MORRISVILLE, N.C.,- Pyxus International, Inc. (“Pyxus” or “the Company”) (NYSE: PYX), a global value-added agricultural company, announced today that its Board of Directors has initiated a process to evaluate a range of strategic alternatives available to the Company to maximize value. As part of the process, the Board established a special committee of independent directors, which will be chaired by Martin R. Wade III. The Special Committee will consider and assess a range of strategic, operational and financial alternatives, which may include a sale, recapitalization or other transaction, and will make related recommendations thereon to the full Board.
Pyxus has retained Lazard and RPA Advisors as its financial advisors to assist with the strategic review process, and Simpson Thacher & Bartlett LLP, as legal counsel.
As previously disclosed, Pyxus initiated an evaluation of plans for a potential partial monetization of interests in its non-tobacco subsidiaries, and launched a Global Operations Efficiency Program with the aim to position the Company for long-term success. The Company believes now is an appropriate time to explore a broad range of strategic alternatives that may have the potential to unlock value for the future.
There can be no assurance that the strategic alternatives review process will result in any transaction or strategic alternative, or any assurance as to its outcome or timing. The Company has not set a timetable for completion of the review process and does not intend to disclose developments related to the process unless and until the Company executes a definitive agreement with respect thereto, or the Board otherwise determines that further disclosure is appropriate or required.
About Pyxus International, Inc.
Pyxus International Inc. (NYSE: PYX) is a global agricultural company with 145 years experience delivering value-added products and services to businesses, customers and consumers. Driven by a united purpose—to transform people’s lives, so that together we can grow a better world—Pyxus International, its subsidiaries and affiliates, are trusted providers of responsibly sourced, independently verified, sustainable and traceable agricultural and consumer-driven products and ingredients. For more information, visit www.pyxus.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. Such statements include, but are not limited to, statements about future financial and operating results, plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based on the current beliefs and expectations of management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results may differ materially from those currently anticipated expected or projected. The following factors, among others, could cause actual results to differ from those expressed or implied by the forward-looking statements: the impact of the COVID-19 pandemic, changes in the timing of anticipated shipments, changes in anticipated geographic product sourcing, developments in relevant capital markets affecting the terms and availability of financing, political instability, currency and interest rate fluctuations, shifts in the global supply and demand position for tobacco products, changes in tax laws and regulations or the interpretation of tax laws and regulations, resolution of tax matters, adverse weather conditions, the impact of disasters, pandemics or other unusual events affecting international commerce, changes in costs incurred in supplying products and related services, uncertainties with respect to the impact of regulation associated with consumer products business lines, including the risk of obtaining anticipated regulatory approvals in Canada and for e-liquids products in the United States, uncertainties regarding the regulation of the production and distribution of legal cannabis and industrial hemp products and continued compliance with applicable regulatory requirements, uncertainties with respect to the development of the industries and markets of the consumer products business lines, consumer acceptance of products offered by the consumer products business lines, uncertainties with respect to the timing and extent of retail and product-line expansion, the impact of increasing competition in the consumer products business lines, uncertainties regarding obtaining financing to fund planned facilities expansions, the possibility of delays in the completion of facilities expansions and uncertainties regarding the potential production yields of new or expanded facilities, as well as the progress of legalization of cannabis for medicinal and adult recreational uses in other jurisdictions. Additional factors with respect to risks and uncertainties with respect to an investment in the common stock of Pyxus International, Inc. can be found in its Annual Report on Form 10-K for the period ended March 31, 2019 and its other filings with the Securities and Exchange Commission (the “SEC”) which are available at the SEC’s Internet site (http://www.sec.gov). Pyxus does not undertake to update any forward-looking statements made in this press release to reflect any change in management’s expectations or any change in the assumptions or circumstances on which such statements are based, except as required by law.