Item 8.01. Other Events
Mitcham Industries, Inc. ("Mitcham") is providing the following update on its
business operations. On March 18, 2020, our facility in Malaysia closed for a
two-week period as mandated by the Malaysian government in light of the global
outbreak of the Coronavirus Disease 2019 ("COVID-19"). Mitcham cannot predict
whether such closure may be extended or whether additional action may be taken
by the Malaysian government. Management of the Company does not believe the
current two-week closure will have a material adverse effect upon the Company or
its liquidity, financial condition, and results of operations; however, if the
closure is extended or any other facilities are closed, there could be a
material adverse effect upon the Company or its liquidity, financial condition,
and results of operations.
In addition, due to the uncertainty regarding the impact of the spread of
COVID-19, Mitcham is supplementing the risk factor disclosure contained in its
Securities and Exchange Commission filings. Accordingly, Mitcham's risk factor
disclosure is hereby updated as follows:
Mitcham faces risks related to health epidemics and other outbreaks, including
the recent spread of the COVID-19 or novel coronavirus, or fear of such an
event.
Our business could be adversely affected by a widespread outbreak of contagious
disease, including the recent outbreak of respiratory illness caused by a
COVID-19. The spread of COVID-19 is currently impacting countries and
communities where we have facilities and employees, as well as those where our
suppliers and customers have operations. We are monitoring the outbreak of
COVID-19 and taking certain steps deemed necessary to mitigate risks to us, our
employees, business associates and communities. To date, the spread of COVID-19
has not had a material impact on Mitcham. However, on March 18, 2020, our
facility in Malaysia was closed for a two-week period mandated by the Malaysian
government. We cannot predict whether there will be additional closures at any
of our facilities, including an extension of the closure mandated by the
Malaysian government, or other interruptions or impact to our business
activities from the spread of COVID-19. Furthermore, our reliance on third-party
suppliers, contract manufacturers, and service providers exposes us to
possibility of further delay or interruption of our operations. We are unable to
accurately predict the impact that COVID-19 will have on our business due to
various uncertainties, including the ultimate geographic spread of COVID-19, the
severity of the disease, the duration of the outbreak, and actions that may be
taken by governmental authorities in the countries and communities where we, our
suppliers, or our customers have operations. If there are extended or additional
facility closures, or other interruptions to our business, including as a result
of impact on third-party suppliers, contract manufacturers and service
providers, related to the spread of COVID-19, such disruptions could have a
material adverse impact on our liquidity, financial condition, and results of
operations.
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