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Anaergia Reports Fourth Quarter and Fiscal 2023 Financial Results

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BURLINGTON, Ontario–(BUSINESS WIRE)–Anaergia Inc. (Anaergia, the Company, we, us or our) (TSX: ANRG), a company that offers integrated waste-to-value solutions to reduce greenhouse gases (GHGs) by cost-effectively turning organic waste into renewable (RNG), fertilizer, and water, today announced its financial results for the three-month and the twelve-month periods ended December 31, 2023. All financial results are reported in Canadian dollars unless otherwise stated.

While there was a delay in the delivery of the financial statements, largely resulting from accounting and financial reporting impacts associated with the restructuring activities and transformation of the Company, we are encouraged to report that 2023 was a year of transition as our strategic review process is positively impacting the Company, noted Assaf Onn, CEO of Anaergia. Recent key developments, include the closings of the first two tranches of a previously announced three-tranche strategic investment in Anaergia by Marny Investissement SA., Mr. Onn added.

Fiscal 2023 Financial Results

Financial highlights:

  • Revenue for the fourth quarter of 2023 was $33.4 million, which is lower than revenue of $41.0 million reported for the same period in the previous year. For the year ended December 31, 2023 (Fiscal 2023), revenue decreased 9.2%, or $14.9 million, to $147.0 million compared to revenues in 2022. The decrease was driven mainly by lower Capital Sales revenue in the third quarter of 2023 due to a combination of some projects nearing completion, some projects facing customer and vendor delays, and delays in new project signings.
  • Gross profit of $3.5 million for the fourth quarter of 2023 increased by 84.4% compared to results in the prior year. The increase was due to the impact of newer contracts with higher margins in North America. Gross profit of $19.7 million for Fiscal 2023, decreased 26.1% compared to $26.7 million in gross profit in the prior year.
  • Net loss for the fourth quarter of 2023 was $34.1 million, compared to a net loss of $41.3 million for the same period in the previous year. The net loss for Fiscal 2023, increased to $192.8 million when compared to a net loss of $79.0 million for the prior year. The increase was mainly due to a loss related to the deconsolidation of the Rialto Bioenergy Facility (RBF) during the second quarter of 2023, estimated credit loss expenses taken during Fiscal 2023 (which included a loss on certain inter-company loans in the second quarter of 2023 that were determined to be no longer recoverable and subsequently sold to Arjun Infrastructure Partners in the third quarter of 2023 as part of the on-going strategic review), a single event where a letter of credit related to a terminated operation and maintenance contract was drawn, and a larger loss from operations due to increased selling and general administrative expenses.
  • Adjusted EBITDA1 for the fourth quarter of 2023 was ($7.7) million an improvement from adjusted EBITDA of ($18.9) million in the fourth quarter of the previous year. Adjusted EBITDA decreased to ($34.9) million for Fiscal 2023, from ($26.2) million in the prior year. The decrease for the year was due to a decline in gross profit and to increased operating expenses.

Three months ended:

31-Dec-23

31-Dec-22

(In thousands of Canadian dollars)

 

 

 

 

 

Revenue

33,408

41,025

Gross profit

3,494

1,895

Gross profit %

10.5%

4.6%

Loss from operations

(35,931)

(24,704)

Net loss

(34,058)

(41,303)

Adjusted EBITDA

(7,713)

(18,895)

Twelve months ended:

31-Dec-23

31-Dec-22

(In thousands of Canadian dollars)

 

 

 

 

 

Revenue

147,225

162,101

Gross profit

19,729

26,684

Gross profit %

13.4%

16.5%

Loss from operations

(85,802)

(36,839)

Net loss

(192,791)

(79,000)

Adjusted EBITDA

(34,914)

(26,188)

Statement of Financial Position:

31-Dec-23

31-Dec-22

(In thousands of Canadian dollars)

 

 

 

 

 

Total Assets

278,667

931,775

Total Liabilities

205,077

595,730

Equity

73,590

336,045

For a more detailed discussion of Anaergia’s results for the three-month and twelve-month periods ended December 31, 2023, please see the Company’s financial statements and management’s discussion & analysis, which are available at https://www.anaergia.com/investor-relations and on the Company’s SEDAR+ page at www.sedarplus.ca.

Other Significant Developments

Strategic Investment by Marny Investissement SA

On December 18, 2023, the Company announced a $40.8 million equity investment by Marny Investissement SA (Marny) by way of an arm’s-length, multi-tranche, non-brokered private placement (the Strategic Investment).

Marny, through Marny Holdco Inc. (Marny Holdco), agreed to subscribe for an aggregate of 102,000,000 units of the Company (Units) at a price of $0.40 per Unit with each Unit consisting of one subordinate voting share of the Company (Subordinate Voting Shares) and 1/5 of one Subordinate Voting Share purchase warrant of the Company (each a Warrant). Each Warrant will entitle Marny Holdco to purchase one additional Subordinate Voting Share at an exercise price of $0.80 for a period of three years following the closing of the first tranche. The Unit subscription price of $0.40 represented a 57% premium to the 10-day volume weighted average price of the Subordinate Voting Shares on the Toronto Stock Exchange (TSX) as of December 15, 2023.

On February 2, 2024, the Company announced that the first tranche of the Strategic Investment had closed with the issuance of 31,250,000 Units for gross proceeds of $12.5 million.

On April 1, 2024, the Company announced that the second tranche of the Strategic Investment had closed with the issuance of 34,000,000 Units for gross proceeds of $13.6 million.

The closing of the third tranche is anticipated to follow the lifting of the FFCTO (as defined below).

Failure-to-File Cease Trade Order

On April 8, 2024, the Ontario Securities Commission issued a failure to file cease trade order (the FFCTO) against the Company due to its failure to file the continuous disclosure materials required by National Instrument 51-102 “ Continuous Disclosure Obligations for Fiscal 2023. The FFCTO prohibits the trading by any person of any securities of the Company in Canada, including trades in the Subordinate Voting Shares made through the TSX. The FFCTO is not expected to be lifted until after the Company’s continuous disclosure materials for the interim period ended March 31, 2024 (the Interim Filings) are filed. The Company is working diligently to complete the Interim Filings and expects to be in a position to file such on or about July 6, 2024. The Interim Filings were due May 15, 2024.

Senior Leadership Change

The Company is announcing the resignation of its Chief Financial Officer, Andrew Spence, immediately following the First Quarter Interim Filing. Mr. Spence’s decision was based strictly on personal reasons and was not the result of any dispute or disagreement with the management or Board of Directors regarding policy, accounting matters or management practices.

Concurrently, Anaergia is appointing Gregory Wolf, CPA, MST, as its Interim Chief Financial Officer. Mr. Wolf brings over 25 years in executive leadership to the role, with extensive experience in financial management, strategic planning and operational oversight. With a proven track record in global operations, international accounting, audit, and corporate tax he has successfully led financial transformations and guided companies through complex transactions. Mr. Wolf holds a Bachelor of Science in Accountancy and a Masters in Taxation from Northern Illinois University, as well as a CPA certification from the University of Illinois.

In the meantime, Anaergia will commence an executive search for a new Chief Financial Officer. Mr. Spence will assist with Mr. Wolf’s transition and thereafter will be available in a limited advisory capacity to support a seamless transition process.

Non- International Financial Reporting Standards (IFRS) Measures

This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including Adjusted EBITDA and EBITDA to provide investors with supplemental measures. Management also uses non-IFRS measures internally in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our future debt service, capital expenditure and working capital requirements. Management believes these non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS measures. Management believes such measures are useful as they allow for assessment of our operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.

Definitions of non-IFRS measures used in this press release are provided below. A reconciliation of the non-IFRS measures used in this press release to the most comparable IFRS measure can be found below under Reconciliation of Non-IFRS Measures.

Adjusted EBITDA is defined as net earnings before finance costs, taxes and depreciation and amortization adjusted for our normalized proportionate interest in our BOO assets and one-time or non-recurring items, stock-based compensation expense, asset impairment charges and write downs, gains and losses for equity-accounted investees, foreign exchange gains or losses, restructuring costs, Enterprise Resource Planning (ERP) customization and configuration costs, litigation and other claims settlements, gains and losses resulting from changes in certain balance sheet valuations (such as derivatives and warrants), acquisition costs and costs related to our initial public offering, including estimated incremental auditing and professional services costs incurred in connection with our initial public offering.

EBITDA is defined as net income before finance costs, taxes and depreciation and amortization.

About Anaergia

Anaergia was created to eliminate a major source of GHGs by cost effectively turning organic waste into RNG, fertilizer and water through the use of proprietary technologies. With a track record of delivering innovative projects, Anaergia is uniquely positioned to provide solutions to today’s most pressing resource recovery challenges using a broad portfolio of proven technologies and multiple project delivery methods. Anaergia is one of the world’s only companies with a proprietary portfolio of end-to-end solutions that integrate solid waste processing as well as wastewater treatment with organics recovery, high efficiency anaerobic digestion, RNG production and recovery of fertilizer and water from organic residuals. The combination of these technologies enhances carbon-negative biogas, clean water and natural fertilizer production, utilizes a minimized footprint and lowers waste and wastewater treatment costs and GHG emissions.

For further information please see: www.anaergia.com

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, other future events or developments and may include, without limitation, information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding our future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as may, will, would, should, could, expects, plans, intends, estimate, believes, likely, or future or the negative or other variations of these words or other comparable words or phrases. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Forward-looking statements in this press release include, among other things, statements relating to financial condition and results of operations; statements regarding the Company’s ongoing strategic review; statements regarding the anticipated closing of the third tranche of the Strategic Investment; statements regarding the lifting of the FFCTO; statements regarding the filing of the Interim Filings; and statements regarding the appointment of an interim Chief Financial Officer.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that we considered appropriate and reasonable as of the date such statements were made. It is also subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors described in the Company’s annual information form and management’s discussion and analysis for the year ended December 31, 2023. Certain assumptions in respect of our ability to execute on our expansion plans; our ability to obtain or maintain existing financing on acceptable terms; that the third tranche of the Strategic Investment will close once the FFCTO is lifted; our ability to file the Interim Filings within the specified timeline; our ability to employ an interim Chief Financial Officer; and our ability of realizing the anticipated benefits of such are material factors underlying forward-looking information and management’s expectations.

The purpose of the forward-looking statements in this press release is to provide the reader with a description of management’s current expectations regarding the Company’s financial performance and may not be appropriate for other purposes. 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, which speaks only to opinions, estimates and assumptions as of the date made. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Reconciliation of Non-IFRS Measures

Three months ended:

31-Dec-23

31-Dec-22

(In thousands of Canadian dollars)

 

 

Net loss

(34,058)

(41,303)

Finance income (cost)

826

1,054

Depreciation and amortization

1,287

904

Income tax (benefit) expense

(2,126)

8,611

EBITDA

(34,071)

(30,734)

 

 

 

RBF non-controlling interest

(647)

Share-based compensation expense

595

508

(Gain) loss on RBF embedded derivative

(2,324)

Change in fair value of equity investment

656

Loss on sale of Anaergia ITA, B.V.

Fibracast Ltd. impairment

1,503

Remeasurement of previously held interest in Bioener, S.p.A.

92

Share of loss in equity accounted investees

765

581

Loss on control of the RBF

(4,056)

Expected credit loss on loans receivable from related parties

Impairment loss

26,336

Provision for customer claim

4,760

Remeasurement of debt

3,164

Other (gains) losses

1,066

4,852

ERP customization and configuration costs

262

Costs related to previous offerings

22

Foreign exchange (gain) loss

149

(87)

Adjusted EBITDA

(7,713)

(18,895)

Twelve months ended:

31-Dec-23

31-Dec-22

(In thousands of Canadian dollars)

 

 

Net income (loss)

(192,791)

(79,000)

Finance income (cost)

3,333

1,289

Depreciation and amortization

6,069

3,740

Income tax (benefit) expense

(8,606)

14,523

EBITDA

(191,995)

(59,448)

 

 

 

RBF non-controlling interest

1,544

(647)

Share-based compensation expense

1,941

1,335

(Gain) loss on RBF embedded derivative

7,953

16,676

Change in fair value of equity investment

656

Loss on sale of Anaergia ITA, B.V.

(665)

Fibracast Ltd. impairment

8,151

Remeasurement of previously held interest in Bioener, S.p.A.

(3,272)

Share of loss in equity accounted investees

6,726

5,204

Loss on control of the RBF

35,663

Expected credit loss on loans receivable from related parties

60,236

Impairment loss

29,727

Provision for customer claim

1,002

4,760

Remeasurement of debt

3,164

Other (gains) losses

4,586

4,388

ERP customization and configuration costs

542

1,178

Costs related to previous offerings

285

Foreign exchange (gain) loss

(325)

(467)

Adjusted EBITDA

(34,914)

(26,188)

_______
1 Adjusted EBITDA is a non-IFRS measure.

For media and/or investor relations please contact: IR@Anaergia.com

Source: Anaergia Inc.

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Trump transition team plans immediate WHO withdrawal, expert says

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By Maggie Fick and Ahmed Aboulenein

WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.

“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.

The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment. 

The Trump transition team did not immediately respond to a Reuters request for comment.

The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.

Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA. 

Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.

Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.

A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.

Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.

© Reuters. FILE PHOTO: U.S. President-elect Donald Trump attends Turning Point USA's AmericaFest in Phoenix, Arizona, U.S., December 22, 2024.  REUTERS/Cheney Orr/File Photo

Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems. 

“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.

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Just in: MicroStrategy Buys $561 Million More Bitcoin (BTC), Announces Saylor

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U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.

Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.

It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.

This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.

Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.

This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.

Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.

This article was originally published on U.Today

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Taylor Morrison Named Among America’s Most Trusted and Best Companies by Forbes

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National homebuilder ranked No. 12 on inaugural list ranking companies based on trust

SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12  out of 300 companies across all industries.

There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”

Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.

Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.

In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.

About  Taylor Morrison
Headquartered in  Scottsdale, Arizona,  Taylor Morrison  is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including  Taylor Morrison, Esplanade and Yardly. From 2016-2024,  Taylor Morrison  has been recognized as America’s Most Trusted ®  Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual  Sustainability and Belonging Report.  

For more information about  Taylor Morrison, please visit  www.taylormorrison.com.

CONTACT:
media@taylormorrison.com

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