COVID-19: Sportscene Group Update and Delay in Reporting its Results for the Third Quarter of Fiscal 2020

MONTREAL, July 22, 2020 /CNW Telbec/ - Sportscene Group Inc. ("Sportscene" or "the Company") (TSX-V: SPS.A) provides an update on the impact of the COVID-19 pandemic and announces a delay in reporting its results for the third quarter of fiscal 2020.

Update on Recent Events

Since June 15, 2020, the Company gradually reopened the dining rooms and terraces of the La Cage - Brasserie sportive restaurants, which have been closed since March 25, 2020. Sites that are currently in operation are identified on the website at www.cage.ca. At the majority of restaurants, opening hours are currently limited to the evenings only, from 4 p.m. to 10 p.m. Many measures have been thoughtfully considered and implemented by the operational and human resources teams to provide customers with an enjoyable experience in a safe environment, while respecting all mandatory social distancing guidelines in the context of the ongoing pandemic.

"We are very happy to welcome our customers once again at almost all of our dining rooms. The rigorous protocols we have implemented allow us to offer an enjoyable dining experience while following government guidelines to the highest standards in order to ensure the health, safety and comfort of our customers and employees," said Jean Bédard, President and CEO of Sportscene Group.

Under the current circumstances, because of measures such as social distancing and reduced opening hours, Sportscene had to permanently lay off approximately 30% of its employees. The Company has also closed four restaurants as part of the optimization of its network resulting from the crisis, bringing the total number of La Cage – Brasserie sportive's outlets to 37.

"Even though our customers are coming back, our reduced opening hours and our 50% occupancy ratios do now allow us to recall all of the 2,200 employees that were temporarily laid off last March. We greatly regret these measures which have become inevitable given the new operational context. Nevertheless, we are proud of the work accomplished by all our teams who are ready to quickly adjust to customer demand, " added Mr. Bédard.

Diversification of Our Offering

The crisis certainly highlighted Quebecker's enthusiasm for local products which confirms the strategy that was already initiated by the Company. Sportscene will therefore continue to include on its menu and promote Quebec products including beers, wines and spirits. Additionally, in order to serve our customers outside of our dining rooms, we recently officially launched "La Cage - Chez vous" with an enhanced offering of delivery, take-out and ready-to-cook meals. In addition, retail sales of the La Cage and Moishes products continue to grow as we extend their distribution in several new food banners.

Financial Performance

The return to the financial performance levels experienced before the COVID-19 crisis will depend on the resumption of customer traffic and the evolution of government guidelines. The Company expects that this return will take place gradually over approximately the next 18 to 24 months. Sportscene Group is closely monitoring the evolution of the health situation and remains proactive in order to mitigate the effect on both its operations and financial results. In spite of all the efforts and measures put in place by the Company including shoring up liquidity, the COVID-19 crisis has had a negative effect on the economy and its prospects, and therefore will continue to  have for a period of time a negative impact on the operations and financial performance of Sportscene Group.

Extension of Regulatory Filings of the Third Quarter of Fiscal 2020 Results

Sportscene will rely on the blanket relief allowing it to extend the regulatory filings of its interim documents for the third quarter of fiscal 2020, due do the effects of the COVID-19 pandemic.

Considering the exemptions allowed by Canadian securities regulators, Sportscene will delay the regulatory filings of its interim consolidated financial statements, interim management discussion and analysis and interim certifications for the third quarter ended May 24, 2020. These filings are expected to occur on or about August 27, 2020.

All important events related to the Company's activities since the publication of its last regulatory interim filings which occurred on May 7, 2020, have been disclosed in this press release.

Directors, management and other insiders of the Company are subject to a cease trade policy which is currently in effect and will expire at the end of the second business day following the filing of the Company's interim documents for the third quarter of the current financial year.

Disclaimer

This press release contains forward-looking statements relating to the Company. Statements based on management's current expectations contain known and unknown inherent risks and uncertainties, including risks associated with public health issues such as those resulting from the COVID-19 pandemic. Actual results may vary from expectations. The reader is cautioned not to place undue reliance on forward-looking information. The Company does not undertake any obligation to update or revise any forward-looking statements as a result of new information, future events and other changes, except if required by applicable laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Profile

Sportscene Group Inc. is a pioneer and a leader in the ambiance restaurant niche in Quebec. Since 1984, it has been operating the restaurant chain La Cage – Brasserie sportive (« La Cage »), which differentiates itself by its sporting ambiance and food offering made from fresh, local products. Enjoying a strong brand image, the La Cage banner is present throughout the province and comprises 37 outlets at the date hereof. Sportscene is diversifying its restaurant activities through its operation of the Moishes steakhouse, of a breakfast restaurant L'Avenue, of an Asian cuisine restaurant P.F. Chang's and of its catering business for special events, thus becoming a significant player in Quebec's restaurant industry. Besides its restaurant operations, Sportscene is active in the sale of La Cage and Moishes branded products in grocery stores and of ready-to-eat meals.

SOURCE Sportscene Group Inc.

Jean Bédard, Chairman of the Board, President and Chief Executive Officer; François-Xavier Pilon, Vice-President, Finance, 450-641-3011