MONTREAL, October 20, 2022 /CNW/ – LXRandCo, Inc. (LXR or the company) LXR, announced today that it is conducting a strategic review process to determine the best course of action for the company’s next phase of development and growth. The Company has Stifel Nicolaus Canada, Inc. (Pen GMP) as exclusive financial advisor to evaluate and more fully explore the strategic alternatives available to it, which may include the possibility of raising growth capital, a sale, merger or acquisition by the company.
Since the start of the COVID-19 pandemic in March 2020, the company’s transformation towards a digital-first strategy has been successful. Total sales in 2021 increased $18.0 millionan increase of 31% $13.8 million in 2020 and our trailing twelve month total revenue as of 09/30/2022 was $21.2 million. Year-to-date e-commerce sales now account for 60% of total sales (up from less than 10% in 2019), gross margin (cf Disclosure of Non-GAAP and Other Financial Measures below) to 36% from 32% before the pandemic, and the company’s annual SG&A costs have been significantly reduced from over 20% $19.2 million in 2019 to a current level of $9.5 million and thus positions the company on the path to future profitability.
During the course of the transformation, the company considered and explored several opportunities of a strategic nature, some of which were unsolicited. Given this, combined with the company’s successful repositioning and the increasing consolidation trend in the resale sector, the company believes it is appropriate at this time to formally review its growth alternatives and initiate a strategic review. However, there can be no assurance that the strategic review process will result in a transaction or other alternative, its outcome or timing. The Company has not set a timeline for completing the review process and does not intend to regularly…
