MONTREAL, June 11, 2018 (GLOBE NEWSWIRE) -- Orbite Technologies Inc. (“Orbite” or the “Company”) today provided an update on on its continuing efforts to emerge from insolvency protection.
CCAA Court extends the Stay Period
As announced on March 29, 2018, the Superior Court of Québec (the “CCAA Court”) issued an order pursuant to the Companies’ Creditors Arrangement Act (“CCAA”) providing for a stay of all proceedings until June 8, 2018 (the “Stay Period”). On June 8, 2018 the CCAA Court granted a motion filed by the Company and issued a third amended and restated initial order providing namely for the following orders:
- extending the Stay Period until July 20, 2018; and
- approving $650,000 debtor-in-possession (“DIP”) financing from the holders of Orbite’s 7% Convertible Secured Debentures due September 28, 2018 and a related DIP super-priority charge over the Company’s assets (the “Second DIP Financing”). The Second DIP Financing is in addition to the one announced on August 2, 2017 with the same lender (the “Initial DIP Financing”). The terms and conditions are substantially the same as for the Initial DIP Financing.
The Second DIP Financing will serve for working capital and other general corporate purposes and is expected to close on or about June 13, 2018.
According to the Company’s cashflow projections filed with the CCAA Court, the $650,000 to be received under the Second DIP Financing should allow the Company to maintain its reduced operations until the week of July 22, 2018.
There can be no guarantees that the Company will be successful in its restructuring efforts or will emerge from CCAA protection.
Update on the Outotec Calcination Equipment
As announced on March 29, 2018, Orbite continues working with Outotec, the supplier of the faulty calcination equipment in order to resolve the issues with the equipment.
The causes of the problems encountered and their solutions have been identified by Outotec. Discussions are ongoing between the parties to come to a satisfactory agreement.
Appeal of the decision on the motion against its insurer for indemnification
As announced on March 6, 2018, the Quebec Court of Appeal (“Court of Appeal”) ruled that the Company had the right to appeal the decision rendered by the CCAA Court which denied the motion filed against its insurer. The appeal was heard on May 11, 2018, by a panel of three judges and the decision is in deliberation.
Management and Head office changes
Mr. Yves Noël, Vice-President Business Development, left the Company on June 1 st , 2018 to pursue other opportunities. We thank him for his contribution to the Company.
The head office of the Company is now located in the offices of its technology development center at the following address: 500 boulevard Cartier West, suite 249, Laval, Québec, H7V 5B7.
About Orbite Orbite Technologies Inc. is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallée deposit. The Company's portfolio contains 15 intellectual property families, including 44 patents and 33 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.
Forward-looking statements Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may",” confident”, "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. Risks, uncertainties and other factors that could affect anticipated results and future events also include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on November 28, 2017 on SEDAR, as well as those under the headings “Going Concerns”, Commercial Operation of HPA Plant”, “We will need to raise capital to continue our growth” and “Development Goals and Time Frames” described in the MD&A filed on March 31, 2017.
The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.
FOR MORE INFORMATION, PLEASE CONTACT: Orbite Technologies Inc. Geneviève Marchand, Corporate Secretary Tel.: 450 680-3341 Email: info@orbitetech.com
Media enquiries: TACT Intelligence-conseil Eric Gamache, Senior Director Tel.: 418 529-3223 E-mail: Egamache@tactconseil.ca
