Xebec operations deemed ‘essential business’ by Quebec government

By Xebec Adsorption Inc. | March 25, 2020

Xebec Adsorption Inc., a global provider of clean energy solutions announced today that it has been deemed an “essential business” and will continue its regular course of operations and manufacturing in Blainville, Québec.

On March 23, 2020, Québec Premier François Legault announced the closure of all non-essential businesses in the province as of yesterday. Under the provisions of the mandate, Xebec qualifies as an essential business as a supplier of critical equipment and services to key sectors such as energy, healthcare, and pharmaceuticals.


Xebec has supplied more than 10,000 pieces of equipment used by organizations at the forefront of the worldwide outbreak

The company’s industrial service and support business is a key supplier of various types of equipment that are crucial to the operations of essential organizations. For example, Xebec is a leading supplier of medical air systems with over 100 installations in Québec hospitals and installations in British Columbia, Alberta, and other Canadian Provinces.

In addition, other Xebec products can be found in use by food & beverage, pharmaceutical manufacturing, oil refineries, pulp and paper production, electrical power generation, and natural gas transmission and distribution industries across Canada and North America, all listed as “essential businesses & services” by the Québec Government and critical to society in these unparalleled times.

It is key for Xebec to sustain its manufacturing and maintenance operations to support these businesses. As a result, our manufacturing facilities in Québec are at near full capacity.


Further update on global operations

As per our last update on March 16, 2020, our operations in Shanghai, China are fully operational with deliveries having restarted three and a half weeks ago and continue to expand.

Manufacturing in our Italian subsidiary remains on hold and the timeline for restarting has been extended to a later date. Xebec does not expect to restart before mid-April at the earliest.

Similar to our Québec operations, our subsidiary Compressed Air International Inc. based in Toronto will remain open as an essential business. Xebec’s recent acquisition, CDA Systems in Livermore, California, has been shut down and is currently only available to provide emergency onsite maintenance and service.

Xebec continues to be well-positioned to work through these disruptions with its strong balance sheet that include more than $20 million of cash on hand. In addition, Xebec has approximately $18 million in outstanding warrants, exercisable at $1.05 and $1.85 over the next 4 months. Our order backlog stands at $95.1 million (as of January 28th, 2020).

The company continues to follow the current developments and will provide further communications should the effect on operations change materially.

“As we navigate through these unprecedented times, Xebec is focused on contributing to the efforts to fight the novel coronavirus while maintaining business continuity,” said Kurt Sorschak, president and CEO of Xebec Adsorption Inc. “We all need to do our part in supporting frontline workers who are risking their lives every day to battle the virus and take care of the sick and vulnerable.

Many see Xebec as a cleantech and renewable energy leader, but the foundation of the company was built on an industrial compressed air business that goes back 50 years. Today we are still supporting the industry with compressed air products and we continue to offer medical air systems of which over one hundred are in operation in Canada. Additionally, we have offered to the Governments of Canada and Québec our production capability for oxygen concentrators and medical air systems. If they are needed or are in short supply, we stand ready to produce them. We’re proud to do our part in contributing to the cause and will be working diligently to ensure we can continue doing so over the coming months.

As we’ve learned from China, we’ve made arrangements to first protect our employees, customers and partners. All of our administrative and sales personnel now work from home. For our production staff we’ve implemented strict codes and guidelines to reduce risk, in line with Government regulations. Now is the time to be united as the need for action grows stronger every day.”