LXRandCo, Inc. Announces Filing of Amended and Restated Consolidated Financial Statements and MD&AS

MONTREAL, Nov. 14, 2018 /CNW/ - LXRandCo, Inc. (TSX: LXR, LXR.WT) ("LXRandCo" or the "Company") announced today that it has filed its amended and restated consolidated financial statements as at and for the years ended December 31, 2017 and 2016 (the "2017 Amended and Restated Financial Statements") and corresponding management's discussion and analysis for the years ended December 31, 2017 and 2016, and its amended and restated interim condensed consolidated financial statements for the three- and six-month periods ended June 30, 2018 and 2017 (the "Q2 2018 Amended and Restated Interim Condensed Consolidated Financial Statements") and corresponding management's discussion and analysis for the periods ended June 30, 2018 and 2017. 

The Company's complete "2017 Amended and Restated Financial Statements" and corresponding management discussion and analysis for the years ended December 2017 and 2016, and the complete "Q2 2018 Amended and Restated Interim Condensed Consolidated Financial Statements" and corresponding management's discussion and analysis for the for the three- and six-month periods ended June 30, 2018 and 2017, are available on the Company's web site at http://investors.lxrco.com/financials-reports-information and under the Company's profile on SEDAR at www.sedar.com.

2017 Amended and Restated Financial Statements

Following the filing on March 21, 2018 of the audited consolidated financial statements as at and for the years ended December 31, 2017 and 2016, management and the Company's external auditors reconsidered the accounting treatment of the equity consideration resulting from the LXR Acquisition. Contemporaneously with the reconsideration of the fair value of the equity consideration resulting from the LXR Acquisition, management identified an inconsistency in the accounting of the fair value of Convertible preferred shares of LXR International issued and outstanding prior to the LXR Acquisition. The reconsideration of the fair value of the convertible preferred shares of LXR International also impact the accounting for the reacquisition of control of an associate (Groupe Global LXR Inc.) as well as the accounting for the issuance of stock-based compensation since the fair value used in these transactions were derived from the determination of the fair value of the convertible preferred shares of LXR International. In addition, as a result of other work completed by management on its inventory resulting from a material weakness identified after the previous consolidated financial statements were issued, management concluded that there were misstatements in the December 31, 2017 inventory balance that required correction. For details on the restatement, please refer to Note 1b) of the "2017 Amended and Restated Financial Statements".

Q2 2018 Amended and Restated Interim Condensed Consolidated Financial Statements

The Company's interim condensed consolidated financial statements for the three- and six-month periods ended June 30, 2018 were filed without the Company's external auditors having completed their review thereof, as the external auditor had not yet issued its independent auditor's report for the "2017 Amended and Restated Financial Statements", as was disclosed in such interim condensed consolidated financial statements in compliance with applicable law. For details on the restatement, please refer to Note 1a) of the "Q2 2018 Amended and Restated Interim Condensed Consolidated Financial Statements".

About LXRandCo

LXRandCo is an international omni-channel retailer of branded vintage luxury handbags and other personal luxury products. LXRandCo sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, and sells them at attractive prices through: a retail network of stores located primarily in major department stores in the United States and Canada; wholesale operations primarily in the United States; and its own e-Commerce website, www.lxrco.com.

Caution Regarding Forward-Looking Statements

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 reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. 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.

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.

Readers are cautioned that the actual results achieved may vary from the information provided herein and that such variations may be material. Consequently, there are no representations by LXRandCo that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.

SOURCE LXRandCo, Inc.

For further information: Audrey Lara, Chief Financial Officer, LXRandCo. Inc., +1 (514) 718-9541, audrey.l@lxrco.com; Lawrence Chamberlain, LodeRock Advisors, Investor Relations, +1 (416) 519-4196, lawrence.chamberlain@loderockadvisors.com