (and similar exemptions provided by other Canadian Securities Regulators) to postpone the filing of the following continuous disclosure documents (collectively the “Documents”):
- The Company’s Annual Audited Financial Statements for the financial year ended December 31, 2019.
- The Company’s Management Discussion & Analysis for the financial year ended December 31, 2019.
Recent events pertaining to COVID-19 have impacted 3 Sixty, our employees and our directors’ ability to rely on timely information and meet to approve its financial statements and management’s discussion and analysis.
According to the Ontario instrument, during the period from March 23, 2020, to June 1, 2020, a person or company required to make certain filings as described in the Ontario instrument has an additional 45 days from the deadline otherwise applicable under Ontario securities laws to make the filing.
Until we have filed and announced the required financial statements and management’s discussion and analysis, members of management and other insiders are subject to a trading black-out policy that reflects the principles in section 9 of National Policy 11-207.
The estimated date by which the required disclosure is expected to be filed or the required document is expected to be sent or delivered is 12 June 2020, which supersedes the date specified in the Companies press release dated 27 February 2020.
Since the filing of our third quarter 2019 interim financial statements and related MD&A on November 19, 2019, we have disclosed by way of news release the following significant business developments:
- The resignation of Nancy Croitoru and Vernon White as directors of 3 Sixty on December 13, 2019.
- The resignation of Rick Gabrielson as a director of 3 Sixty on December 30, 2019.
- The departure of Carlo Rigillo as the CFO from 3 Sixty and the appointment of Candice Matthews as Interim Chief Financial Officer on February 26, 2020.
- The execution of multi-year contracts providing secure transport and guarding services to a number of cannabis-based companies in Canada on February 27, 2020.
About 3 Sixty Risk Solutions Ltd.
3 Sixty Risk Solutions Ltd., operating through its wholly-owned subsidiary, 3 Sixty Secure Corp., is one of Canada’s leading security service providers to the cannabis sector, transporting approximately $250 million of product every month. 3 Sixty provides cannabis security consulting, guarding and secure transport security services to more than 600 customers and more than 100 licensed cannabis producers, including some of the world’s largest, such as licensed producers owned by Canopy Growth Corporation. 3 Sixty has a staff of over 650 employees and employs a fleet of over 150 vehicles, which management believes provides a combined security footprint to approximately 35 million square feet of patrolled area.
For further information regarding the Company, please contact:
Thomas Gerstenecker, Founder and CEO, 3 Sixty Secure Corp.
1 (866) 360-3360
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: the business and operations of 3 Sixty. 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 such 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, 3 Sixty assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Source: 3 Sixty Secure