An anonymous director reports

ANAERGIA REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

Anaergia Inc. today released its financial results for the three- and nine-month periods ended Sept. 30, 2023 (Q3 2023), and the related management's discussion and analysis (MD&A) for the period. Certain highlights from these financial results and from the MD&A are included herein. All financial results are reported in Canadian dollars unless otherwise stated.

Notable developments

• Anaergia announced, on Sept. 28, 2023, that its Rhode Island bioenergy facility (RIBF) closed a $20-million (U.S.) term loan with East West Bank, a California corporation, to finance the remaining construction and commissioning of the RIBF BOO project and working capital.
• Anaergia announced, on Sept. 13, 2023, that it had engaged Piper Sandler & Co. to assist the company and its advisers with the company's previously announced strategic review. This process is continuing. As previously disclosed, the company requires additional financing to finance its operations and continue to operate as a going concern. The company cautions that there are no assurances that the evaluation of the potential options will result in the approval or completion of any specific transaction or outcome.
• Anaergia announced, on Aug. 17, 2023, that it had sold its equity interests in its subsidiary that owned the six Italian build-own-operate (BOO) assets and approximately $55-million in intercompany loans (as previously written off by the company) to Arjun Infrastructure Partners (AIP). This sale was in exchange for the termination of obligations relating to approximately $145-million in loan obligations owing to AIP, including with respect to a lender option for AIP to require Anaergia to purchase outstanding loans relating to any BOO projects for which senior debt financing was not secured by a set time. As a result of the foregoing, Anaergia received de minimis cash consideration.

Financial results for Q3 2023

Q3 2023 financial highlights:

• Revenues decreased 25 per cent, or $11.1-million, to $34.0-million compared with the same period in fiscal 2022 (Q3 2022: $45.0-million). The decrease was mainly due to European capital sales projects coming to completion, some projects facing customer delays and delays in new project signings.
• Net loss of $30.6-million decreased 616 per cent, or $26.3-million, compared with the same period in fiscal 2022 (Q3 2022: net loss of $4.3-million). The decrease was mainly driven by an impairment loss recorded for Fibracast, losses in equity accounted investees and finance costs related to increased lending activity.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) declined 876 per cent, or $10.2-million, to a loss of $11.3-million compared with the same period in fiscal 2022 (Q3 2022: loss of $1.2-million). The decline was due to an increased loss from operations.

For a more detailed discussion of Anaergia's results for Q3 2023, please see the company's financial statements for Q3 2023 and related MD&A, which are available at and on the company's SEDAR+ page.

Fiscal 2023 guidance not reinstated

As previously disclosed, management will not be able to provide any updates regarding guidance, including projected revenue and adjusted EBITDA, until the completion of the company's strategic review and a reassessment of assumptions related thereto.

Conference call and webcast details

A conference call to review the company's financial results will take place at 9 a.m. ET on Tuesday, Nov. 14, 2023. It will be hosted by management of Anaergia. An accompanying slide presentation will be posted to the investor relations section of the company's website shortly before the call.

The webcast will be archived and available in the investor relations section of our website following the call.

About Anaergia Inc.

Anaergia was created to eliminate a major source of greenhouse gases by cost-effectively turning organic waste into renewable natural gas (RNG), fertilizer and water, using proprietary technologies. With a proven record from delivering world-leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high-efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. The company's customers are in the municipal solid waste, municipal waste water, agriculture and food processing industries. In each of these markets, Anaergia has built many successful plants, including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.

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