MONTRÉAL, June 29, 2020 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (the “Corporation” or “Nemaska Lithium”) provides an update on its restructuring efforts under the Companies’ Creditors Arrangement Act (the “CCAA”), initiated on December 23, 2019. This update comes as the Corporation proceeded, on June 23, 2020, with the SEDAR filing of its interim financial statements and MD&A for the third quarter ended March 31, 2020. Although its securities are no longer traded on the Toronto Stock Exchange (TSX), the Corporation remains a reporting issuer subject to the Québec Securities Act. Documents filed on SEDAR can also be viewed on Nemaska Lithium’s website.
Short extension of the bid deadline in respect of the Sale or Investor Solicitation Process
Nemaska Lithium is continuing its restructuring efforts, mainly the Sale or Investor Solicitation Process (the “SISP”) and the claims process, in collaboration with its financial and legal advisers and under the supervision of the CCAA Monitor, PricewaterhouseCoopers. As regards the SISP, the Corporation announces that it has obtained today an order from the Superior Court of Québec (the “Court”) peremptorily extending the date on which the eight qualified bidders currently participating in the SISP must deliver their respective bids from June 30 to July 10, 2020 at 5:00 PM (Montréal time).
The COVID-19 crisis had an impact on the ability of certain qualified bidders to conduct their due diligence reviews and the latter have made known to Nemaska Lithium that they would benefit from an extension of the bid deadline. Accordingly, the Corporation sought from the Court an extension of the bid deadline, having determined, in consultation with the Monitor, that it would be in the best interests of its stakeholders to allow a short extension to give all qualified bidders additional time to complete their due diligence reviews.
While such due diligence work is continuing, the Corporation is confident it will receive qualified bids by the July 10, 2020 deadline. Once the qualified bids have been received, Nemaska Lithium, in collaboration with its strategic advisers, will evaluate them to determine which ones qualify for the continuation of the process, with a view to making a recommendation to the Court.
As for the claims process, the Corporation and the Monitor are continuing their review, with the aim of formalizing a plan of arrangement acceptable to its creditors and the Court in a timely manner.
More information regarding the Corporation’s situation, decisions or actions will continue to be provided on an ongoing basis, as required by applicable law or as may be determined by the Corporation or the Court. For more information, visit www.nemaskalithium.com. You can also refer to the Monitor’s website for more information regarding the CCAA procedures at https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc.html.
About Nemaska Lithium
Nemaska Lithium is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, the Corporation intends to facilitate access to green energy, for the benefit of humanity.
The Corporation intends to operate the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade, and the spodumene concentrate to be produced thereat will thereafter be processed at the Shawinigan plant using a unique membrane electrolysis process for which the Corporation holds several patents.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release including, but not limited to, those relating to the CCAA proceedings and the Corporation’s activities and its ability to meet its obligations, constitute “forward-looking information” and “forward-looking statements” within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Certain important assumptions by the Corporation in making forward-looking statements include, but are not limited to, the achievement of a Court-approved arrangement under the CCAA.
Forward-looking statements contained in this press release include, without limitation, those related to (i) the Corporation’s confidence it will receive qualified offers by the bid deadline, (ii) the making of a recommendation to the Court, (iii) the formalizing of a plan of arrangement acceptable to its creditors and the Court in a timely manner, and (iv) generally, the above “About Nemaska Lithium” paragraph which essentially describes the Corporation’s outlook. Forward-looking statements are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. There is no assurance that the Corporation will emerge from the CCAA process by completing a project refinancing, and that there will be any residual value for shareholders under the CCAA process.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that the Whabouchi mine and/or the electrochemical plant in Shawinigan will be commissioned and will begin production, as future events could differ materially what is currently anticipated by the Corporation. In addition, there can be no assurance that the CCAA proceedings will result in the maximization of the return in respect of the Corporation’s assets and those of its subsidiaries.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada including, but not limited to, the cautionary statements made in the “Risk Factors” section of the Corporation’s Annual Information Form dated September 30, 2019, and the “Risk Exposure and Management” section of the Corporation’s quarterly Management Discussion & Analysis. The Corporation cautions that the foregoing list of factors that may affect future results is not exhaustive, and new, unforeseeable risks may arise from time to time. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
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