Market Newsdesk

LONDON and VANCOUVER, British Columbia, Nov. 16, 2020 (GLOBE NEWSWIRE) — Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”) is pleased to announce the launch of a new website for Maginito Limited (“Maginito”) (www.maginito.com), together with a new Maginito company presentation, available for download from the website via the following link: https://maginito.com/site/assets/files/1/20201103_maginito_presentation-1.pdf

Maginito is 75.5% owned by Mkango, which is completing a Feasibility Study for the Songwe Hill rare earths project in Malawi, and 24.5% owned by Talaxis Limited (“Talaxis”), which is focused on investment in and development of technology metal opportunities.

Maginito was established to pursue downstream green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet and separation technologies.

Maginito’s strategy is underpinned by offtake rights for sustainably sourced primary and secondary raw materials, and geared to accelerating growth in the electric vehicle sector, wind power generation and other industries driven by decarbonisation of the economy.

In January 2020, Maginito acquired a 25% interest in UK based NdFeB magnet recycler, HyProMag Limited (“HyProMag”), with an option to increase to 49%. HyProMag is focused on short loop NdFeB magnet recycling using a hydrogen-based technology (HPMS) developed at the Magnetic Materials Group (MMG) within the University of Birmingham. HyProMag is a partner in the Innovate UK grant funded project, “Rare-Earth Recycling for E-Machines” (“RaRE”) together with University of Birmingham, Advanced Electric Machines Research Limited, Bentley Motors Limited, Intelligent Lifecycle Solutions Limited and Unipart Powertrain Applications Limited, which will for the first time establish an end to end supply chain to incorporate recycled rare earth magnets into electric vehicles.

Maginito is currently evaluating a number of other complementary downstream technology opportunities.

About
HyProMag

The Magnetic Materials Group within the School of Metallurgy and Materials at the University of Birmingham has been active in the field of rare earth alloys and processing of permanent magnets using hydrogen for over 40 years. Originated by Professor Rex Harris, the hydrogen decrepitation method, which is used to reduce NdFeB alloys to a powder, is now ubiquitously employed in worldwide magnet processing.

In a further development, the MMG patented a process for extracting and demagnetising NdFeB powders from magnets embedded in redundant equipment using hydrogen in a process called HPMS (Hydrogen Processing of Magnet Scrap). This patent and related intellectual property is at the core of HyProMag’s business. The MMG continues to develop new research and development opportunities, cooperates widely in Europe, including a major EU project, SusMagPro, which is also focused on recycling of magnets. The directors of HyProMag all provide their expertise to the MMG and there is potential for HyProMag to gain possible future access to new intellectual property.

HyProMag is also a partner in the Innovate UK grant funded project, “Rare-Earth Recycling for E-Machines” (“RaRE”) together with University of Birmingham, Advanced Electric Machines Research Limited, Bentley Motors Limited, Intelligent Lifecycle Solutions Limited and Unipart Powertrain Applications Limited.

RaRE will for the first time establish an end to end supply chain to incorporate recycled rare earth magnets into electric vehicles, whereby recycled magnets will be built into an ancillary electric motor to ultimately support the development of a commercial ancillary motor suite.

HyProMag’s strategy is to establish a recycling facility for NdFeB magnets at Tyseley in Birmingham to provide a sustainable solution for the supply of NdFeB magnets and alloy powders for a wide range of markets including, for example, automotive and electronics. A number of product options are being evaluated including hydrogen decrepitated (HD) demagnetised powders suitable for magnet producers, alloy ingot remelted from HD powders suitable for alloy feed or magnet production, anisotropic alloy powders (HDDR) for bonded magnets and sintered NdFeB magnets as required by the RaRE project for automotive applications.

The founding directors of HyProMag, comprising Professor Emeritus Rex Harris, former Head of the MMG, Professor Allan Walton, current Head of the MMG, and two Honorary Fellows, Dr John Speight and Mr David Kennedy, are leading world experts in the field of rare earth magnetic materials, alloys and hydrogen technology, and have significant industry experience. Following the investment by Maginito, HyProMag appointed William Dawes, a Director of Maginito and Chief Executive Officer of Mkango, to the Board of HyProMag.

For more information, please visit https://hypromag.com/ 

A
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Mkango’s primary business is exploration for rare earth elements and associated minerals in the Republic of Malawi, a country whose hospitable people have earned it a reputation as “the warm heart of Africa”. The Company holds interests in four exclusive prospecting licenses in Malawi: the Phalombe licence, the Thambani licence, the Chimimbe Hill licence and the Mchinji licence.

The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which included a 10,900 metre drilling programme and an updated mineral resource estimate, announced in February 2019. In March 2019, the Company announced receipt of a £7 million (C$12.3 million) investment from Talaxis to fund completion of the Feasibility Study. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development including funding the equity component thereof.

The main exploration targets in Mkango’s remaining three 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon, in the Chimimbe Hill licence, nickel and cobalt, and in the Mchinji licence, rutile, nickel, cobalt, base metals and graphite. Mkango recently announced commencement of an extensive exploration program following a new rutile discovery within the Mchinji licence.

Mkango also holds a 75.5% interest in Maginito with the balance owned by Talaxis. Maginito is focused on downstream opportunities relating to the rare earths supply chain, in particular, recycling and other innovative technologies for the production of neodymium alloy powders and magnets used in electric vehicles, wind turbines and other industries geared to decarbonisation of the economy.

For more information, please visit www.mkango.ca. 

About
Talaxis

Founded in 2016, Talaxis is a wholly-owned subsidiary of Noble Group Holdings Limited and invests in and develops projects that are related to technology metals, with a special focus on rare earth elements. Talaxis focuses on battery and electric vehicle materials such as nickel, lithium, graphite and vanadium. Talaxis has supply chain partners in the upstream and midstream segments, and also focuses on research and development solutions for industrial consumers in the downstream segment. Talaxis prioritises sustainable ventures with a strong emphasis on corporate social responsibility. These include projects that contribute to the decarbonisation of the economy and that are aligned with the United Nations Sustainable Development Goals.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements (within the meaning of that term under applicable securities laws) with respect to Mkango, its business and the Project. Generally, forward looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negative connotations thereof. Forward looking statements in this news release include statements with respect to the global market for rare earth metals, completion of the feasibility study for Songwe, investments by Maginito in Hypromag and of the plans and results with respect to Maginito and HyProMag, as well as plans for Tyseley. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting the foregoing, governmental action relating to COVID-19, COVID-19 and other market effects on global demand for the metals and associated downstream products for which Mkango is exploring, researching and developing, the positive results of a feasibility study on the Project and delays in obtaining financing or governmental or stock exchange approvals. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes		Alexander Lemon
Chief Executive Officer		President
[email protected]		[email protected]
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Tim Blythe
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood
UK: +44 20 7186 9004

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. 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.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of the Company in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 (“MAR”). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.

AIM & TSX:  “TGL” & NASDAQ:  “TGA”

CALGARY, Alberta, Nov. 16, 2020 (GLOBE NEWSWIRE) — TransGlobe Energy Corporation (“TransGlobe” or the “Company”) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2020. All dollar values are expressed in United States dollars unless otherwise stated. TransGlobe’s Condensed Consolidated Interim Financial Statements together with the notes related thereto, as well as TransGlobe’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2020 and 2019, are available on TransGlobe’s website at www.trans-globe.com.

HIGHLIGHTS
:

• TransGlobe is focused on conserving cash in the current low commodity price environment. The Company ended the third quarter with positive working capital of $12.7 million, including cash and cash equivalents of $27.1 million;
• Third quarter production averaged 12,044 boe/d (Egypt 9,812 bbls/d, Canada 2,232 boe/d), a decrease of 2,256 boe/d (16%) from the previous quarter primarily due to deferred well interventions in Egypt during low oil prices and natural declines;
• Production in October averaged ~12,162 boe/d (Egypt ~10,303 bbls/d, Canada ~1,859 boe/d), an increase of 1% from Q3-2020, and below revised budget expectations primarily due to deferred well interventions in Egypt and repairs on a third-party pipeline in Canada that required the Company to shut-in certain wells for two weeks in October;
• Sales averaged 10,680 boe/d including 259.2 Mbbls sold to EGPC for net proceeds of $10.2 million in Q3-2020. Average realized price for Q3-2020 sales of $33.63/boe; Q3-2020 average realized price on Egyptian sales of $37.15/bbl and Canadian sales of $20.80/boe;
• Funds flow from operations of $0.3 million ($0.00 per share) in the quarter;
• Third quarter net loss of $6.0 million ($0.08 per share), inclusive of a $0.3 million unrealized loss on derivative commodity contracts;
• Contracted a workover rig and began well interventions in Egypt in September 2020 at West Bakr;
• Consistent with the revised 2020 budget previously disclosed, there has been no drilling activity in Canada or Egypt during Q3-2020;
• Business continuity plans remain effective across our locations in response to COVID-19 with no health and safety impacts or disruption to production;
• Despite restrictions on travel, management concluded its negotiations with EGPC to amend, extend and consolidate the Company’s Eastern Desert concession agreements during the quarter. At this time, it is the Company’s belief that EGPC approval will occur in the near term; and
• TransGlobe continues to actively evaluate M&A opportunities, with a view to not only better position the Company to weather the current downturn but also rebound strongly once commodity prices begin to strengthen.

FINANCIAL AND OPERATING RESULTS

(US$000s, except per share, price, volume amounts and % change)

	Three Months Ended September 30									Nine Months Ended September 30
Financial	2020			2019			% Change			2020			2019			% Change
Petroleum and natural gas sales		33,046			64,388			(49	)		137,782			214,728			(36	)
Petroleum and natural gas sales, net of royalties		16,740			31,200			(46	)		81,366			111,623			(27	)
Realized derivative gain (loss) on commodity contracts		662			(112	)		691			6,807			(1,041	)		754
Unrealized derivative (loss) gain on commodity contracts		(267	)		2,616			(110	)		761			(385	)		298
Production and operating expense		11,473			11,564			(1	)		45,136			35,507			27
Selling costs		54			76			(29	)		1,103			649			70
General and administrative expense		2,542			4,102			(38	)		8,397			12,743			(34	)
Depletion, depreciation and amortization expense		5,493			8,173			(33	)		23,402			26,184			(11	)
Income tax expense		3,092			6,416			(52	)		10,122			20,095			(50	)
Cash flow (used in) generated by operating activities		(3,349	)		12,042			(128	)		17,529			21,096			(17	)
Funds flow from operations1		323			9,429			(97	)		23,241			43,700			(47	)
Basic per share		0.00			0.13						0.32			0.60
Diluted per share		0.00			0.13						0.32			0.60
Net (loss) earnings		(5,957	)		2,967			(301	)		(74,542	)		4,207			(1,872	)
Basic per share		(0.08	)		0.04						(1.03	)		0.06
Diluted per share		(0.08	)		0.04						(1.03	)		0.06
Capital expenditures		437			9,292			(95	)		7,243			25,936			(72	)
Dividends declared		–			2,539			(100	)		–			5,078			(100	)
Dividends declared per share		–			0.035						–			0.070
Working capital		12,708			47,150			(73	)		12,708			47,150			(73	)
Long-term debt, including current portion		25,946			41,726			(38	)		25,946			41,726			(38	)
Common shares outstanding
Basic (weighted average)		72,542			72,542			–			72,542			72,504			–
Diluted (weighted average)		72,542			72,542			–			72,542			72,508			–
Total assets		205,583			312,654			(34	)		205,583			312,654			(34	)
Operating
Average production volumes (boe/d)		12,044			15,943			(24	)		13,774			16,269			(15	)
Average sales volumes (boe/d)		10,680			14,122			(24	)		15,344			15,044			2
Inventory (Mbbls)		534.2			902.6			(41	)		534.2			902.6			(41	)
Average realized sales price ($/boe)		33.63			49.56			(32	)		32.77			52.28			(37	)
Production and operating expenses ($/boe)		11.68			8.90			31			10.74			8.65			24
1 Funds flow from operations (before finance costs) is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to measures used by other companies. See “Non-GAAP Financial Measures”

	2020										2019
Average reference prices and exchange rates	Q-3				Q-2			Q-1			Q-4			Q-3
Crude oil
Dated Brent average oil price ($/bbl)		42.96			29.34			50.44			63.41			61.93
Edmonton Sweet index ($/bbl)		37.35			21.71			38.59			51.56			51.76
Natural gas
AECO ($/MMBtu)		1.69			1.41			1.43			1.88			1.04
US/Canadian Dollar average exchange rate		1.33			1.39			1.35			1.32			1.32

CORPORATE SUMMARY

TransGlobe Energy Corporation (“TransGlobe” or the “Company”) produced an average of 12,044 barrels of oil equivalent per day (“boe/d”) during the third quarter of 2020. Egypt production was 9,812 barrels of oil per day (“bbls/d”) and Canada production was 2,232 boe/d. Production for the quarter was below revised full year 2020 guidance of 13,300 to 13,800 boe/d due to deferred well interventions in Egypt during low oil prices and natural declines. It is expected that, with well interventions performed in September and Q4-2020, TransGlobe will be within full year 2020 guidance on an annual basis.

TransGlobe’s Egyptian crude oil is sold at a quality discount to Dated Brent. The Company received an average price of $37.15 per barrel in Egypt during the quarter. Gharib Blend has benefited from a relative increase in demand for heavy oil in the past nine months and the resultant decrease in the differential to Brent. For the year to date the Gharib Blend differential to Brent has been ~$4.50/bbl. In Canada, the Company received an average of $36.99 per barrel of oil, $15.65 per barrel of NGL and $1.80 per thousand cubic feet (“Mcf”) of natural gas during the quarter.

During Q3-2020, the Company had funds flow from operations of $0.3 million and ended the quarter with positive working capital of $12.7 million, including cash and cash equivalents of $27.1 million. The Company had a net loss in the quarter of $6.0 million, inclusive of a $0.3 million unrealized derivative loss on commodity contracts which represents a fair value adjustment on the Company’s hedging contracts as at September 30, 2020.

In Egypt, the Company sold 259.2 thousand barrels (“Mbbls”) of entitlement crude oil to EGPC during the quarter, and had 534.2 Mbbls of entitlement crude oil inventory at September 30, 2020. The increase in inventoried crude oil is attributed to a decrease in sales volumes, offset by a decrease in production in Q3-2020. Subsequent to the quarter, TransGlobe completed a ~452 Mbbls cargo lifting of Egypt entitlement crude oil, with proceeds expected in December. In Canada, the Company sold the Q2-2020 ending inventory balance of 6.3 Mbbls of Canadian light crude oil in July 2020; all Canadian production was sold during the quarter.

In Egypt, the Company contracted a workover rig to perform well interventions at West Bakr beginning in September 2020, and continuing into the fourth quarter. Consistent with the Company’s revised 2020 budget, there has been no drilling activity in Canada or Egypt during the third quarter.

Despite restrictions on travel, management concluded its negotiations with EGPC to amend, extend and consolidate the Company’s Eastern Desert concession agreements during the quarter. At this time, it is the Company’s belief that EGPC approval will occur in the near term. Following such approval, the merged concession will require parliamentary ratification. The Company will provide timely updates as developments unfold.

The Company remains forward looking and prepared to use its operational control to take advantage of any sustained upward movement in oil price. TransGlobe continues to be vigilant in its search for attractive M&A opportunities while steadfastly retaining its focus on shareholder value creation.

Crisis Mitigation Measures

TransGlobe is focused on conserving cash in the current low commodity price environment. The Company has successfully implemented the previously announced 80% reduction in the 2020 capital program and continues to monitor general and administrative (“G&A”) cost reductions. The Company estimates that G&A reduction efforts will reduce go-forward monthly G&A by approximately 35%.

The Company remains in constant communication with its lenders (Mercuria Energy Trading SA and ATB Financial) and does not anticipate deviating from its pre-crisis planned debt reduction schedule. The Company repaid C$2.0 million ($1.5 million) on the revolving Canadian reserves-based lending facility with ATB Financial in September 2020, leaving C$8.2 million ($6.2 million) drawn and outstanding of a revolving balance of up to C$15.0 million ($11.3 million).

Business continuity plans have been implemented in all our locations and operations continue as normal. The Company had three reported cases of COVID-19 in its joint venture in Egypt during Q2-2020, which were managed according to established Company, local and national quarantine guidelines. All three have recovered and returned to work with no onward infection spread reported.

LIQUIDITY AND CAPITAL RESOURCES

Funding for the Company’s capital expenditures is provided by cash flow from operations and cash on hand. The Company is funding its 2020 development program through the use of working capital and cash flow from operations. The Company also expects to pay down debt and explore business development opportunities with its working capital. Fluctuations in commodity prices, product demand, foreign exchange rates, interest rates and various other risks may impact capital resources and capital expenditures.

Working capital is the amount by which current assets exceed current liabilities. As at September 30, 2020, the Company had a working capital surplus of $12.7 million (December 31, 2019 – $32.2 million). The decrease in working capital is primarily due to the $20 million outstanding balance of the Mercuria prepayment agreement being reclassified as current at quarter end, a decrease in cash resulting from payments on accounts payable in the period, a decrease in crude oil inventory due to increased sales to EGPC in 2020, partially offset by a corresponding increase in accounts receivable and decrease in accounts payable.

As at September 30, 2020, the Company’s cash equivalents balance consisted of short-term deposits with an original term to maturity at purchase of one month or less. All of the Company’s cash and cash equivalents are on deposit with high credit-quality financial institutions.

Over the past 10 years, the Company has experienced delays in the collection of accounts receivable from EGPC. The length of delay peaked in 2013, returned to historical delays of up to nine months in 2017, and has since fluctuated within an acceptable range. As at September 30, 2020, amounts owing from EGPC were $8.0 million. The Company considers there to be minimal credit risk associated with amounts receivable from EGPC.

In Egypt, the Company sold 259.2 Mbbls of crude oil to EGPC in Q3-2020 for net proceeds of $10.2 million. During the third quarter of 2020, the Company collected $16.4 million of accounts receivable from EGPC, an additional $1.0 million has been collected subsequent to the quarter. The Company incurs a 30-day collection cycle on sales to third-party international buyers. Depending on the Company’s assessment of the credit of crude oil purchasers, they may be required to post irrevocable letters of credit to support the sales prior to the cargo lifting. As at September 30, 2020, crude oil held as inventory was 534.2 Mbbls.

As at September 30, 2020, the Company had $86.0 million of revolving credit facilities with $26.2 million drawn and $59.8 million available. The Company has a prepayment agreement with Mercuria that allows for a revolving balance of up to $75.0 million, of which $20.0 million was drawn and outstanding as at September 30, 2020. During the nine months ended September 30, 2020, the Company repaid $10.0 million on this prepayment facility. The Company also has a revolving Canadian reserves-based lending facility with ATB that was renewed and reduced as at June 30, 2020 from C$25.0 million ($18.4 million) to C$15.0 million ($11.0 million), of which C$8.2 million ($6.2 million) was drawn and outstanding. The reduction in the ATB facility is a result of lower forecasted commodity prices and the associated impact on asset value. During the nine months ended September 30, 2020, the Company had drawings of C$0.4 million ($0.3 million) and repayments of C$2.0 million ($1.5 million) on this facility.

OPERATIONS UPDATE

ARAB REPUBLIC OF EGYPT

EASTERN DESERT

West
Gharib
, West Bakr, and North West
Gharib
(100% working interest, operated)

Operations and Exploration

In Egypt, the Company contracted a workover rig to perform well interventions at West Bakr beginning in September 2020, and continuing into the fourth quarter.

Production

Production averaged 9,635 bbls/d during the quarter, a decrease of 18% (2,122 bbls/d) from the previous quarter. The decrease was primarily due to deferred well interventions in Egypt during low oil prices and natural declines. With the well interventions that began in September 2020, it is expected that production will be in-line with full year 2020 guidance, including South Ghazalat, of 11,200 to 11,600 bbls/d.

Production in October 2020 averaged ~10,161 bbls/d.

Sales

The Company sold 253.1 Mbbls of inventoried entitlement crude oil to EGPC during the quarter.

Quarterly Eastern Desert Production ( bbls /d)	2020									2019
	Q-3			Q-2			Q-1			Q-4
Gross production rate1		9,635			11,757			12,343			12,831
TransGlobe production (inventoried) sold		(1,432	)		(1,761	)		7,937			(674	)
Total sales		8,203			9,996			20,280			12,157
Government share (royalties and tax)		5,452			6,648			6,977			7,250
TransGlobe sales (after royalties and tax)2		2,751			3,348			13,303			4,907
Total sales		8,203			9,996			20,280			12,157

1	Quarterly production by concession (bbls/d):
	West Gharib – 2,808 (Q3-2020), 3,453 (Q2-2020), 3,664 (Q1-2020), and 3,857 (Q4-2019)
	West Bakr – 6,498 (Q3-2020), 7,935 (Q2-2020), 8,277 (Q1-2020), and 8,489 (Q4-2019)
	North West Gharib – 329 (Q3-2020), 369 (Q2-2020), 402 (Q1-2020), and 485 (Q4-2019)
2	Under the terms of the Production Sharing Concession Agreements, royalties and taxes are paid out of the government’s share of production sharing oil.

WESTERN DESERT

South
Ghazalat
(100% working interest, operated)

Operations and Exploration

The SGZ-6x well continues to produce from the Upper Bahariya reservoir at a field estimated rate of ~140 bbls/d light and medium crude to evaluate the zone, restricted to the optimal operation of the early production facility.

Production

Production averaged 177 bbls/d during the quarter, a decrease of 24% (56 bbls/d) from the previous quarter.

Production in October 2020 averaged ~142 bbls/d.

Sales

The Company sold all of its entitlement crude oil production of 6.1 Mbbls in the quarter to EGPC.

CANADA

Operations and Exploration

Consistent with the Company’s revised 2020 budget, there has been no drilling or completion activity during Q3-2020.

Production

In Canada, production averaged 2,232 boe/d during the quarter, a decrease of 78 boe/d (3%) from the previous quarter and slightly above revised full year 2020 guidance of 2,100 to 2,200 boe/d. This marginal decrease was primarily due to natural declines.

The Company sold the Q2-2020 ending inventory balance of 6.3 Mbbls of Canadian light crude oil in July 2020; all Canadian production was sold during the quarter.

Production in October 2020 averaged ~1,859 boe/d with ~606 bbls/d of oil. The decrease in production in October is primarily due to necessary repairs being performed on a third-party pipeline that required the Company to shut-in certain wells for approximately two weeks.  

Quarterly Canada Production	2020									2019
	Q-3			Q-2			Q-1			Q-4
Canada crude oil (bbls/d)		661			706			860			908
Canada NGLs (bbls/d)		798			826			761			735
Canada natural gas (Mcf/d)		4,633			4,665			4,996			5,331
Total production (boe/d)		2,232			2,310			2,453			2,531

Condensed Consolidated Interim Statements of (Loss) Income and Comprehensive (Loss) Income

(Unaudited – Expressed in thousands of U.S. Dollars, except per share amounts)

			Three Months Ended September 30							Nine Months Ended September 30
			2020				2019			2020			2019
	REVENUE
		Petroleum and natural gas sales, net of royalties		16,740			31,200			81,366			111,623
		Finance revenue		9			85			101			401
		Other revenue		106			–			328			–
				16,855			31,285			81,795			112,024
	EXPENSES
		Production and operating		11,473			11,564			45,136			35,507
		Selling costs		54			76			1,103			649
		General and administrative		2,542			4,102			8,397			12,743
		Foreign exchange (gain) loss		(65	)		(67	)		100			(122	)
		Finance costs		552			1,030			1,956			3,311
		Depletion, depreciation and amortization		5,493			8,173			23,402			26,184
		Asset retirement obligation accretion		66			51			194			156
		(Gain) loss on financial instruments		(395	)		(2,504	)		(7,568	)		1,426
		Impairment loss		–			(409	)		73,495			7,982
		Gain on disposition of assets		–			(114	)		–			(114	)
				19,720			21,902			146,215			87,722
	(Loss) earnings before income taxes			(2,865	)		9,383			(64,420	)		24,302
	Income tax expense – current			3,092			6,416			10,122			20,095
	NET (LOSS) EARNINGS			(5,957	)		2,967			(74,542	)		4,207
	OTHER COMPREHENSIVE INCOME (LOSS)
		Currency translation adjustments		1,188			(410	)		(1,371	)		1,250
	COMPREHENSIVE (LOSS) INCOME			(4,769	)		2,557			(75,913	)		5,457
	Net (loss) earnings per share
		Basic		(0.08	)		0.04			(1.03	)		0.06
		Diluted		(0.08	)		0.04			(1.03	)		0.06

Condensed Consolidated Interim Balance Sheets

(Unaudited – Expressed in thousands of U.S. Dollars)

			As at			As at
			September 30, 2020			December 31, 2019
	ASSETS
	Current
		Cash and cash equivalents		27,065		33,251
		Accounts receivable		11,869		10,681
		Derivative commodity contracts		543		–
		Prepaids and other		3,247		4,338
		Product inventory		12,415		17,516
				55,139		65,786
	Non-Current
		Intangible exploration and evaluation assets		584		33,706
		Property and equipment
		Petroleum and natural gas assets		142,535		196,150
		Other		3,100		4,296
		Deferred taxes		4,225		8,387
				205,583		308,325
	LIABILITIES
	Current
		Accounts payable and accrued liabilities		21,030		32,156
		Derivative commodity contracts		–		217
		Current portion of lease obligations		1,606		1,219
		Current portion of long-term debt		19,795		–
				42,431		33,592
	Non-Current
		Long-term debt		6,151		37,041
		Asset retirement obligations		12,833		13,612
		Other long-term liabilities		161		614
		Lease obligations		865		589
		Deferred taxes		4,225		8,387
				66,666		93,835
	SHAREHOLDERS’ EQUITY
		Share capital		152,805		152,805
		Accumulated other comprehensive (loss) income		(237	)	1,134
		Contributed surplus		25,013		24,673
		(Deficit) Retained earnings		(38,664	)	35,878
				138,917		214,490
				205,583		308,325

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

(Unaudited – Expressed in thousands of U.S. Dollars)

			Nine Months Ended September 30
			2020			2019
	Share Capital
		Balance, beginning of period		152,805		152,084
		Stock options exercised		–		547
		Transfer from contributed surplus on exercise of options		–		174
		Balance, end of period		152,805		152,805
	Accumulated Other Comprehensive (Loss) Income
		Balance, beginning of period		1,134		(939	)
		Currency translation adjustment		(1,371	)	1,250
		Balance, end of period		(237	)	311
	Contributed Surplus
		Balance, beginning of period		24,673		24,195
		Share-based compensation expense		340		494
		Transfer to share capital on exercise of options		–		(174	)
		Balance, end of period		25,013		24,515
	(Deficit) Retained Earnings
		Balance, beginning of period		35,878		44,951
		Net (loss) earnings		(74,542	)	4,207
		Dividends		–		(5,078	)
		Balance, end of period		(38,664	)	44,080

        

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited – Expressed in thousands of US Dollars)

				Three Months Ended September 30					Nine Months Ended September 30
				2020			2019		2020		2019
	OPERATING
		Net (loss) earnings			(5,957	)	2,967		(74,542	)	4,207
		Adjustments for:
			Depletion, depreciation and amortization		5,493		8,173		23,402		26,184
			Asset retirement obligation accretion		66		51		194		156
			Impairment loss		–		(409	)	73,495		7,982
			Share-based compensation		(72	)	406		(489	)	1,749
			Finance costs		552		1,030		1,956		3,311
			Unrealized loss (gain) on financial instruments		267		(2,616	)	(761	)	385
			Unrealized (gain) loss on foreign currency translation		(26	)	(49	)	6		(119	)
			Gain on asset disposition		–		(114	)	–		(114	)
		Asset retirement obligations settled			–		(10	)	(20	)	(41	)
		Changes in non-cash working capital			(3,672	)	2,613		(5,712	)	(22,604	)
	Net cash (used in) generated by operating activities				(3,349	)	12,042		17,529		21,096
	INVESTING
		Additions to intangible exploration and evaluation assets			–		(56	)	(337	)	(844	)
		Additions to petroleum and natural gas assets			(399	)	(9,197	)	(6,721	)	(24,621	)
		Additions to other assets			(38	)	(39	)	(185	)	(471	)
		Proceeds from asset dispositions			–		114		–		114
		Changes in non-cash working capital			(1,883	)	(2,177	)	(2,545	)	(2,478	)
	Net cash used in investing activities				(2,320	)	(11,355	)	(9,788	)	(28,300	)
	FINANCING
		Issue of common shares for cash			–		–		–		547
		Interest paid			(396	)	(893	)	(1,526	)	(2,874	)
		Increase in long-term debt			114		114		282		370
		Payments on lease obligations			(366	)	(540	)	(1,141	)	(1,430	)
		Repayments of long-term debt			(1,504	)	(6,523	)	(11,504	)	(11,523	)
		Dividends paid			–		(2,539	)	–		(5,078	)
		Changes in non-cash working capital			–		–		–		(200	)
	Net cash used in financing activities				(2,152	)	(10,381	)	(13,889	)	(20,188	)
	Currency translation differences relating to cash and cash equivalents				49		13		(38	)	131
	NET DECREASE IN CASH AND CASH EQUIVALENTS				(7,772	)	(9,681	)	(6,186	)	(27,261	)
	CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				34,837		34,125		33,251		51,705
	CASH AND CASH EQUIVALENTS, END OF PERIOD				27,065		24,444		27,065		24,444

Ad
visory on Forward-Looking Statements

Certain statements included in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking statements or information
typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “may”, “will”, “would” or similar words suggesting future outcomes or statements regarding an outlook. In particular, forward-looking information and statements contained in this document include, but are not limited to, the plans for the Company’s 2020 Canadian drilling program and the details thereof; the Company’s expectation relating to the performance of the South
Harmattan
Cardium
prospect; and the expected benefits to the Company of consolidating, amending and extending the Company’s Eastern Desert PSCs and other matters.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Many factors could cause
TransGlobe’s
actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransGlobe.

In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, anticipated production volumes; the timing of drilling wells and mobilizing drilling rigs; the number of wells to be drilled; the Company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts and will conduct its business; future capital expenditures to be made by the Company; future sources of funding for the Company’s capital programs; geological and engineering estimates in respect of the Company’s reserves and resources; the geography of the areas in which the Company is conducting exploration and development activities; current commodity prices and royalty regimes; availability of skilled
labour
; future exchange rates; the price of oil; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future operating costs; uninterrupted access to areas of
TransGlobe’s
operations and infrastructure; recoverability of reserves and future production rates; that TransGlobe will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that
TransGlobe’s
conduct and results of operations will be consistent with its expectations; that TransGlobe will have the ability to develop its properties in the manner currently contemplated; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of
TransGlobe’s
reserves and resource volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; and other matters.

Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward-looking statements or information include, among other things, operating and/or drilling costs are higher than anticipated; unforeseen changes in the rate of production from
TransGlobe’s
oil and gas properties; changes in price of crude oil and natural gas; adverse technical factors associated with exploration, development, production or transportation of
TransGlobe’s
crude oil reserves;
the potential impacts of COVID-19 to the Company’s business, operating results, cash flows and/or financial condition
;
changes or disruptions in the political or fiscal regimes in
TransGlobe’s
areas of activity; changes in tax, energy or other laws or regulations; changes in significant capital expenditures; delays or disruptions in production due to shortages of skilled manpower equipment or materials; economic fluctuations; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; ability to access sufficient capital from internal and external sources; failure to negotiate the terms of contracts with counterparties; failure of counterparties to perform under the terms of their contracts; and other factors beyond the Company’s control. Readers are cautioned that the foregoing list of factors is not exhaustive. Please consult
TransGlobe’s
public filings at www.sedar.com and www.sec.goedgar.shtml for further, more detailed information concerning these matters, including additional risks related to
TransGlobe’s
business.

The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Oil and Gas Advisories

Mr. Ron Hornseth, B.Sc., General Manager – Canada for TransGlobe Energy Corporation, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this report. Mr. Hornseth is a professional engineer who obtained a Bachelor of Science in Mechanical Engineering from the University of Alberta. He is a member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”) and the Society of Petroleum Engineers (“SPE”) and has over 20 years’ experience in oil and gas.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6
mcf
: 1
bbl
) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

The following abbreviations used in this press release have the meanings set forth below:

b bl	barrels
b bls /d	barrels per day
M bbls	t housand barrels
b oe	barrel of oil equivalent
b oe /d	barrels of oil equivalent per day
MMB tu	One million British thermal units
M cf	thousand cubic feet
M cf /d	thousand cubic feet per day
NGL	Natural Gas Liquids

Production Disclosure

Production Summary (WI before royalties and taxes):
	Oct – 20	Q3 – 20	Q2 – 20	Q1 – 20	Q4 – 19
Egypt ( bbls /d )	10,3 03	9,812	11,990	12,544	12,831
Eastern Desert of Egypt ( bbls /d )	10,161	9,635	11,757	12,343	12,831
Heavy Crude ( bbl s /d)	9,559	9,066	11,001	11,54 8	11,984
Light and Medium Crude ( bbl s /d)	60 2	569	756	79 5	847
Western Desert of Egypt ( bbls /d )	1 42	177	233	201	–
Light and Medium Crude ( bbl s /d)	1 42	177	233	201	–
Canada ( boe /d )	1,859	2,232	2,310	2,453	2,531
Light and Medium Crude ( bbl s /d)	606	661	706	860	908
Natural Gas ( M cf /d)	3 ,774	4,633	4,665	4,996	5,334
Associated Natural Gas Liquids ( bbl s /d)	6 24	798	826	761	735
Total ( boe /d )	12,162	12,044	14,300	14,997	15,362

Production Guidance
	Low	High	Mid-Point
Egypt ( bbls /d )	11, 2 00	11,6 00	11, 4 00
Heavy Crude ( bbl s /d)	10,304	10,672	10,488
Light and Medium Crude ( bbl s /d)	896	928	912
Canada ( boe / d)	2, 1 00	2, 2 00	2,1 5 0
Light and Medium Crude ( bbl s /d)	646	677	661
Natural Gas ( M cf /d)	4,294	4,499	4,397
Associated Natural Gas Liquids ( bbl s /d)	738	774	756
Total ( boe /d )	13,300	1 3,8 00	13, 55 0

For further information, please contact:
TransGlobe Energy	Via FTI Consulting
Randy Neely, President and Chief Executive Officer
Eddie Ok, Chief Financial Officer
Canaccord Genuity (Nomad & Sole Broker)	+44 (0) 20 7523 8000
Henry Fitzgerald-O’Connor
James Asensio
FTI Consulting (Financial PR)	+44 (0) 20 3727 1000
Ben Brewerton	[email protected]
Genevieve Ryan
Tailwind Associates (Investor Relations)
Darren Engels	[email protected] http://www.tailwindassociates.ca +1 403.618.8035 [email protected] http://www.trans-globe.com +1 403.264.9888

Boston, Nov. 16, 2020 (GLOBE NEWSWIRE) — Gordon Brothers, the global advisory, restructuring and investment firm, scales up its special situations lending and investment platform through the addition of half a dozen key industry veterans from leading lending institutions across the globe. In conjunction with the expanding team and enhanced platform, Gordon Brothers sold its minority interest in Gordon Brothers Finance Company (“GBFC”), a private commercial finance company on November 3. 

Gordon Brothers special situations lending and investing solutions will continue to provide both short- and long-term transition capital to clients undergoing transformation. Additionally, Gordon Brothers invests directly in brands, real estate, inventory, receivables, machinery, equipment and other assets both together and individually to provide broader solutions beyond the firm’s market-leading disposition and appraisal services.  

“Gordon Brothers partners with management teams, private equity, strategic buyers and asset-based lenders, who often invite us into non-standard transactions when the combination of our expertise and additional capital is required,” said Ken Frieze, CEO of Gordon Brothers.

Gordon Brothers has a unique approach to risk analysis and a deep understanding of asset value and business operations, allowing the firm to design creative liquidity solutions for companies across the globe.

“This is an exciting time for Gordon Brothers,” said Frieze. “Using our core asset expertise and significant financial resources, we will continue to provide transformational capital that expands our clients’ options by minimizing risk and maximizing opportunity at all points in the business cycle.”

Gordon Brothers provides capital to companies in special situations on a fully collateralized basis. The firm’s tailor-made solutions –ranging from asset acquisition to financing to investments– provide clients with additional capital alongside traditional debt and equity.

Since 2014, Gordon Brothers has had an exclusive, strategic partnership with GBFC focused on asset-based loans for middle-market companies. As a result of the sale the exclusive partnership has terminated, and Gordon Brothers will expand special situations investments and other financing solutions for customers directly under the Gordon Brothers name.

 

About Gordon Brothers

Since 1903, Gordon Brothers (www.gordonbrothers.com) has helped lenders, operating companies, advisors and investors move forward through change. The firm brings a powerful combination of expertise and capital. With services in valuations, dispositions, operations and investments, Gordon Brothers provides customized solutions on an integrated or standalone basis for clients at all points in the business lifecycle. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers works across industries and around the world to put assets to their highest and best use. Gordon Brothers conducts more than $70 billion worth of dispositions, appraisals and investments annually. Gordon Brothers is headquartered in Boston, with 25 offices across five continents.

Nicole Trice
Gordon Brothers
617-422-6569
[email protected]

 

• Over 50% reduction of pre-term delivery within 48hrs of treatment in singleton pregnancy
• Maternal, fetal and neonatal safety comparable to placebo
• Data supports advancement of ebopiprant to Phase 2b dose range finding

             

Geneva, Switzerland and Boston, MA – 16 November 2020 – ObsEva SA (NASDAQ: OBSV / SIX: OBSN), a clinical-stage biopharmaceutical company developing and commercializing novel therapies to improve women’s reproductive health today announced the positive topline results of PROLONG, the Phase 2a proof-of-concept, randomized, double-blind, placebo-controlled trial of ebopiprant in preterm labor.  Ebopiprant is a new, first in class, orally active, selective prostaglandin F_2α (PGF_2α), receptor antagonist designed to treat preterm labor by reducing uterine contractions and cervical maturation while avoiding the adverse neonatal side-effects associated with non-specific prostaglandin inhibitors such as Indomethacin.

One of the key objectives in reducing the mortality and morbidity associated with preterm birth is delaying delivery for at least 48 hours thereby allowing for the administration and the full effect of critical drugs that induce lung maturation and neural protection for the neonate

“Assessing the therapeutic potential of a new chemical entity in pregnant women is a major challenge and I would like to thank the participating patients and congratulate our team for successfully completing this unique study. Today, no approved options are available in the United States for treatment of women with preterm labor. The encouraging PROLONG results offer new hope for these women and their babies. Furthermore, the results support the potential for improving the standard of care in Europe and Asia.” said Ernest Loumaye, co-founder and Chief Executive Officer of ObsEva. “Building on the strong effect seen at 48 hours, the Phase 2b dose range finding, including testing of higher doses, will allow us to more fully define this product’s potential and the longer-term benefits for babies.”

In this study, 113 women with spontaneous preterm labor (gestational age between 24 and 34 weeks) were randomized and treated with atosiban (ex-U.S. standard of care) plus ebopiprant or atosiban plus placebo for 7 days. There were 83 (73%) women with singleton pregnancies and 30 (27%) with twin pregnancies. One hundred and forty-one neonates were born.

In the PROLONG study, ebopiprant reduced delivery in singleton pregnancies at 48 hours after the start of dosing by 55% compared to atosiban alone. Overall, 7/56 (12.5%) of women receiving ebopiprant delivered within 48 hours of starting treatment compared to 12/55 (21.8%) receiving placebo (OR 90% CI: 0.52 (0.22, 1.23)). In singleton pregnancies, 5/40 (12.5%) of women receiving ebopiprant delivered within 48 hours compared to 11/41 (26.8%) receiving placebo (OR 90% CI: 0.39 (0.15, 1.04)).  A modest effect on delivery at 7 days was seen in the singletons.

The incidence of maternal, fetal and neonatal adverse events were comparable between subjects in the ebopiprant group and the placebo group.

“We desperately need new medical treatments for preterm labor to reduce the incidence of preterm birth, which accounts for about 10% of all births.” said Professor Ben Mol, Professor of Obstetrics and Gynecology, Monash University, Australia. “The development of ebopiprant is exciting and the results of PROLONG are promising. A delay of delivery by 48 hours is extremely important as this allows transfer of women to a center with neonatal intensive care facilities, and it allows corticosteroids administered to the mother to have maximal effectiveness for the baby.”

 

About PROLONG

PROLONG is a proof-of-concept Phase 2a clinical trial conducted in two parts: Part A and Part B.

Part A was an open-label single arm trial of ebopiprant administered orally for 7 days to pregnant women with nine subjects enrolled. Ebopiprant was well tolerated by the mothers and their fetuses and the pharmacokinetics of ebopiprant were similar to those previously observed in non-pregnant women.

Today we are reporting results from PROLONG Part B, which is a randomized, double-blind, placebo-controlled, parallel-group trial to assess the efficacy, safety and pharmacokinetics of ebopiprant. Subjects were pregnant women presenting with spontaneous threatened preterm labor between gestational ages of 24 to 34 weeks. To be enrolled, women had to have at least 4 uterine contractions over 30 minutes, and cervical dilatation of 1 to 4 cm, and at least one other symptom of preterm labor from cervical length ≤ 25 mm, or progressive cervical change, or a positive test of preterm labor (e.g. fetal fibronectin). Furthermore, they had to have been prescribed the standard-of-care therapy for preterm labor, atosiban infusion for 48 hours.

Ebopiprant or placebo was administered orally, with 1000 mg as a starting dose (within 24 hours after starting the atosiban infusion), then 500 mg twice a day for 7 days. The women were assessed up to 14 days (unless delivery occurred sooner) and then again at delivery and up to 28 days after delivery. Follow-up of infants at 6, 12 and 24 months after birth is continuing and results will be available in 2021 and 2022. The efficacy endpoints were delivery within 48 h of starting treatment, delivery within 7 days of starting treatment, delivery before 37 weeks of gestation, and time to delivery. Safety assessments included maternal, fetal and neonatal safety. Infants are being followed-up at 6, 12 and 24 months.

To access the PROLONG presentation directly, please click [here].
To access the investor presentation section of the Company’s website, please click [here].

 

About Preterm Labor

Preterm labor, defined as the birthing process starting prior to 37 weeks of gestation, is a serious condition characterized by uterine contractions, cervical dilation and rupture of the fetal membranes that can lead to preterm birth. According to a study published in the Lancet in 2012, approximately 15 million babies were born before 37 weeks of gestation in 2010, accounting for 11.1% of all live births worldwide. Over 1 million children under the age of five die each year worldwide due to preterm birth complications, and many infants who survive preterm birth are at greater risk for cerebral palsy, delays in development, hearing and vision issues, and often face a lifetime of disability. The rates of preterm births are rising in almost all countries with reliable data for preterm birth, and are associated with an immense financial impact to the global healthcare system. Until now, no universal treatment is available to stop or delay preterm birth.

To date, only treatments with limited efficacy or restrictive safety issues are available to treat preterm labor. In the United States, no drugs are approved for acute treatment of PTL and recommended off-label tocolytic treatments (medications that inhibit labor) include beta-adrenergic receptor agonists, calcium channel blockers, or NSAIDs, which are used for short-term prolongation of pregnancy (up to 48 hours) to allow for the administration of antenatal steroids (e.g. betamethasone). Magnesium sulfate, used for fetal neuroprotection can also be used (up to 48 hours) to inhibit acute preterm labor. Approved tocolytic treatments in Europe include beta-adrenergic agonists, which carry severe maternal cardiovascular risks, and intravenous infusions of atosiban (an oxytocin receptor antagonist).

While non-specific prostaglandin inhibitors (NSAIDs) have been shown to be effective for inhibiting preterm labor, use of such drugs is limited, due to the threat of serious and sometimes life-threatening side effects in the fetus. Such side effects may include kidney function impairment, premature constriction of the blood vessel connecting the pulmonary artery and the descending aorta in a developing fetus (ductus arteriosus), and higher risk of thrombosis of the intestinal arteries (a condition called necrotizing enterocolitis).

 

About Ebopiprant and
PGF_2α

ObsEva is developing ebopiprant, a potential first-in-class, once daily, oral and selective prostaglandin F_2α receptor antagonist, which is designed to control preterm labor by reducing inflammation, decreasing uterine contractions, preventing cervical changes and fetal membrane rupture without causing the potentially serious side effects to the fetus seen with non-specific prostaglandin synthesis inhibitors (NSAIDs). PGF_2α is believed to induce contractions of the myometrium and also upregulate enzymes causing cervix dilation and membrane rupture. In nonclinical studies, ObsEva has observed that ebopiprant markedly reduces spontaneous and induced uterine contractions in pregnant rats without causing the fetal side effects seen with non-specific prostaglandin inhibitors such as indomethacin.

Ebopiprant (OBE022) was licensed from Merck KGaA, Darmstadt, Germany, in 2015. ObsEva retains worldwide, exclusive, commercial rights.

 

About ObsEva

ObsEva is a biopharmaceutical company developing and commercializing novel therapies to improve women’s reproductive health and pregnancy. Through strategic in-licensing and disciplined drug development, ObsEva has established a late-stage clinical pipeline with development programs focused on treating endometriosis, uterine fibroids, preterm labor, and improving embryo transfer outcomes following in vitro fertilization. ObsEva is listed on the Nasdaq Global Select Market and is trading under the ticker symbol “OBSV” and on the SIX Swiss Exchange where it is trading under the ticker symbol “OBSN”. For more information, please visit www.obseva.com.

 

Cautionary Note Regarding Forward Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe”, “expect”, “may”, “plan,” “potential,” “will,” and similar expressions, and are based on ObsEva’s current beliefs and expectations. These forward-looking statements include expectations regarding the potential therapeutic benefits and the clinical development of ebopiprant. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include uncertainties inherent in the conduct of clinical trials, results of earlier preclinical studies and clinical trials not being predictive of results of future preclinical studies or clinical trials, clinical development and related interactions with regulators, ObsEva’s ability to develop and eventually commercialize one or more product candidates, ObsEva’s reliance on third parties over which it may not always have full control, the impact of the novel coronavirus outbreak, and other risks and uncertainties that are described in the Risk Factors section of ObsEva’s Annual Report on Form 20-F for the year ended December 31, 2019, the Risk Factors disclosed in ObsEva’s Report on Form 6-K filed with the Securities and Exchange Commission (SEC) on November 5, 2020 and other filings ObsEva makes with the SEC. These documents are available on the Investors page of ObsEva’s website at http://www.obseva.com. Any forward-looking statements speak only as of the date of this press release and are based on information available to ObsEva as of the date of this release, and ObsEva assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

For further information, please contact:

CEO Office contact

Shauna Dillon
Shauna.dillon@obseva.ch
+41 22 552 1550

 

 

 

Attachment

• Press Release in Pdf

 

Amsterdam, 16 November 2020

— AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) announces the formation of AMG Chrome US LLC (“US Chrome”).  US Chrome will manufacture chrome metal products in New Castle, PA. The US Chrome plant will be located on the premises of the former International Specialty Alloys (“ISA”), which AMG acquired from Kennametal, Inc.  US Chrome will be the only producer of chrome metal in the United States. Chrome metal is classified as a critical material by the US government.

US Chrome is part of AMG Superalloys, a world-leading chrome metal producer with its principal operations in Rotherham, UK.

We anticipate AMG Chrome US LLC will begin production in early 2021.

About AMG

AMG is a global critical materials company at the forefront of CO₂ reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG Critical Materials produces aluminum master alloys and powders, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Technologies produces titanium aluminides and titanium alloys for the aerospace market; designs, engineers, and produces advanced vacuum furnace systems; and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.

With approximately 3,100 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).

For further information, please contact:

Michele Fischer
Vice President Investor Relations
AMG Advanced Metallurgical Group N.V.
+1 610 975 4979
[email protected]

Disclaimer

Certain statements in this press release are not historical facts and are “forward looking”.  Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.  When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements.  By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.  These forward looking statements speak only as of the date of this press release.  AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.

 

Attachment

• AMG Chrome LLC November 16 2020