Decisive Dividend Corporation Provides Operational Update
The Corporation is consulting with the senior executives of its operating subsidiaries on a regular basis with a view to assessing the impact on the Corporation and its operating subsidiaries of COVID-19 and the recent decline in global oil prices. The global response to COVID-19 continues to evolve rapidly and has already had a significant impact on financial markets and the global economy.
In terms of the impact of these recent developments on the Corporation and its operating subsidiaries, the Corporation provides the following update as to determinations it has made as of today's date:
- The Corporation and its operating subsidiaries are following the recommendations of the applicable health authorities to prevent the spread of COVID-19. At this time, the Corporation's five operating subsidiaries are in low risk areas and remain operational. Barring further escalation in the situation, the Corporation expects that to continue.
- With respect to COVID-19, Unicast Inc. ("Unicast") has been the most directly impacted with much of its supply chain located in China. Unicast's business in January and February of 2020 was largely unaffected; however, management anticipates that results of operations for March 2020 may be impacted by manufacturing delays in China. Unicast has foundries outside of China that it can source from at a higher cost and will do so if and where necessary. Shipping of Unicast's products will also be impacted, and delays at the ports are expected to result in delivery delays for Unicast.
- With respect to the recent oil price decline based on the actions of Saudi Arabia and Russia, the Corporation anticipates that this could result in a decrease in business for Hawk Machine Works Ltd. ("Hawk"). Hawk's management is taking a proactive approach with a view to ensuring that its production team is sized for the expected activity levels. Management of Hawk has also expanded its sales team in recent months and is taking steps toward further customer and industry diversification.
A key aspect of the Corporation's business model is diversification. The Corporation's operations are diversified in terms of the industries, customers, and geographies served. Management believes that this diversification is valuable especially in times like these. As of today's date, COVID-19 has not had a significant impact to the business of the Corporation's other subsidiaries, other than operationally to ensure health and safety requirements.
The Corporation is continually assessing the actual and potential impact of these recent developments on the Corporation and its operating subsidiaries. The impact on the Corporation and its operating subsidiaries will depend on a number of factors, including the extent and duration of the impact of these recent developments on the overall economy, as well as the impact on the customers of its operating subsidiaries and the industries in which they operate.
About Decisive Dividend Corporation
Decisive Dividend Corporation is an acquisition-oriented company, focusing on the manufacturing sector. The Corporation uses a disciplined acquisition strategy to identify already profitable, established companies that have strong management teams, generate steady cash flow, operate in non-cyclical markets, and have opportunity for future growth.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Torriero, Chief Financial Officer
#201, 1674 Bertram Street
Kelowna, BC V1Y 9G4
Telephone: (250) 870-9146
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This press release contains forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release are considered forward-looking statements, including without limitation management's expectations, intentions and beliefs concerning the impact of recent developments on the Corporation and its operating businesses. Many of these statements can be identified with words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" and similar words or the negative thereof. Forward-looking statements are subject to risks, uncertainties and assumptions. Forward-looking statements reflect management's current beliefs and assumptions which are based on information in its possession on the date of this press release. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such assumptions and expectations will provide to be correct. The actual results of the Corporation and its operating subsidiaries could be materially different from those anticipated in the forward-looking statements contained herein as a result of certain risk factors. Such risk factors include but are not limited to the risk factors identified by the Corporation under the heading "Risk Factors" in its latest annual information form and management discussion and analysis, copies of which are available on the Corporation's profile at www.sedar.com, as well as risks associated with COVID-19 and the global response thereto, and the recent decline in oil prices. Such risks include, without limitation, the effect of these recent developments on the business of the customers and suppliers of the Corporation's operating subsidiaries, the ability of such customers and suppliers to assess and mitigate the impacts of these recent developments, and the general impact of these recent developments on the Canadian, U.S. and global economy. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Corporation does not undertake or assume any obligation to update or revise any such statement to reflect new events or circumstances except as expressly required by applicable securities laws.
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