ARGAN, INC. (NYSE:AGX) Files An 8-K Other Events
Item 8.01. Other Events.
Press Release
On March 10, 2020, Argan, Inc. (“Argan”) issued a press release announcing that its wholly owned subsidiary, Gemma Power Systems, recently entered into an engineering, procurement and construction services contract with ESC Brooke County Power I, LLC to construct Brooke County Power, a 920 MW natural gas-fired power plant, in Brooke County, West Virginia. The facility is being developed by Energy Solutions Consortium, LLC and construction activities are scheduled to start in 2020 once financial close is achieved. Argan anticipates adding the value of this contract to project backlog closer to the project’s expected start date.
A copy of Argan’s press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.
COVID-19
Like many other companies, the coronavirus (COVID-19) outbreak threatens our supply chain. While we have no operations in China or in other countries significantly impacted by COVID-19, the Company and certain of its major original equipment manufacturers source certain supplies, materials and equipment from these countries. Production disruptions related to the spreading of this virus could negatively impact our schedules thereby adversely affecting our ability to complete large fixed-price contract projects on a timely basis. If the outbreak becomes a global pandemic, it could significantly challenge the Company’s ability to conduct normal operations especially at job sites where sustained labor productivity is essential to the achievement of successful projects. We are actively attempting to manage these risks.
However, due to the uncertainty regarding the duration and extent of the COVID-19 outbreak, the severity of the operational and financial impacts on the Company will depend on how long and disperse the disruptions in a variety of areas prove to be including the capital markets, the Company’s customers and supply chains, and the Company’s labor force. The current impacts of the outbreak on the Company’s businesses are not quantifiable at this time. The Company intends to provide a further update when it files its next annual report on Form 10-K in April 2020.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description |
| 99.1 | Press Release issued by Argan on March 10, 2020 |
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.1 | Press Release issued by Argan on March 10, 2020 |
ARGAN INC Exhibit
EX-99.1 2 tm2012314d1_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 Argan,…
To view the full exhibit click here
About ARGAN, INC. (NYSE:AGX)
Argan, Inc. is a holding company. The Company conducts operations through its subsidiaries, Gemma Power Systems, LLC and affiliates (GPS), Atlantic Projects Company Limited (APC), Southern Maryland Cable, Inc. (SMC) and The Roberts Company (Roberts). Through GPS and APC, the Company’s power industry services segment provides engineering, procurement, construction, commissioning, operations management, maintenance, development, technical and consulting services to the power generation and renewable energy markets. Through SMC, the telecommunications infrastructure services segment of the Company provides project management, construction, installation and maintenance services to commercial, local government and federal government customers. Through Roberts, the Company’s industrial fabrication and field services segment produces, delivers and installs fabricated steel components specializing in pressure vessels and heat exchangers for industrial plants.