LXR provides business update

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MONTREAL, Oct. 2, 2023 /CNW/ - LXRandCo, Inc. ("LXR" or the "Company") (TSX: LXR), a digital-first omni-channel retailer of authenticated pre-owned luxury handbags and accessories, announced today that as a result of its previously publicly disclosed effects of a weakening economy and the negative impact on its higher AOV discretionary consumer products and other factors, it has generated significantly lower revenues in the third quarter than anticipated, which may result in a breach of certain banking covenants, which would in turn result in liquidity issues in its fourth quarter.  The Company is in discussion with its bank lenders regarding possible alternatives to address its financial situation. 

These discussions are ongoing and there can be no assurance, what form, if any, these alternatives, will take. The Company does not currently intend to disclose further developments with respect to these discussions until they further crystallize or terminate or unless required by law. 

LXRandCo is a socially responsible, digital-first omni-channel retailer of authenticated pre-owned luxury handbags and personal accessories. Since 2010, we have been providing consumers with authenticated branded luxury products by promoting their reuse and providing an environmentally responsible way for consumers to purchase luxury products. We achieve this through our digital-first strategy by selling directly to consumers through our website at www.lxrco.com and indirectly, by powering the e-commerce and other platforms of key channel partners. Our omni-channel model is also supported by retail 'shop-in-shop' experience centers and by wholesale activities with select retail partners across North America. 

Certain statements in this press release are prospective in nature and constitute forward-looking information and/or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements generally, but not always, can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "could", "would", "will", "expect", "intend", "estimate", "forecasts", "project", "seek", "anticipate", "believes", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events and the negative of any of these terms. 

Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's revenues, covenants liquidity, discussion with bankers and alternatives. Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management, which includes assumptions about management's historical experience, perception of trends and current business conditions, expected future developments and other factors which management considers appropriate. With respect to the forward-looking statements included this press release, management has made certain assumptions with respect to the economy, AOV, revenues, net income, liquidity and other factors.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward- looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.

By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include, but are not limited to, those factors described under the headings "Risk Factors" and "Management's Discussion and Analysis of LXR ? Risk Factors" in LXR's annual information form (the "Annual Information Form"), and as described from time to time in the reports and disclosure documents filed by the Company with the Canadian securities regulatory agencies and commissions. Such list of risk factors is not exhaustive of the factors that may impact the forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on any of the forward-looking statements in this press release.

All forward-looking statements included in and incorporated into this press release are qualified by these cautionary statements. Unless otherwise indicated, the forward-looking statements contained herein are made as of the date of this press release, and except as required by applicable law, the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE LXRandCo, Inc.