Author: Newsdesk

RED BANK, N.J., Nov. 19, 2020 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) announces the Board of Directors has appointed Joseph J. Lebel III as President of its OceanFirst Bank N.A. (the “Bank”) subsidiary, effective January 1, 2021. Mr. Lebel will assume the responsibilities of President from Christopher D. Maher, who will remain Chairman of the Board and Chief Executive Officer of the Company and the Bank. Mr. Lebel has also been appointed to the Bank’s Board of Directors, also effective January 1, 2021.

Mr. Lebel joined the Bank in 2006 and is currently Executive Vice President and Chief Operating Officer. Prior to that, he was Chief Banking Officer and had also been the Chief Lending Officer. In addition to his current responsibilities for all operating regions, business lines and back office operations, as President, Mr. Lebel will assume responsibility for the commercial credit function with the Chief Credit Officer and Credit Administration department also reporting to him. Mr. Lebel has more than 35 years of commercial banking experience.

Chairman and CEO Christopher D. Maher commented on the announcement, “Joe and I have worked closely together to build our business over the past seven years and during that time he has demonstrated exceptional skills as a banker and an executive officer. The Bank is fortunate to have his continuing leadership in this new and expanded role.”

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.7 billion regional bank operating throughout New Jersey, metropolitan Philadelphia and metropolitan New York City. OceanFirst Bank delivers commercial and residential financing solutions, trust and asset management and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey.

OceanFirst Financial Corp.’s press releases are available by visiting www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood insurance premiums, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Company Contact:
Jill A. Hewitt
Senior Vice President
OceanFirst Financial Corp.
1.888.623.2633 ext. 7513
[email protected]

ATHENS, Greece, Nov. 19, 2020 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today its results for the three and nine-month period ended September 30, 2020.

Third
Quarter
2020
Highlights:

• Total net revenues of $12.3 million. Net income of $0.2 million; net income attributable to common shareholders (after a $0.2 million dividend on Series B Preferred Shares) of $0.03 million or $0.01 earnings per share basic and diluted. Adjusted net loss attributable to common shareholders¹ for the period was $1.5 million or $0.26¹ per share basic and diluted. 
• Adjusted EBITDA¹ was $1.2 million.
• An average of 16.52 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $8,403 per day.
• The Company declared a dividend of $0.2 million on its Series B Preferred Shares as required. The dividend will be paid in-kind by issuing additional Series B Preferred Shares.
• On August 3, 2020, the Company issued and sold 200,000 shares of its common stock through its at-the-market offering for net proceeds of approximately $0.7 million.
• In September 2020, the Company completed the sale of M/V Ninos for a total of approximately $2.3 million of net proceeds of which $1.0 million was used to repay the outstanding loan of the vessel.

Nine Months 2020 Highlights:

• Total net revenues of $41.3 million. Net income of $3.5 million; net income attributable to common shareholders (after a $0.5 million dividend on Series B Preferred Shares) of $2.9 million or $0.52 earnings per share basic and diluted. Adjusted net income attributable to common shareholders¹ for the period was $0.9 million or $0.15¹ per share basic and diluted.
• Adjusted EBITDA¹ was $9.7 million.
• An average of 18.17 vessels were owned and operated during the first nine months of 2020 earning an average time charter equivalent rate of $9,171 per day.

Recent developments

In November 2020, the Company completed the sale of M/V EM Athens for a total of approximately $4.9 million of net proceeds of which $3.75 million was used to repay the outstanding loan of the vessel. Also, in November 2020, the Company made a supplementary payment of $125,000 in common shares for each of the four vessels it acquired in November 2019 pursuant to the terms of the purchase agreement. The payment was contingent to certain market indices exceeding an agreed upon level, and as a result, the Company issued a total of approximately 161,000 common shares.

Aristides Pittas, Chairman and CEO of Euroseas commented
:

“Over the second and third quarters of this year we disposed four of our vessels, including the three eldest ones in our fleet, while in November we also sold the M/V EM Athens, a vessel that would have faced a significant drydocking expense later this year. After the above sales, our fleet numbers 14 vessels with an average age of 15.5 years. In parallel, since July, the feeder and intermediate containership markets have been getting stronger every week reaching –and for several size vessels exceeding – the highs observed over the last decade. If the present levels of rates are sustained, we expect that our vessels will generate significant cash flow and earnings, especially, when the present legacy charters are replaced with ones reflecting the levels of the market.

We are cautiously optimistic about the charter rate developments over the next year as we believe the potential return to normality after the pandemic could restore containerized trade to pre-pandemic -or, likely, higher- growth rates. Such a development when combined with the very low expected fleet growth, as the orderbook is at its lowest level of, at least, the last two decades, could support the current level of charter rates and even propel them to higher levels. We believe our current fleet is well positioned in terms of type and size of vessels to take full advantage of such developments.”

Tasos Aslidis, Chief Financial Officer of Euroseas commented:

“The results of the third quarter of 2020 reflect the increased net revenues compared to the same period of 2019 as we operated an average of 16.52 vessels, versus 13.5 vessels during the same period last year, partly offset by the slightly lower time charter rates our vessels earned in the third quarter of 2020 compared to the corresponding period of 2019. At the same time, total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, during the third quarter of 2020, averaged $6,759 per vessel per day, as compared to $6,388 for the same period of last year and $6,234 per vessel per day for the first nine months of 2020 as compared to $6,348 per vessel per day for the same period of 2019. The increased operating expenses for the third quarter of 2020 is mainly due to increased crewing costs for our vessels compared to the same period of 2019, resulting from difficulties in crew rotation due to COVID-19 related restrictions. In that respect, we are pleased to report that we have been able to rotate the crews on all of our vessels; the safety and well-being of our crew and the safety of our vessel operations are our first priority.

Adjusted EBITDA during the third quarter of 2020 was $1.2 million versus $1.6 million in the third quarter of last year, and it reached $9.7 million versus $4.1 million for the respective nine-month periods of 2020 and 2019.

As of September 30, 2020, our outstanding debt (excluding the unamortized loan fees) was $75.5 million versus restricted and unrestricted cash of $4.8 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $14.7 million excluding the unamortized loan fees).”

Third
Quarter
2020
Results:

For the third quarter of 2020, the Company reported total net revenues of $12.3 million representing a 19.7% increase over total net revenues of $10.3 million during the third quarter of 2019 which was the result of the increased average number of vessels operating in the third quarter of 2020, partly offset by the lower time charter rates our vessels earned in the third quarter of 2020 compared to the corresponding period of 2019. The Company reported net income for the period of $0.2 million and net income attributable to common shareholders of $0.03 million, as compared to a net loss of $0.2 million and a net loss attributable to common shareholders of $0.3 million respectively, for the third quarter of 2019. The results for the third quarter of 2020 include a $0.3 million amortization of below market time charters acquired and a $1.3 million of net gain on sale of vessels. Related party management fees for the three months ended September 30, 2020 were $1.4 million compared to $0.9 million for the same period of 2019. The increase is due to the higher average number of vessels operated by the Company in the third quarter of 2020 as compared to the same period of 2019. Depreciation expense for the third quarter of 2020 was $1.6 million as compared to $1.1 million for the same period of 2019 due to the increased number of vessels operated by the Company.

Vessel operating expenses for the same period of 2020 amounted to $8.2 million as compared to $6.3 million for the same period of 2019. The increased amount is mainly due to the higher number of vessels owned and operated in the three months of 2020 compared to the same period of 2019. Additionally, some of our vessels incurred increased crewing costs in the third quarter of 2020 compared to the same period of 2019, resulting from difficulties in crew rotation due to COVID-19 related restrictions.

On average, 16.52 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $8,403 per day compared to 13.5 vessels in the same period of 2019 earning on average $8,554 per day. 

Interest and other financing costs for the third quarter of 2020 amounted to $0.9 million compared to $0.8 million for the same period of 2019. This increase is due to the increased amount of debt in the current period compared to the same period of 2019, partly offset by the decreased Libor rates of our bank loans during the period as compared to the same period of last year.

Adjusted EBITDA¹ for the third quarter of 2020 was $1.2 million compared to $1.6 million achieved during the third quarter of 2019.

Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2020 was $0.01 calculated on 5,708,610 basic and diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $0.10 for the third quarter of 2019, calculated on 3,283,551 basic and diluted weighted average number of shares outstanding. 

Excluding the effect on the loss attributable to common shareholders for the quarter of the amortization of below market time charters acquired, the net gain on sale of vessels and the unrealized loss on derivative, the adjusted loss attributable to common shareholders for the quarter ended September 30, 2020 would have been $0.26 per share basic and diluted compared to an adjusted loss of $0.15 per share basic and diluted for the quarter ended September 30, 2019. Usually, security analysts do not include the above items in their published estimates of earnings per share.

Nine Months
2020
Results:

For the first nine months of 2020, the Company reported total net revenues of $41.3 million representing a 54.5% increase over total net revenues of $26.7 million during the first nine months of 2019, as a result of the increased average number of vessels combined with the higher time charter rates our vessels earned in the first nine months of 2020 compared to the corresponding period of 2019. The Company reported net income for the period of $3.5 million and net income attributable to common shareholders of $2.9 million, as compared to a net loss of $0.9 million and a net loss attributable to common shareholders of $2.5 million, respectively, for the first nine months of 2019. The results for the first nine months of 2020 include a $1.3 million net gain on sale of vessels, $1.5 million of amortization of below market time charters acquired, a $0.1 loss on write down of vessel held for sale and $0.6 million of unrealized loss on derivative. The results for the first nine months of 2019 include $0.2 million of amortization of below market time charters acquired and $0.04 million of unrealized gain on derivative. Related party management fees for the nine months ended September 30, 2020 were $4.0 million compared to $2.5 million for the same period of 2019. The increase is due to the higher average number of vessels operated by the Company in the first nine months of 2020 as compared to the same period of 2019. Depreciation expense for the first nine months of 2020 was $5.0 million compared to $2.7 million during the same period of 2019.

Vessel operating expenses for the same period of 2020 amounted to $24.7 million as compared to $16.1 million for the same period of 2019. The increased amount is mainly due to the higher number of vessels owned and operated in the nine months of 2020 compared to the same period of 2019.

Drydocking expenses amounted to $0.4 million for the nine months of 2020 (one vessel passed its intermediate survey in-water and two vessels their special survey in-water), compared to $1.2 million for the same period of 2019 where one of our vessels completed her special survey with drydock, another one completed her intermediate survey in-water and one vessel entered into drydock that was completed in the fourth quarter of 2019.

On average, 18.17 vessels were owned and operated during the first nine months of 2020 earning an average time charter equivalent rate of $9,171 per day compared to 11.83 vessels in the same period of 2019 earning on average $8,638 per day. 

Interest and other financing costs for the first nine months of 2020 amounted to $3.3 million compared to $2.3 million for the same period of 2019. This increase is due to the increased amount of debt in the current period compared to the same period of 2019, partly offset by the decreased Libor rates of our bank loans during the period as compared to the same period of last year. Adjusted EBITDA¹ for the first nine months of 2020 was $9.7 million compared to $4.1 million during the first nine months of 2019. 

Basic and diluted earnings per share attributable to common shareholders for the first nine months of 2020 were $0.52, calculated on 5,621,159 basic and diluted weighted average number of shares outstanding compared to basic and diluted loss per share of $1.19 for the first nine months of 2019, calculated on 2,129,233 basic and diluted weighted average number of shares outstanding. 

Excluding the effect on the income attributable to common shareholders for the first nine months of 2020 of the unrealized loss on derivative, the net gain on sale of vessels, the loss on write down of vessel held for sale and the amortization of the below market time charters acquired, the adjusted earnings per share attributable to common shareholders for the nine-month period ended September 30, 2020 would have been $0.15, compared to an adjusted loss of $1.30 per share basic and diluted for the same period in 2019. As mentioned above, usually, security analysts do not include the above items in their published estimates of earnings per share.

Fleet Profile:

The Euroseas Ltd. fleet profile as of November 17, 2020, is as follows:

Name	Type	Dwt	TEU	Year Built	Employment(*)	TCE Rate ($/day)
Container Carriers
AKINADA BRIDGE	Intermediate	71,366	5,610	2001	TC until Nov-21 plus 10-12 months option	$17,250; option $20,000
SYNERGY BUSAN	Intermediate	50,726	4,253	2009	TC until Feb-21 plus 4-6 months option	$8,100; option $12,000
SYNERGY ANTWERP	Intermediate	50,726	4,253	2008	TC until Mar-21	$8,000
SYNERGY OAKLAND	Intermediate	50,787	4,253	2009	TC until Jun-21	CONTEX(**) 4,250 TEU less 10%
SYNERGY KEELUNG	Intermediate	50,969	4,253	2009	TC until Dec-20/Jun-22 plus 8-12 months option	$10,000 until Jun-21; $11,750 until Jun-22; option $14,500
EM KEA (+)	Feeder	42,165	3,100	2007	TC until Jun-21	$8,100
EM ASTORIA (+)	Feeder	35,600	2,788	2004	TC until Dec-20	$8,500
EM CORFU	Feeder	34,654	2,556	2001	TC until Sep-21	$10,200
EVRIDIKI G	Feeder	34,677	2,556	2001	TC until Dec-20	$8,250
DIAMANTIS P.	Feeder	30,360	2,008	1998	TC until Aug-21	$6,500
EM SPETSES	Feeder	23,224	1,740	2007	TC until Nov-20 plus 5-7 months option	$7,000; option $8,100
EM HYDRA	Feeder	23,351	1,740	2005	TC until Feb-21	$7,200
JOANNA	Feeder	22,301	1,732	1999	TC until Feb-21	$8,050
AEGEAN  EXPRESS	Feeder	18,581	1,439	1997	TC until Dec-20	$5,900
Total Container Carriers	1 4	539,487	4 2 , 281

Note:
(*) Represents the earliest redelivery date under each time charter unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).

(**) The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for container ships. It is based on assessments of the current day charter rates of six selected container ship types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU all with a charter period of two years.

Summary Fleet Data:

	Three M onths, E nded September 30, 2019		Three M onths, E nded September 30, 2020		Nine M onths, E nded September 30, 2019		Nine  Months, Ended September 30, 2020
FLEET DATA
Average number of vessels (1)	13.50		16.52		11.83		18.17
Calendar days for fleet (2)	1,242.0		1,520.0		3,233.0		4,978.0
Scheduled off-hire days incl. laid-up (3)	6.5		–		42.8		210.3
Available days for fleet (4) = (2) – (3)	1,235.5		1,520.0		3,190.2		4,767.7
Commercial off-hire days (5)	–		32.3		38.4		132.1
Operational off-hire days (6)	0.9		1.8		1.3		71.5
Voyage days for fleet (7) = (4) – (5) – (6)	1,234.6		1,485.9		3,150.5		4,564.1
Fleet utilization (8) = (7) / (4)	99.9	%	97.8	%	98.8	%	95.7	%
Fleet utilization, commercial (9) = ((4) – (5)) / (4)	100.0	%	97.9	%	98.8	%	97.2	%
Fleet utilization, operational (10) = ((4) – (6)) / (4)	99.9	%	99.9	%	100.0	%	98.5	%
AVERAGE DAILY RESULTS (usd/day)
Time charter equivalent rate (11)	8,554		8,403		8,638		9,171
Vessel operating expenses excl. drydocking expenses (12)	5,858		6,307		5,756		5,777
General and administrative expenses (13)	530		452		592		457
Total vessel operating expenses (14)	6,388		6,759		6,348		6,234
Drydocking expenses (15)	333		40		365		88

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up, vessels committed for sale or vessels that suffered unrepaired damages, are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up, or of vessels that were committed for sale or suffered unrepaired damages.

(4) Available days. We define available days as the Calendar days in a period net of scheduled off-hire days as defined above. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.    

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent rate, or TCE rate, is a measure of the average daily revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:
Tomorrow, Friday, November 20, 2020 at 9:30 a.m. Eastern Standard Time the Company’s management will host a conference call to discuss the results.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote “Euroseas” to the operator.

A telephonic replay of the conference call will be available until Thursday, November 26, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code required for the replay is: 6973591#.  

Audio Webcast – Slides Presentation:

There will be a live and then archived audio webcast of the conference call, via the internet through the Euroseas website (www.euroseas.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

The slide presentation on the Third Quarter 2020 results will also be available in PDF format 10 minutes prior to the conference call and webcast, accessible on the company’s website (www.euroseas.gr) on the webcast page. Participants to the webcast can download the PDF presentation.

Euroseas Ltd.

Unaudited
Consolidated
Condensed Statements of Operations

(All amounts expressed in U.S. Dollars – except
number of
share
s
)

	Three Months Ended September 30, 2019		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2019		Nine Months Ended September 30, 2020
Revenues
Time charter revenue	10,783,133		12,882,144		27,952,803		43,148,575
Commissions	(484,708	)	(553,920	)	(1,234,728	)	(1,878,833		)
Net revenue s	10,2 98 ,4 25		1 2 , 328 , 224		26, 718 , 075		41 , 269 , 742
Operating expenses
Voyage expenses	222,389		395,743		737,952		1,290,792
Vessel operating expenses	6,326,195		8,180,727		16,114,329		24,710,877
Drydocking expenses	413,591		60,737		1,181,614		437,106
Vessel depreciation	1,090,126		1,615,111		2,687,550		5,001,837
Related party management fees	948,931		1,406,437		2,496,070		4,048,805
Net gain on sale of vessels	–		(1,305,016	)	–		(1,305,016		)
General and administrative expenses	658,013		686,928		1,913,764		2,274,205
Other operating income	–		–		–		(2,687,205		)
Loss on write down of vessel held for sale	–		–		–		121,165
Total operating expenses	9,659,245		11 , 040 , 667		25,131,279		3 3 , 892 , 566
Operating income	639,180		1, 287 , 557		1,586,796		7 , 377 , 176
Other income/(expenses)
Interest and other financing costs	(810,203	)	(930,886	)	(2,272,181	)	(3,320,074		)
Loss on debt extinguishment	–		–		(328,291	)	–
Loss on derivative, net	–		(96,485	)	(2,885	)	(564,631		)
Foreign exchange gain / (loss)	8,725		(44,721	)	7,875		(42,538		)
Interest income	5,065		3,411		91,141		16,191
Other expenses, net	(796,413	)	( 1,068 , 6 81	)	(2, 504 , 341	)	( 3 , 911 , 052		)
Net (loss) / income	(157,233	)	21 8 , 876		(917,545	)	3, 466 , 124
Dividend Series B Preferred shares	(161,315	)	(185,552	)	(1,110,467	)	(524,621		)
Preferred deemed dividend	–		–		(504,577	)	–
Net  ( loss ) / income attributable to common shareholders	(318,548	)	33 , 324		(2,532,589	)	2 , 941 , 503
Weighted average number of shares outstanding, basic and diluted	3,283,551		5,708,610		2,129,233		5,621,159
(L oss ) / e arnings per share, basic and diluted	(0. 1 0	)	0. 0 1		( 1 . 19	)	0. 52

Euroseas Ltd.

Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars – except number of shares)

	December 31, 2019		September 30, 2020
ASSETS
Current Assets :
Cash and cash equivalents	985,418		2,271,069
Trade accounts receivable, net	715,097		1,114,449
Other receivables	1,570,506		1,552,352
Inventories	1,889,164		2,214,978
Restricted cash	610,376		208,593
Prepaid expenses	526,531		300,203
Total current assets	6 , 297 , 092		7 , 66 1, 644
Fixed Assets:
Vessels, net	116,230,333		103,068,797
Long-term assets:
Restricted cash	4,334,267		2,334,267
Total assets	126 , 861 , 692		113 , 064 , 708
LIABILITIES , MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities :
Long-term bank loans, current portion	12,295,320		10,059,860
Related party loan, current	5,000,000		4,375,000
Trade accounts payable	3,899,967		2,717,260
Accrued expenses	1,725,321		1,491,029
Accrued preferred dividends	161,315		–
Derivative	–		336,420
Deferred revenue	973,774		550,298
Due to related company	795,562		328,133
Total current liabilities	24 , 851 , 259		19 , 85 8,000
Long-term liabilities
Long -term bank loans, net of current portion	72,187,785		60,563,619
Derivative	–		246,430
Fair value of below market time charters acquired	1,714,370		240,639
Total long term liabilities	73 , 902 , 155		61 , 050,688
Total liabilities	98 , 753 , 414		80 , 908 , 688
Mezzanine equity:
Series B Preferred shares (par value $0.01, 20,000,000 shares authorized, 8,000 and 8,363 issued and outstanding, respectively)	7 , 654 , 577		8 , 019 , 636
Shareholders’ equity:
Common stock (par value $0.03, 200,000,000 shares authorized, 5,600,259 and 5,800,259 issued and outstanding)	168,008		174,008
Additional paid-in capital	253,967,708		254,702,888
Accumulated deficit	(233,682,015	)	(230,740,512	)
Total shareholders’ equity	20 , 453 , 701		24,136,384
Total liabilities, mezzanine equity and shareholders’ equity	126 , 861 , 692		11 3 , 064 , 708

Euroseas Ltd.

Unaudited Consolidated Condensed Statements of Cash Flows

(All amounts expressed in U.S. Dollars)

	Nine Months Ended September 30, 2019		Nine Months Ended September 30, 2020
Cash flows from operating activities:
Net (loss) / income	(917,545	)	3,466,124
Adjustments to reconcile net (loss) / income to net cash provided by operating activities:
Vessel depreciation	2,687,550		5,001,837
Amortization of deferred charges	154,959		216,524
Share-based compensation	72,404		91,546
Net gain on sale of vessels	–		(1,305,016	)
Loss on write down of vessel held for sale	–		121,165
Gain on hull and machinery claim	–		(2,687,205	)
Amortization of fair value of below market time charters acquired	(184,950	)	(1,473,731	)
Unrealized (gain) / loss on derivative	(41,435	)	582,850
Amortization of debt discount	95,214		–
Loss on debt extinguishment	328,291		–
Changes in operating assets and liabilities	739,918		(2,309,846	)
Net cash provided by operating activities	2,934,406		1,704,248
Cash flows from investing activities:
Cash paid for vessel acquisitions and capitalized expenses	(15,153,626	)	–
Cash paid for vessel improvements	–		(451,846	)
Proceeds from vessels sale	–		9,752,649
Insurance proceeds			2,226,140
Net cash (used in) / provided by investing activities	(15,153,626	)	11, 526 , 943
Cash flows from financing activities:
Proceeds from issuance of common stock, net of commissions paid	–		715,550
Redemption of Series B preferred shares	(11,686,000	)	–
Preferred dividends paid	(870,512	)	(320,877	)
Loan arrangement fees paid	(214,500	)	–
Offering expenses paid	–		(40,846	)
Proceeds from long- term bank loans	28,167,680		–
Proceeds from related party loan	2,500,000		–
Repayment of long-term bank loans and vessel profit participation liability	(11,516,000	)	(14,076,150	)
Repayment of related party loan	–		(625,000	)
Net cash provided by / (used in) financing activities	6,380,668		(14,347,323	)
Net decrease in cash, cash equivalents and restricted cash	(5,838,552	)	(1,116,132	)
Cash, cash equivalents and restricted cash at beginning of period	13,211,588		5,930,061
Cash, cash equivalents and restricted cash at end of period	7 , 373 , 036		4 , 813 , 929
Cash breakdown
Cash and cash equivalents	3,164,030		2,271,069
Restricted cash, current	624,739		208,593
Restricted cash, long term	3,584,267		2,334,267
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	7 , 373 , 036		4 , 813 , 929

Euroseas Ltd.

Reconciliation of Net
income / (
loss
) to Adjusted EBITDA

(All amounts expressed in U.S. Dollars)

	Three Months Ended September 30, 2019		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2019		Nine Months Ended September 30, 2020
Net (loss) / income	(157,233	)	218,876		(917,545	)	3,466,124
Interest and other financing costs, net (incl. interest income and loss on debt extinguishment)	805,138		927,475		2,509,331		3,303,883
Vessel depreciation	1,090,126		1,615,111		2,687,550		5,001,837
Net gain on sale of vessels	–		(1,305,016	)	–		(1,305,016	)
Loss on write down of vessel held for sale	–		–		–		121,165
Amortization of below market time charters acquired	(184,950	)	(312,892	)	(184,950	)	(1,473,731	)
Loss on interest rate swap derivative	–		96,485		2,885		564,631
Adjusted EBITDA	1,553,081		1,240 , 039		4,097,271		9 , 678 , 893

Adjusted EBITDA Reconciliation:

Euroseas Ltd. considers Adjusted EBITDA to represent net income / (loss) before interest, income taxes, depreciation, loss on interest rate swap, net gain on sale of vessels, loss on write down of vessel held for sale and amortization of below market time charters acquired. Adjusted EBITDA does not represent and should not be considered as an alternative to net income / (loss), as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, net gain on sale of vessels, loss on write down of vessel held for sale, amortization of below market time charters acquired and loss on interest rate swap, and depreciation. The Company’s definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. 

Euroseas Ltd. 

Reconciliation of Net
(
loss
) / income
to Adjusted net
(
loss
) / income

(All amounts expressed in U.S. Dollars – except share data and number of shares)

	Three Months Ended September 30, 2019		Three Months Ended September 30, 2020		Nine Months  Ended September 30, 2019		Nine Months Ended September 30, 2020
Net (loss) / income	(157,233	)	218,876		(917,545	)	3,466,124
Unrealized loss / (gain) on derivative	–		114,704		(41,435	)	582,850
Net gain on sale of vessels	–		(1,305,016	)	–		(1,305,016	)
Loss on write down of vessel held for sale	–		–		–		121,165
Amortization of below market time charters acquired	(184,950	)	(314,434	)	(184,950	)	(1,473,731	)
Adjusted net ( loss ) / income	(342,183	)	( 1, 285 , 870	)	(1,143,930	)	1, 391 , 392
Preferred dividends	(161,315	)	(185,552	)	(1,110,467	)	(524,621	)
Preferred deemed dividend	–		–		(504,577	)	–
Adjusted net ( loss ) / income attributable to common shareholders	(503,498	)	( 1, 471 , 422	)	(2,758,974	)	866 , 771
Adjusted (loss) / earnings per share, basic and diluted	(0.15	)	(0.26	)	(1.30	)	0.15
Weighted average number of shares, basic and diluted	3,283,551		5,708,610		2,129,233		5,621,159

Adjusted net
(
loss
) / income
and Adjusted
(
loss
) / earnings
per share
Reconciliation:

Euroseas Ltd. considers Adjusted net (loss) / income to represent net (loss) / income before unrealized loss / (gain) on derivative, net gain on sale of vessels, loss on write down of vessel held for sale and amortization of below market time charters acquired. Adjusted net (loss) / income and Adjusted (loss) / earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized loss / (gain) on derivative, net gain on sale of vessels, loss on write down of vessel held for sale and amortization of below market time charters acquired, which items may significantly affect results of operations between periods.

Adjusted net (loss) / income and Adjusted (loss) / earnings per share do not represent and should not be considered as an alternative to net (loss) / income or (loss) / earnings per share, as determined by GAAP. The Company’s definition of Adjusted net (loss) / income and Adjusted (loss) / earnings per share may not be the same as that used by other companies in the shipping or other industries.

About Euroseas Ltd.

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. 

Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. 

The Company has a fleet of 14 vessels, including 9 Feeder containerships and 5 Intermediate Container carriers. Euroseas 14 containerships have a cargo capacity of 42,281 teu.

Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. 

Visit our website www.euroseas.gr

Company Contact	Investor Relations / Financial Media
Tasos Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane, Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: [email protected]	Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: [email protected]

---

¹Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under U.S. GAAP (GAAP) and should not be used in isolation or as a substitute for Euroseas financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

 

RED BANK, N.J., Nov. 19, 2020 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) announces the Board of Directors has appointed Joseph J. Lebel III as President of its OceanFirst Bank N.A. (the “Bank”) subsidiary, effective January 1, 2021. Mr. Lebel will assume the responsibilities of President from Christopher D. Maher, who will remain Chairman of the Board and Chief Executive Officer of the Company and the Bank. Mr. Lebel has also been appointed to the Bank’s Board of Directors, also effective January 1, 2021.

Mr. Lebel joined the Bank in 2006 and is currently Executive Vice President and Chief Operating Officer. Prior to that, he was Chief Banking Officer and had also been the Chief Lending Officer. In addition to his current responsibilities for all operating regions, business lines and back office operations, as President, Mr. Lebel will assume responsibility for the commercial credit function with the Chief Credit Officer and Credit Administration department also reporting to him. Mr. Lebel has more than 35 years of commercial banking experience.

Chairman and CEO Christopher D. Maher commented on the announcement, “Joe and I have worked closely together to build our business over the past seven years and during that time he has demonstrated exceptional skills as a banker and an executive officer. The Bank is fortunate to have his continuing leadership in this new and expanded role.”

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.7 billion regional bank operating throughout New Jersey, metropolitan Philadelphia and metropolitan New York City. OceanFirst Bank delivers commercial and residential financing solutions, trust and asset management and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey.

OceanFirst Financial Corp.’s press releases are available by visiting www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood insurance premiums, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Company Contact:
Jill A. Hewitt
Senior Vice President
OceanFirst Financial Corp.
1.888.623.2633 ext. 7513
[email protected]

(All amounts expressed in US dollars, unless otherwise stated)

VANCOUVER, British Columbia, Nov. 19, 2020 (GLOBE NEWSWIRE) — Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) today announced its financial results for the three months ended September 30, 2020 (“Q3-2020”), posting income from mining operations of $5.0 million and a net income of $1.9 million.

Fernando E. Ganoza, CEO and Director, commented, “We are pleased to report strong financial results despite selling only one concentrate shipment in the period. These results are a good reflection of the current strong metal price environment combined with our solid operating results. In the fourth quarter, we anticipate selling two concentrate shipments and financial results reflecting a very robust second half of the year. At El Roble, the team will continue focusing on the exploration program while achieving our planned operational targets. At La Plata, the focus continues to be the infill drill program to advance the feasibility study while also adding a step out drill program to test new target areas like Guatuza. As we continue to reap the rewards of strong financial results, our ability to carry out the planned growth programs at both El Roble and La Plata will be enhanced.” Mr. Ganoza continued, “Throughout the Company we continue to prioritize the health and safety of all of our employees during these unprecedented times.”

Third


Quarter


Financial Highlights

• Net income for the three months ended September 30, 2020 amounted to $1.9 million, compared with loss of $0.3 million for the same period last year (“Q3-2019”). Net income for the quarter was positively affected by an increase in concentrate shipped and invoiced at higher realized copper price and lower cost of sales per unit, as compared to Q3-2019.
• Sales for the period increased 47% to $14.1 million when compared with $9.6 million in Q3-2019. Copper (“Cu”) and gold (“Au”) accounted for 83% and 17% of the 9,291 (Q3-2019 – 6,911) dry metric tonnes (“DMT”) shipped and invoiced during Q3-2020. The average realized price per metal on invoicing was $2.98 (Q3-2019 – $2.62) per pound (“lbs”) of copper and $1,991 (Q3-2019 – $1,508) per ounce (“oz”) of gold.
• Working capital was $9.4 million (December 31, 2019 – $9.9 million), while the Company had $1.1 million (December 31, 2019 – $2.2 million) in long-term loans payable

• Cash costs⁽¹⁾ were $113.90 per tonne of processed ore and $1.13 per pound of payable copper produced⁽²⁾, which were increases of 6% and 5% over Q3-2019, respectively. The increase in the cash cost per pound of payable copper net of by products is primarily explained by a higher cost per processed tonne, along with lower by-product credit from gold.
• Cash margin⁽¹⁾⁽²⁾ was $1.85 (Q3-2019 – $1.54) per pound of payable copper produced, which was an increase of 20% over Q3-2019.
• All-in sustaining cash cost per payable pound of copper produced⁽¹⁾⁽²⁾ was $1.54 (Q2-2019 – $1.52).

Third


Quarter Summary of Financial Results

		Q 3 20 20			Q 3 2019			% Change
Revenue		$	14,064,743		$	9,581,287		47	%
Cost of sales			(9,070,796	)		(7,114,404	)	27	%
Income from mining operations			4,993,947			2,466,883		102	%
As a % of revenue			36	%		26	%	38	%
General and administrative expenses			1,046,709			1,210,816		-14	%
Income from operations			3,769,289			1,181,530		219	%
As a % of revenue			27	%		12	%	117	%
Income before income taxes			3,902,112			772,911		300	%
Net income (loss)			1,875,823			(303,470	)	718	%
As a % of revenue			13	%		–3	%	521	%
Operating cash flow before changes in non-cash operating working capital items(1)		$	3,057,114		$	3,842,918		-20	%

Third


Quarter


Operational


Review

In Q3-2020, the Company produced 5.5 million lbs of copper, 2,607 oz of gold, and 9,953 oz of silver. When compared to Q3-2019, production decreased by 3.0% for copper and 21.5% for gold. The decreases for both copper and gold were mainly driven by lower processed tonnes this quarter. In the case for copper, this was partially offset by higher head grades while gold was further impacted by a lower than anticipated recovery and head grade. We anticipate that gold recovery will improve in the fourth quarter.

Cash costs⁽¹⁾ for the period were $113.90 per tonne of processed ore, and $1.13 per pound of payable copper produced, increases of 6% and 5% over the Q3-2019, respectively. All-in sustaining cash cost per payable pound of copper produced⁽¹⁾⁽²⁾ was $1.54.

Third


Quarter


Operational Details

		Q 3 20 20	Q 3 201 9	% Change
Production (Contained in Concentrate)(3)
Copper (000s lbs)		5,540	5,712	-3	%
Gold (oz)		2,607	3,320	-22	%
Silver (oz)		9,953	12,216	-19	%
Mine
Tonnes of material mined		71,993	74,462	-3	%
Mill
Tonnes processed		73,603	76,532	-4	%
Tonnes processed per day		860	863	Nil%
Copper grade (%)		3.74	3.66	2	%
Gold grade (g/t)		1.93	2.34	-18	%
Silver grade (g/t)		9.20	10.80	-15	%
Recoveries
Copper (%)		91.4	92.5	-1	%
Gold (%)		57.0	58.0	-2	%
Silver (%)		47.0	45.7	3	%
Concentrates
Copper Concentrates (DMT)		11,957	11,757	2	%
Copper (%)		21.0	22.0	-5	%
Gold (g/t)		6.8	8.8	-23	%
Silver (g/t)		25.8	32.4	-20	%
Payable copper produced (000s lbs)		5,263	5,426	-3	%
Cash cost per pound of payable copper ($/lbs)(1)(2)		1.13	1.08	5	%

The financial statements and MD&A are available on SEDAR and have also been posted on the company’s website at http://www.aticomining.com/s/FinancialStatements.asp

El Roble Mine

The El Roble mine is a high grade, underground copper and gold mine with nominal processing plant capacity of 1,000 tonnes per day, located in the Department of Choco in Colombia. Its commercial product is a copper-gold concentrate. Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation from a historical nominal capacity of 400 tonnes per day.

El Roble has Proven and Probable reserves of 1.47 million tonnes grading 3.40% copper and 1.88 g/t gold, at a cut-off grade of 1.93% copper equivalent as of June 30, 2018. Mineralization is open at depth and along strike and the Company plans to further test the limits of the deposit.

On the larger land package, the Company has identified a prospective stratigraphic contact between volcanic rocks and black and grey pelagic sediments and cherts that has been traced by Atico geologists for ten kilometers. This contact has been determined to be an important control on volcanogenic massive sulfide (“VMS”) mineralization on which Atico has identified numerous target areas prospective for VMS type mineralization occurrence, which is the focus of the current surface drill program at El Roble.

La Plata Overview

The La Plata project is a gold rich volcanogenic massive sulphide deposit that was the subject of small-scale mining from 1975-1981 by Outokumpu Finland. The project benefits from a modern drill and exploration database which was completed by Cambior Inc. from 1996-1999, Cornerstone Capital from 2006-2009 and Toachi from 2016-2019. In total, there is drill core and logs from more than 28,300 metres of drilling.

Historic resources based on drilling by Cambior and Cornerstone were estimated at 913,977 tonnes grading 8.01 grams gold per tonne, 88.3 grams silver per tonne, 5.01% copper, 6.71% zinc and 0.78% lead per tonne in the inferred category. More recently, Toachi Mining completed a PEA estimating an inferred resource of 1.85 million tonnes grading 4.10 grams gold per tonne, 50.0 grams silver per tonne, 3.30% copper, 4.60% zinc and 0.60% lead per tonne.

The La Plata project consists two concessions covering a total area of 2,300 hectares along its 4-kilometer length, which contains known mineralization in two VMS lenses and nine priority exploration targets.

The Company has a binding option agreement with a private Ecuadorean company to earn up to 75% in the La Plata project, of which the first option to acquire the initial 60% ownership has been exercised. Please refer to the Company’s MD&A for the year ended December 31, 2019 for further details.

Qualified Person

Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.

About Atico Mining Corporation

Atico is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company operates the El Roble mine and is pursuing additional acquisition opportunities. For more information, please visit www.aticomining.com.

ON BEHALF OF THE BOARD

Fernando E. Ganoza
CEO
Atico Mining Corporation

Trading symbols: TSX.V: ATY | OTC: ATCMF

Investor Relations
Igor Dutina
Tel: +1.604.633.9022

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

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ‘‘U.S. Securities Act’’), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a “U.S. person” (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

Cautionary Note Regarding Forward Looking Statements

This announcement includes certain “forward-looking statements” within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and
develop the Company’s mineral projects; uncertainty of meeting anticipated program milestones for the Company’s mineral projects;
the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the coronavirus pandemic is minimized or not long-term; disruptions related to the COVID-19 pandemic or other health and safety issues, or the responses of governments, communities, the Company and others to such pandemic or other issues;
and other risks and uncertainties disclosed under the heading “Risk Factors” in the prospectus of the Company dated March 2, 2012 filed with
the Canadian securities regulatory authorities on the SEDAR website at

www.sedar.com

Non-GAAP Financial Measures

The items marked with a “(1)” are alternative performance measures and readers should refer to Non-GAAP Financial Measures in the Company’s Management’s Discussion and Analysis for the
nine
months
ended
September
3
0
, 2020
as filed on SEDAR and as available on the Company’s website for further details.

⁽¹⁾ Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.
⁽²⁾ Net of by-product credits
⁽³⁾ Subject to adjustments on final settlement

• Event to be webcast on Monday, December 14, 2020 at 1:00 PM (ET)

FLORHAM PARK, N.J., Nov. 19, 2020 (GLOBE NEWSWIRE) — Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a late clinical-stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases, today confirmed it will host a virtual Investor Day on December 14, 2020 from 1 pm to 3:30 pm Eastern Time. Members of Phathom’s management team and gastroenterology key opinion leaders will provide updates on the company’s pipeline and commercial strategy.

Those interested in participating are invited to pre-register at http://bit.ly/PHAT-investor-day-2020. A replay of the webcast and the slide presentation will be available after the meeting on the News & Events section of the Phathom website at https://investors.phathompharma.com/.  

About Phathom

Phathom Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of novel treatments for gastrointestinal diseases and disorders. Phathom has in-licensed the exclusive rights in the United States, Europe, and Canada to vonoprazan, a novel potassium competitive acid blocker (P-CAB) in late-stage development for the treatment of acid-related disorders. For more information about Phathom, visit the Company’s website at www.phathompharma.com or follow the Company on LinkedIn at www.linkedin.com/company/phathompharma.

CONTACTS

Media Contact:

Nick Benedetto
1-877-742-8466
[email protected]

Investor Contact:

Todd Branning
1-877-742-8466
[email protected]

– Human clinical testing now underway with Codiak’s first two candidates, exoIL-12™ and exoSTING™ –

– Initial safety results and preliminary systemic exposure/pharmacokinetics of exoIL-12 in healthy volunteers anticipated YE 2020 –

– Biomarker, safety and clinical outcome results in cancer patients anticipated mid-2021 for both exoSTING and exoIL-12 –

CAMBRIDGE, Mass., Nov. 19, 2020 (GLOBE NEWSWIRE) — Codiak BioSciences, Inc. (NASDAQ: CDAK), a clinical-stage company focused on pioneering the development of exosome-based therapeutics, today reported third quarter 2020 financial results and operational progress.

“Codiak was founded to realize the potential of engineered exosomes as a new and important class of biologic medicines for the treatment of a broad range of diseases,” said Douglas E. Williams, Ph.D., President and Chief Executive Officer of Codiak. “The creativity, expertise, and execution of our team has enabled us to bring the field’s first two engineered exosome candidates into the clinic and we are on track to initiate a third clinical program next year. The recent successful completion of our initial public offering provides additional funding to progress our development programs, invest in our platform and sustain the positive momentum we have built.”

Third Quarter 2020 and Recent Highlights

• Closed initial public offering (IPO) in October 2020, raising $74.4 million in net proceeds
• Initiated healthy volunteer dosing of exoIL-12 in a Phase 1 clinical trial designed to transition into patients with cutaneous T cell lymphoma (CTCL)
• Initiated subject dosing in a Phase 1/2 clinical trial of exoSTING for the treatment of advanced/metastatic, recurrent and injectable solid tumors
• Continued to advance exoASO™-STAT6 for the intravenous treatment of myeloid-rich cancers through IND-enabling studies
• Presented preclinical data on exoIL-12 and the engEx™ Platform at the 35^th Annual Meeting of the Society for Immunotherapy of Cancer (SITC)
• Expanded executive team with addition of Yalonda Howze as Executive Vice President, Chief Legal Officer
• Welcomed Jason Haddock to the Board of Directors and as Audit Committee Chairman

Anticipated Milestones and Events

• Initial safety, tolerability and systemic exposure/pharmacokinetics data from the healthy volunteer portion of the exoIL-12 Phase 1 clinical trial are expected by year-end, with biomarker, safety and preliminary pharmacodynamics and efficacy data in CTCL patients expected by mid-2021
• Safety and preliminary pharmacodynamics and efficacy data from exoSTING Phase 1/2 clinical trial in patients with solid tumors expected by mid-2021
• Evercore ISI HEALTHCONx Virtual Conference, December 2, 2020

Third Quarter 2020 Financial Results


Total revenues for the quarter ended September 30, 2020 were $1.0 million, compared to $0.2 million for the same period in 2019. This increase was primarily due to an increase in collaboration revenue driven primarily by activities in connection with the collaboration with Sarepta.

Net loss for the quarter ended September 30, 2020 was $35.3 million, compared to a net loss of $20.7 million for the same period in 2019. Net loss for the quarter ended September 30, 2020 was driven primarily by clinical development, general and administrative, and personnel expenses, and ongoing development of the engEx Platform. The current quarter net loss was inclusive of a $15.0 million milestone payment to Kayla Therapeutics in connection with dosing of the first patient in the Phase 1/2 clinical trial of exoSTING.

Research and development expenses were $30.7 million for the quarter ended September 30, 2020 compared to $16.5 million for the same period in 2019. The increase was primarily driven by an increase in license milestones, personnel costs, and clinical development expenses related to the initiation of the exo-IL12 and exoSTING clinical trials in September 2020.

General and administrative expenses were $5.3 million for the quarter ended September 30, 2020 compared to $4.8 million for the same period in 2019. The increase was primarily driven by an increase in consulting and legal fees, personnel costs, and other administrative expenses in anticipation of operating as a public company.

As of September 30, 2020, Codiak had cash, cash equivalents, and marketable securities of $48.3 million. In October 2020, the completion of the IPO resulted in net proceeds of $74.4 million.

About Codiak
BioSciences

Codiak is a clinical-stage biopharmaceutical company focused on pioneering the development of exosome-based therapeutics, a new class of medicines with the potential to transform the treatment of a wide spectrum of diseases with high unmet medical need. By leveraging the biology of exosomes as natural intercellular transfer mechanisms, Codiak has developed its proprietary engEx Platform to expand upon the innate properties of exosomes to design, engineer and manufacture novel exosome therapeutic candidates. Codiak has utilized its engEx Platform to generate a deep pipeline of engineered exosomes aimed at treating a broad range of disease areas, spanning oncology, neuro-oncology, neurology, neuromuscular disease and infectious disease.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among other things, statements concerning the development and therapeutic potential of exoSTING and exoIL-12, including timing of release of data, statements concerning the development of exoASO-STAT6, including the timing of initiation of its clinical program, and statements regarding the capabilities and potential of Codiak’s engEx Platform and engineered exosomes generally. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. For a discussion of these risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in Codiak’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, and in subsequent filings with the Securities and Exchange Commission, as well as discussions of potential risks, uncertainties and other important factors in Codiak’s subsequent filings with the Securities and Exchange Commission. All information in this press release is current as of the date of this report, and Codiak undertakes no duty to update this information unless required by law. 

Media Contact

Lindy Devereux
Scient PR
T: 646-515-5730
E: [email protected]

Investor Contact

Christine Labaree
Evergreen Communications
T: 650-600-1697
E: investor@codiakbio.com

CODIAK BIOSCIENCES, INC.
CONDENSED CONSOLIDATED BA
LANCE SHEETS

(In thousands, except share and per share data)
(Unaudited)

		SEPTEMBER   30, 2020				DECEMBER   31, 2019
Assets
Current assets:
Cash and cash equivalents		$	48,339			$	10,316
Investments			—				73,065
Restricted cash			—				367
Prepaid expenses and other current assets			4,022				10,370
Total current assets			52,361				94,118
Property and equipment, net			31,544				17,626
Restricted cash, net of current portion			4,170				4,170
Operating lease right-of-use assets			22,226				—
Other non-current assets			50				48
Total assets		$	110,351			$	115,962
Liabilities, Redeemable Convertible Preferred Stock and Stockholders ’ Deficit
Current liabilities:
Accounts payable		$	2,488			$	2,381
Accrued expenses			23,858				15,818
Deferred revenue			6,268				742
Deferred rent			—				814
Operating lease liabilities			1,778				—
Total current liabilities			34,392				19,755
Long-term liabilities:
Deferred revenue, net of current portion			58,069				54,870
Note payable, net of discount			24,825				9,572
Deferred rent, net of current portion			—				9,814
Operating lease liabilities, net of current portion			37,102				—
Total liabilities			154,388				94,011
Commitments and contingencies (Note 10)
Series A redeemable convertible preferred stock, $0.0001 par value; 33,200,000 shares authorized as of September 30, 2020 and December 31, 2019; 33,200,000 shares issued and outstanding as of September 30, 2020 and December 31, 2019; liquidation value as of September 30, 2020 and December 31, 2019 of $46,162 and $44,169, respectively			46,162				44,169
Series B redeemable convertible preferred stock, $0.0001 par value; 21,400,000 shares authorized as of September 30, 2020 and December 31, 2019; 20,583,328 and 20,520,828 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively; liquidation value as of September 30, 2020 and December 31, 2019 of $84,769 and $80,874, respectively			84,769				81,108
Series C redeemable convertible preferred stock, $0.0001 par value; 20,204,100 shares authorized as of September 30, 2020 and December 31, 2019; 20,204,079 shares issued and outstanding as of September 30, 2020 and December 31, 2019; liquidation value as of September 30, 2020 and December 31, 2019 of $94,102 and $89,507, respectively			94,102				89,507
Stockholders’ deficit:
Common stock, $0.0001 par value; 150,000,000 shares authorized as of September 30, 2020 and 120,000,000 shares authorized as of December 31, 2019; 3,195,355 and 2,997,040 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively			—				—
Additional paid-in capital			1,063				2
Accumulated other comprehensive income			—				43
Accumulated deficit			(270,133	)			(192,878	)
Total stockholders’ deficit			(269,070	)			(192,833	)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit		$	110,351			$	115,962

CODIAK BIOSCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPER
ATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)
(Unaudited)

		THREE MONTHS ENDED SEPTEMBER   30,								NINE MONTHS ENDED SEPTEMBER   30,
		2020				2019				2020				2019
Revenue:
Collaboration revenue		$	954			$	151			$	1,275			$	238
Total revenue			954				151				1,275				238
Operating expenses:
Research and development			30,640				16,546				60,653				41,794
General and administrative			5,342				4,835				13,933				16,786
Total operating expenses			35,982				21,381				74,586				58,580
Loss from operations			(35,028	)			(21,230	)			(73,311	)			(58,342	)
Other income (expense):
Interest income			4				344				246				1,145
Interest expense			(607	)			(3	)			(1,196	)			(3	)
Other income			338				226				553				878
Total other income (expense), net			(265	)			567				(397	)			2,020
Net loss		$	(35,293	)		$	(20,663	)		$	(73,708	)		$	(56,322	)
Cumulative dividends on redeemable convertible preferred stock			(3,457	)			(3,454	)			(10,296	)			(10,247	)
Net loss attributable to common stockholders		$	(38,750	)		$	(24,117	)		$	(84,004	)		$	(66,569	)
Net loss per share attributable to common stockholders, basic and diluted		$	(12.83	)		$	(8.05	)		$	(27.92	)		$	(22.29	)
Weighted average common shares outstanding, basic and diluted			3,020,055				2,995,917				3,008,576				2,986,889
Comprehensive income (loss):
Net loss		$	(35,293	)		$	(20,663	)		$	(73,708	)		$	(56,322	)
Other comprehensive income (loss):
Unrealized gain (loss) on investments, net of tax of $0			—				(8	)			(43	)			72
Total other comprehensive income (loss)			—				(8	)			(43	)			72
Comprehensive loss		$	(35,293	)		$	(20,671	)		$	(73,751	)		$	(56,250	)

SILVER SPRING, Md., Nov. 19, 2020 (GLOBE NEWSWIRE) — Aziyo Biologics, Inc. (Nasdaq: AZYO), a commercial-stage regenerative medicine company focused on creating the next generation of differentiated products and improving outcomes in patients undergoing surgery, today reported financial results for the three and nine months ended September 30, 2020.

Recent Highlights

• Recorded net sales of $11.8 million for the third quarter of 2020, representing a 6% increase over the third quarter of 2019
  • 31% growth in Core Products over Q3 2019
• Completed initial public offering, raising approximately $43.0 million in net proceeds, after deducting underwriting fees and other expenses
• Awarded “breakthrough technology” designation and subsequent group purchasing agreement from Premier Inc. to provide its alliance of approximately 4,100 U.S. hospitals and 200,000 other providers with access to Aziyo’s CanGaroo® Envelope
• Expanded partnership with Surgalign Holdings to include the distribution of Aziyo’s ViBone® Moldable, a next generation moldable cellular bone matrix product  

“Our third quarter results reflect the strong performance of our Core Products, which showed year-over-year growth in sales over 30%,” said Ron Lloyd, Chief Executive Officer. “Following our initial public offering in October, we are now better positioned financially and operationally to deliver on the opportunity we have in three large markets within regenerative medicine: implantable electronic devices, orthopedic and spine repair, and soft tissue reconstruction. Today, we are addressing this estimated $3 billion market with a comprehensive and growing portfolio of next-generation products driven by an expanding commercial team and partnerships with industry leaders.

“Looking ahead, we’re especially excited about our strong pipeline of anticipated new product launches, including a growing platform opportunity with CanGaroo to potentially reduce complications associated with a range of implantable electronic devices,” concluded Lloyd.

Third
Quarter
2020
Financial Results

Net sales for the third quarter of 2020 were $11.8 million, an increase of 6%, compared to the third quarter of 2019. The increase was driven primarily by growth of the company’s proprietary Core Products, which delivered sales of $10.3 million, a 31% increase over Q3 2019.

Gross profit for the third quarter of 2020 was $5.5 million and gross margin was 47%, as compared to 50% in the corresponding prior-year period. Gross margin, excluding intangible asset amortization (a non-GAAP financial measure) was 54% for the third quarter of 2020, as compared to 57% in the third quarter of 2019. The decrease in gross margin in Q3 2020 primarily resulted from a two-week shutdown of the company’s main production facility, resulting in plant costs being charged directly to cost of goods sold during this shutdown period rather than being a component of inventory, which allowed for the early completion of maintenance activities that would otherwise take place closer to year-end.

Total operating expenses were $8.2 million for the third quarter of 2020, as compared to $7.4 million in the corresponding prior year period, an increase of 11%. The increase was driven primarily by investments in research and development and increased general and administrative expenses in anticipation of the company’s initial public offering.

Net loss was $6.7 million in the third quarter of 2020, as compared to $3.1 million in the corresponding period of the prior year. Loss per share in the third quarter of 2020, which includes the accretion of deemed dividends to the preferred stockholders, was $15.79 per share, compared to a loss of $4.81 per share in the third quarter of 2019.

Cash and cash equivalents were $1.6 million as of September 30, 2020. However, following the end of the third quarter of 2020, Aziyo completed its initial public offering, raising approximately $43.0 million of net proceeds, after deducting underwriting fees and other expenses.

Conference Call

Aziyo will host a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time on Thursday November 19, 2020 to discuss its third quarter 2020 financial results. The call may be accessed through an operator by calling (833) 665-0667 for domestic callers and (914) 987-7319 for international callers using conference ID number 7952289. A live and archived webcast of the event will be available at https://investors.aziyo.com/.  

About
Aziyo Biologics

Aziyo Biologics is a commercial-stage regenerative medicine company focused on creating the next generation of differentiated products and improving outcomes in patients undergoing surgery, concentrating on patients receiving implantable medical devices. Since its founding in 2015, the Company has created a portfolio of commercial-stage products used in cardiovascular, orthopedic, and reconstructive specialties. For more information, visit www.Aziyo.com.         

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements and information concerning the Company’s anticipated financial performance; possible or assumed future results of operations, including descriptions of the Company’s revenues, profitability, outlook and overall business strategy; expectations regarding the Company’s operational position, opportunities and deliverables, goals, strategies, priorities and initiatives, including the expansion of the Company’s commercial team and partnerships; and expectations regarding the Company’s pipeline and anticipated new product launches, including platform opportunities with CanGaroo and the potential results thereof. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Aziyo’s public filings with the Securities and Exchange Commission (“SEC”), including Aziyo’s 424(b)(4) filed on October 8, 2020 in connection with the company’s initial public offering, as updated in Aziyo’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 to be filed with the SEC, and as such factors may be updated from time to time in Aziyo’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of Aziyo’s website at www.Aziyo.com. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business.

Investors:

Leigh Salvo or Caroline Paul
Gilmartin Group
[email protected]

AZIYO BIOLOGICS, INC.

CONSOLIDATED BALANCE SHEET DATA

(Unaudited, in thousands)

Assets	September 30, 2020				December 31, 2019
Current assets:
Cash	$	1,644			$	2,590
Accounts receivable, net		7,096				7,229
Inventory		9,788				7,190
Prepaid expense and other assets		3,685				1,437
Total current assets	$	22,213			$	18,446
Property and equipment, net		1,140				988
Intangible assets, net		22,714				25,262
Other assets		76				76
Total assets	$	46,143			$	44,772
Liabilities, Convertible Preferred Stock and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued expenses	$	13,542			$	8,955
Current portion of long-term debt and revenue interest obligation		5,640				4,442
Revolving line of credit		5,866				4,227
Deferred revenue and other current liabilities		537				650
Total current liabilities		25,585				18,274
Long-term debt		21,201				19,612
Long-term revenue interest obligation		16,667				16,596
Deferred revenue and other long-term liabilities		1,001				952
Total liabilities		64,454				55,434
Convertible preferred stock		56,593				44,449
Stockholders’ deficit:
Common stock		1				1
Additional paid-in capital		–				1,826
Accumulated deficit		(74,905	)			(56,938	)
Total stockholders’ deficit		(74,904	)			(55,111	)
Total liabilities, convertible preferred stock and stockholders’ deficit	$	46,143			$	44,772

AZIYO BIOLOGICS, INC.

CONSOLIDATED
STATEMENT OF OPERATIONS

(Unaudited, in thousands
, except share and per share data
)

	Three months ended September 30,							Nine months ended September 30,
		2020			2019				2020			2019
Net sales	$	11,774		$	11,138			$	30,216		$	30,847
Cost of goods sold		6,233			5,595				15,676			15,972
Gross profit		5,541			5,543				14,540			14,875
Operating expenses:
Sales and marketing		4,174			4,435				12,471			11,592
General and administrative		3,195			2,448				8,894			6,741
Research and development		863			507				2,811			1,742
Total operating expenses		8,232			7,390				24,176			20,075
Loss from operations		(2,691	)		(1,847	)			(9,636	)		(5,200	)
Interest expense		1,465			1,249				4,248			3,935
Other expense, net		2,567			–				2,567			–
Loss before provision of income taxes		(6,723	)		(3,096	)			(16,451	)		(9,135	)
Provision for income taxes		8			8				18			21
Net loss		(6,731	)		(3,104	)			(16,469	)		(9,156	)
Accretion of Convertible Preferred Stock		3,510			–				3,510			–
Net loss attributable to common stockholders	$	(10,241	)	$	(3,104	)		$	(19,979	)	$	(9,156	)
Net loss per share attributable to common stockholders –
basic and diluted	$	(15.79	)	$	(4.81	)		$	(30.82	)	$	(14.19	)
Weighted average common shares outstanding – basic and diluted		648,436			645,142				648,331			645,142

Non-GAAP Financial Measures

This press release presents our gross margin, excluding intangible asset amortization. We calculate gross margin, excluding intangible asset amortization, as gross profit, excluding amortization expense relating to intangible assets we acquired in our acquisition of all of the commercial assets of CorMatrix Cardiovascular, Inc. in 2017, divided by net sales. Gross margin, excluding intangible asset amortization, is a supplemental measure of our performance, is not defined by or presented in accordance with U.S. generally accepted accounting principles, (“GAAP”), has limitations as an analytical tool and should not be considered in isolation or as an alternative to our GAAP gross margin, gross profit or any other financial performance measure presented in accordance with GAAP. We present gross margin, excluding intangible asset amortization, because we believe that it provides meaningful supplemental information regarding our operating performance by removing the impact of amortization expense, which is not indicative of our overall operating performance. We believe this provides our management and investors with useful information to facilitate period-to-period comparisons of our operating results. Our management uses this metric in assessing the health of our business and our operating performance, and we believe investors’ understanding of our operating performance is similarly enhanced by our presentation of this metric.

Although we use gross margin, excluding intangible asset amortization, as described above, this metric has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may use other measures to evaluate their performance, which could reduce the usefulness of this non-GAAP financial measure as a tool for comparison.

The following table presents a reconciliation of our gross margin, excluding intangible asset amortization, to the most directly comparable GAAP financial measure, which is our GAAP gross margin (in thousands).

	Three months ended September 30,							Nine months ended September 30,
		2020			2019				2020			2019
Net sales	$	11,774		$	11,138			$	30,216		$	30,847
Gross profit		5,541			5,543				14,540			14,875
Intangible asset amortization expense		849			849				2,548			2,548
Gross profit, excluding intangible asset amortization	$	6,390		$	6,392			$	17,089		$	17,424
Gross margin		47	%		50	%			48	%		48	%
Gross margin percentage, excluding intangible asset amortization		54	%		57	%			57	%		56	%

NEW YORK, Nov. 19, 2020 (GLOBE NEWSWIRE) — PennantPark Investment Corporation (NASDAQ: PNNT) announced today financial results for the fourth quarter and fiscal year ended September 30, 2020.

HIGHLIGHTS
Quarter ended September 30, 2020
($ in millions, except per share amounts)

Assets and Liabilities:
Investment portfolio (1)		$	1,081.8
Net assets		$	525.7
GAAP net asset value per share		$	7.84
Increase in GAAP net asset value per share			0.3	%
Adjusted net asset value per share (2)		$	7.59
Increase in adjusted net asset value per share (2)			1.7	%
Truist Credit Facility		$	368.7
2024 Notes		$	83.8
SBA Debentures		$	115.8
Regulatory Debt to Equity			0.93x
Regulatory Net Debt to Equity (3)			0.88x
GAAP Net Debt to Equity (4)			1.03x
Yield on debt investments at quarter-end			8.9	%

		Quarter Ended September 30, 2020				Year Ended September 30, 2020
Operating Results:
Net investment income		$	7.3			$	38.7
GAAP net investment income per share		$	0.11			$	0.58
Non-recurring net PSLF transaction costs per share		$	0.03			$	0.03
Core net investment income per share (5)		$	0.14			$	0.61
Distributions declared per share		$	0.12			$	0.60
Portfolio Activity:
Purchases of investments		$	27.1			$	319.3
Sales and repayments of investments		$	48.6			$	162.7
Number of new portfolio companies invested		3				25
Number of existing portfolio companies invested		7				58
Number of ending portfolio companies		80				80

____________
(1)	Includes investments in PennantPark Senior Loan Fund, LLC, or PSLF, an unconsolidated joint venture, totaling $99.3 million, at fair value.
(2)	This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance excluding the impact of the $17.0 million unrealized loss on our multi-currency, senior secured revolving credit facility with Truist Bank, as amended, or the Truist Credit Facility, and, together with our credit facility with BNP Paribas, as amended, the Credit Facilities. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
(3)	This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance net of $25.8 million of cash and equivalents. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
(4)	This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance including the impact of the $17.0 million unrealized loss on the Truist Credit Facility, Small Business Act, or SBA, Debentures and net of $25.8 million of cash and equivalents. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
(5)	Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company’s financial performance excluding $2.2 million of expenses related to the PSLF transaction. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

CONFERENCE CALL AT 10:00 A.M. EST ON NOVEMBER 20, 2020

PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will host a conference call at 10:00 a.m. (Eastern Standard Time) on Friday, November 20, 2020 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (866) 548-4713 approximately 5-10 minutes prior to the call. International callers should dial (323) 794-2093. All callers should reference conference ID #2765446 or PennantPark Investment Corporation. An archived replay of the call will be available through December 4, 2020 by calling toll-free (888) 203-1112. International callers please dial (719) 457-0820. For all phone replays, please reference conference ID #2765446.

INCENTIVE FEE WAIVER EXTENSION

We have concluded, in consultation with our board, to extend the incentive fee waiver for an additional quarter through December 31, 2020.

PORTFOLIO AND INVESTMENT ACTIVITY

“We are pleased with the solid performance of our portfolio through the challenging economic conditions of the last few quarters,” said Arthur Penn, Chairman and CEO. “We are particularly pleased with the upsizing of our PSLF JV with Pantheon as well as substantial equity positions in several high growth companies which are solidifying and bolstering NAV.”

As of September 30, 2020, our portfolio totaled $1,081.8 million and consisted of $439.0 million of first lien secured debt, $220.8 million of second lien secured debt, $113.6 million of subordinated debt (including $63.0 million in PSLF) and $308.3 million of preferred and common equity (including $36.3 million in PSLF). Our debt portfolio consisted of 93% variable-rate investments. As of September 30, 2020, we had two portfolio companies on non-accrual, representing 4.9% and 3.4% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $83.8 million as of September 30, 2020. Our overall portfolio consisted of 80 companies with an average investment size of $13.5 million, had a weighted average yield on interest bearing debt investments of 8.9% and was invested 41% in first lien secured debt, 20% in second lien secured debt, 10% in subordinated debt (including 6% in PSLF) and 29% in preferred and common equity (including 3% in PSLF). As of September 30, 2020, all of the investments held by PSLF were first lien secured debt. For more information on how the COVID-19 pandemic has affected our business and results of operations, see our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

As of September 30, 2019, our portfolio totaled $1,219.4 million and consisted of $695.3 million of first lien secured debt, $269.3 million of second lien secured debt, $61.2 million of subordinated debt and $193.7 million of preferred and common equity. Our debt portfolio consisted of 87% variable-rate investments and 13% fixed-rate investments. As of September 30, 2019, we had no portfolio companies on non-accrual. Overall, the portfolio had net unrealized depreciation of $37.6 million as of September 30, 2019. Our overall portfolio consisted of 67 companies with an average investment size of $18.2 million, had a weighted average yield on interest bearing debt investments of 9.8% and was invested 57% in first lien secured debt, 22% in second lien secured debt, 5% in subordinated debt and 16% in preferred and common equity.

For the three months ended September 30, 2020, we invested $27.1 million in three new and seven existing portfolio companies with a weighted average yield on debt investments of 7.0%. Sales and repayments of investments for the same period totaled $48.6 million. This compares to the three months ended September 30, 2019, in which we invested $38.8 million in three new and 11 existing portfolio companies with a weighted average yield on debt investments of 8.4%. Sales and repayments of investments for the same period totaled $100.9 million.

For the year ended September 30, 2020, we invested $319.3 million in 25 new and 58 existing portfolio companies with a weighted average yield on debt investments of 8.4%. Sales and repayments of investments for the same period totaled $162.7 million.

For the year ended September 30, 2019, we invested $533.6 million in 24 new and 49 existing portfolio companies with a weighted average yield on debt investments of 9.4%. Sales and repayments of investments for the same period totaled $426.5 million.

PennantPark Senior Loan Fund, LLC

As of September 30, 2020, PSLF’s portfolio totaled $353.4 million, consisted of 37 companies with an average investment size of $9.6 million and had a weighted average yield on debt investments of 7.3%.

For the period ended July 31, 2020 (inception) through September 30, 2020, PSLF invested $5.7 million in one new portfolio company with a weighted average yield on debt investments of 7.5%. PSLF’s sales and repayments of investments for the same period totaled $11.1 million.

RECENT DEVELOPMENTS

Effective October 31, 2020, certain entities and managed accounts of the private credit investment manager of Pantheon Ventures (UK) LLP, or Pantheon, our joint-venture partner, contributed an additional $27.5 million to PSLF, bringing their total contribution to $62.5 million. Pantheon’s additional investment came in at the then current net asset value. At the same time, the Company has also invested an additional $1.8 million in PSLF. As a result, the Company currently owns 60.5% of the joint venture. Additionally, in connection with this transaction, BNP Paribas has increased the size of PSLF’s credit facility from $250.0 million to $275.0 million.

Subsequent to September 30, 2020, our portfolio company, Cano Health, LLC (ITC Rumba, LLC), entered into a business combination agreement with Jaws Acquisition Corp (“JWS”), a special purpose acquisition vehicle, and other parties, subject to certain closing conditions, with an expected closing late first quarter or early second quarter 2021. Based on the closing stock price of JWS on November 13, 2020, our $18.8 million common stock fair valuation as of September 30, 2020 would increase to an estimated $72.3 million, which includes a combination of cash and stock, assuming the transaction closes based on the agreed terms. This would represent a net asset value increase of $0.80 per share, as of November 13, 2020. Our shares are owned by a limited partnership controlled by the financial sponsor and are subject to customary lock up restrictions. As a result, the fair value on December 31, 2020, may likely include an illiquidity discount not in the public trading values indicated above. There can be no assurance that the implied value of our equity interest will be representative of the value ultimately realized on our equity investment.

RESULTS OF OPERATIONS

Set forth below are the results of operations for the years ended September 30, 2020 and 2019.

Investment Income

Investment income for the three months ended September 30, 2020 and 2019 was $21.3 million and $27.9 million, respectively, and was primarily attributable to $12.3 million and $17.0 million from first lien secured debt, $5.3 million and $8.7 million from second lien secured debt and $3.7 million and $2.2 million from subordinated debt and preferred and common equity, respectively.

Investment income for the years ended September 30, 2020 and 2019 was $100.2 million and $112.1 million, respectively, and was attributable to $63.4 million and $62.6 million from first lien secured debt, $25.9 million and $41.4 million from second lien secured debt and $10.9 million and $8.1 million from subordinated debt and preferred and common equity, respectively. The increase in investment income over the prior year was primarily due to an increase in our portfolio at cost.

Expenses

Net expenses for the three months ended September 30, 2020 and 2019 totaled $14.0 million and $18.3 million, respectively. Base management fee totaled $4.4 million and $4.6 million, debt related interest and other financing costs totaled $8.2 million (including one-time costs of $2.2 million associated with the PSLF transaction) and $12.2 million (including one-time debt related costs of $4.4 million), general and administrative expenses totaled $1.2 million and $1.2 million and provision for taxes totaled $0.3 million and $0.3 million, respectively, for the same periods.

Net expenses for the years ended September 30, 2020 and 2019 totaled $61.5 million and $67.5 million, respectively. Base management fee totaled $18.6 million and $18.2 million, incentive fee totaled $2.7 million (after an incentive fee waiver of $1.9 million) and $5.1 million, debt related interest and other financing expenses totaled $34.4 million (including one-time costs of $2.2 million associated with the PSLF transaction) and $38.2 million (including one-time debt related costs of $9.2 million), general and administrative expenses totaled $4.7 million and $4.7 million and provision for taxes totaled $1.2 million and $1.2 million, respectively, for the same periods. The decrease in expenses over the prior year was primarily due to a decrease in debt related expenses as well as the incentive fee waiver.

Net Investment Income

Net investment income totaled $7.3 million, or $0.11 per share, and $9.6 million, or $0.14 per share, for the three months ended September 30, 2020 and 2019, respectively.

Net investment income totaled $38.7 million, or $0.58 per share, and $44.6 million, or $0.66 per share, for the years ended September 30, 2020 and 2019, respectively. The decrease in net investment income per share compared to the prior year was primarily due to a decrease in LIBOR.

Net Realized Gains or Losses

Sales and repayments of investments for the three months ended September 30, 2020 and 2019 totaled $48.6 million and $100.9 million, respectively, and net realized losses totaled $10.1 million and $18.4 million, respectively, for the same periods.

Sales and repayments of investments for the years ended September 30, 2020 and 2019 totaled $162.7 million and $426.5 million, respectively, and net realized losses totaled $20.8 million and $108.5 million, respectively. The change in realized gains/losses was primarily due to changes in the market conditions of our investments and the values at which they were realized, including the net realized loss on Superior Digital Displays, LLC during the year ended September 30, 2019.

Unrealized Appreciation or Depreciation on Investments, Credit Facilities, and the 2019 Notes

For the three months ended September 30, 2020 and 2019, we reported a net change in unrealized appreciation on investments of $21.3 million and $21.2 million, respectively. For the years ended September 30, 2020 and 2019, we reported net change in unrealized (depreciation) appreciation on investments of ($46.2) million and $74.1 million, respectively. As of September 30, 2020 and 2019, our net unrealized depreciation on investments totaled $83.8 million and $37.6 million, respectively. The net change in unrealized appreciation/depreciation on our investments for the year ended September 30, 2020 compared to the prior year was primarily due to changes in the capital market conditions as well as the financial performance of certain portfolio companies primarily driven by the market disruption caused by the COVID-19 pandemic and the uncertainty surrounding its continued adverse economic impact. For more information on how the COVID-19 pandemic has affected our business and results of operations, see our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

For the three months ended September 30, 2020 and 2019, our Credit Facilities had a net change in unrealized appreciation of $9.0 million and $4.2 million, respectively. For the years ended September 30, 2020 and 2019, our Credit Facilities and our 4.5% notes due 2019, or the 2019 Notes, had a net change in unrealized depreciation of $12.3 million and $5.7 million, respectively. As of September 30, 2020 and 2019, our net unrealized depreciation on our Credit Facilities and, prior to their redemption, the 2019 Notes totaled $19.6 million and $7.2 million, respectively. The net change in unrealized depreciation for the year ended September 30, 2020 compared to the prior year was primarily due to changes in the capital markets.

Net Change in Net Assets Resulting from Operations

Net change in net assets resulting from operations totaled $9.5 million, or $0.14 per share, and $8.2 million, or $0.13 per share, for the three months ended September 30, 2020 and 2019, respectively.

Net change in net assets resulting from operations totaled ($16.0) million, or ($0.24) per share, and $15.9 million, or $0.24 per share, for the years ended September 30, 2020 and 2019, respectively. The decrease in net assets from operations for the year ended September 30, 2020 compared to the prior year was primarily due to depreciation of the portfolio primarily driven by the market disruption caused by the COVID-19 pandemic and the uncertainty surrounding its continued adverse economic impact. For more information on how the COVID-19 pandemic has affected our business and results of operations, see our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives. For more information on how the COVID-19 pandemic may impact our ability to comply with the covenants of the Credit Facilities, see the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

The annualized weighted average cost of debt for the years ended September 30, 2020 and 2019, inclusive of the fee on the undrawn commitment and amendment costs on the Credit Facilities, amortized upfront fees on SBA debentures and debt retirement and issuance costs, was 4.0% and 6.0%, respectively. As of September 30, 2020 and 2019, we had $86.7 million and $173.4 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions.

As of September 30, 2020 and 2019, we had $388.3 million and $301.6 million, respectively, in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility had a weighted average interest rate of 2.5% and 4.2%, respectively, exclusive of the fee on undrawn commitment, as of September 30, 2020 and 2019.

As of September 30, 2020 and 2019, we had cash and cash equivalents of $25.8 million and $59.5 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to take advantage of market opportunities.

Our operating activities used cash of $129.6 million for the year ended September 30, 2020, and our financing activities provided cash of $95.8 million for the same period. Our operating activities used cash primarily for our investment activities and our financing activities provided cash primarily for net borrowings under our Credit Facilities.

Our operating activities provided cash of $81.1 million for the year ended September 30, 2019, and our financing activities provided cash of $121.1 million for the same period. Our operating activities provided cash from sales and repayments on our investments and our financing activities provided cash primarily for net borrowings under our Credit Facilities as well as the issuance of our 5.5% notes due 2024, partially offset by cash used by our stock repurchase program.

DISTRIBUTIONS

During the year ended September 30, 2020 and 2019, we declared distributions of $0.60 and $0.72 per share, for total distributions of $40.2 million and $48.4 million, respectively. We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, stockholders will be notified of the portion of those distributions deemed to be a tax return of capital. Tax characteristics of all distributions will be reported to stockholders subject to information reporting on Form 1099-DIV after the end of each calendar year and in our periodic reports filed with the Securities and Exchange Commission, or the SEC.

AVAILABLE INFORMATION

The Company makes available on its website its annual report on Form 10-K filed with the SEC and stockholders may find the report on our website at www.pennantpark.com.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS O
F ASSETS AND LIABILITIES

		September 30, 2020				September 30, 2019
Assets
Investments at fair value
Non-controlled, non-affiliated investments (cost—$713,683,209 and $922,304,099, respectively)		$	735,674,666			$	936,632,099
Non-controlled, affiliated investments (cost—$77,628,920 and $77,600,816, respectively)			27,753,893				49,349,338
Controlled, affiliated investments (cost—$374,260,162 and $257,117,800, respectively)			318,342,859				233,451,359
Total of investments (cost—$1,165,572,291 and $1,257,022,715, respectively)			1,081,771,418				1,219,432,796
Cash and cash equivalents (cost—$25,801,087 and $59,546,438, respectively)			25,806,002				59,516,236
Interest receivable			5,005,715				6,226,539
Distribution receivable			1,393,716				—
Prepaid expenses and other assets			376,030				662,442
Total assets			1,114,352,881				1,285,838,013
Liabilities
Distributions payable			8,045,413				12,068,119
Payable for investments purchased			5,461,508				—
BNP Credit Facility payable, at fair value (cost—zero and $171,000,000, respectively)			—				170,145,000
Truist Credit Facility payable, at fair value (cost—$388,252,000 and $301,636,000, respectively)			368,701,972				295,245,214
2024 Notes payable, net (par—$86,250,000 and $75,000,000, respectively)			83,837,560				72,256,607
SBA debentures payable, net (par—$118,500,000 and $150,000,000, respectively)			115,772,677				146,111,055
Base management fee payable, net			4,369,637				4,641,480
Interest payable on debt			2,022,614				2,895,695
Accrued other expenses			432,648				569,175
Total liabilities			588,644,029				703,932,345
Commitments and contingencies
Net assets
Common stock, 67,045,105 and 67,045,105 shares issued and outstanding, respectively. Par value $0.001 per share and 100,000,000 shares authorized			67,045				67,045
Paid-in capital in excess of par value			787,625,031				788,192,159
Accumulated distributable loss			(261,983,224	)			(206,353,536	)
Total net assets		$	525,708,852			$	581,905,668
Total liabilities and net assets		$	1,114,352,881			$	1,285,838,013
Net asset value per share		$	7.84			$	8.68

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEM
ENTS OF OPERATIONS

		Years Ended September 30,
		2020				2019				2018
Investment income:
From non-controlled, non-affiliated investments:
Interest		$	77,453,276			$	88,060,418			$	83,255,593
Payment in kind			7,233,317				6,445,122				5,645,535
Other income			4,821,510				3,122,988				6,981,507
From non-controlled, affiliated investments:
Interest			—				—				3,013,976
Payment in kind			—				—				2,031,589
From controlled, affiliated investments:
Interest			3,387,858				9,381,881				4,499,350
Payment in kind			7,328,846				4,319,300				2,850,498
Other income			—				776,945				—
Total investment income			100,224,807				112,106,654				108,278,048
Expenses:
Base management fee			18,636,039				18,225,229				17,468,376
Performance-based incentive fee			4,579,660				5,146,696				11,492,928
Interest and expenses on debt			32,167,755				28,943,312				22,818,492
Administrative services expenses			2,075,080				2,113,895				2,086,500
Other general and administrative expenses			2,573,920				2,637,820				2,504,853
Expenses before Management Fees waiver, provision for taxes and financing costs			60,032,454				57,066,952				56,371,149
Management Fees waiver			(1,921,987	)			—				(1,427,253	)
Provision for taxes			1,200,000				1,200,000				—
Make-whole premium			—				2,162,526				—
PSLF transaction costs			2,184,128				—				—
Credit facility amendment and debt issuance costs			—				7,080,205				—
Net expenses			61,494,595				67,509,683				54,943,896
Net investment income			38,730,212				44,596,971				53,334,152
Realized and change in unrealized (loss) gain on investments and debt:
Net realized (loss) gain on:
Non-controlled, non-affiliated investments			(11,577,419	)			(51,940,526	)			34,813,876
Non-controlled and controlled, affiliated investments			—				(56,575,132	)			11,042,330
Deconsolidation loss			(9,249,833	)			—				—
Net realized (loss) gain on investments			(20,827,252	)			(108,515,658	)			45,856,206
Net change in change in unrealized (depreciation) appreciation on:
Non-controlled, non-affiliated investments			7,686,665				22,788,117				(16,751,386	)
Non-controlled and controlled, affiliated investments			(53,863,620	)			51,361,260				(38,586,621	)
Debt depreciation			12,304,242				5,694,116				3,861,111
Net change in unrealized (depreciation) appreciation on investments and debt			(33,872,713	)			79,843,493				(51,476,896	)
Net realized and change in unrealized loss from investments and debt			(54,699,965	)			(28,672,165	)			(5,620,690	)
Net (decrease) increase in net assets resulting from operations		$	(15,969,753	)		$	15,924,806			$	47,713,462
Net (decrease) increase in net assets resulting from operations per common share		$	(0.24	)		$	0.24			$	0.68
Net investment income per common share		$	0.58			$	0.66			$	0.75

ABOUT PENNANTPARK INVESTMENT CORPORATION

PennantPark Investment Corporation is a business development company which invests primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC is a leading middle market credit platform, which today has more than $3.5 billion of assets under management. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in New York and has offices in Chicago, Houston and Los Angeles.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the SEC as well as changes in the economy and risks associated with possible disruption in the Company’s operations or the economy generally due to terrorism, natural disasters or pandemics such as COVID-19. The Company undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.

CONTACT:
Aviv Efrat
PennantPark Investment Corporation
(212) 905-1000
www.pennantpark.com