LAVAL, Québec, July 30, 2018 (GLOBE NEWSWIRE) -- Orbite Technologies Inc. (NEX: ORT.H) (“Orbite” or the “Company”) today provided an update on its continuing efforts to emerge from the protection of the Companies’ Creditors Arrangement Act (“CCAA”).
Orbite completes the Transaction
Further to its press release of July 16, 2018, the Company announces it has received both the CDN$3.5 million Settlement Payment and the CDN$4.0 million DIP Loan. The terms and conditions of the DIP Loan as well as the rank of the security granted are disclosed in more detail in the Monitor’s report and on SEDAR.
Update on the DIP Financings announced in August 2017 and June 2018
Computershare Trust Company of Canada in its capacity as trustee for the holders of the 2015 ITC Debentures (the “Lender”) of the $6.8 million DIP financing announced on August 2, 2017 and of the $650,000 Second DIP financing announced on June 11, 2018, confirmed to the Company that it waived Orbite’s obligation to repay the borrowed sums under both DIP financings until October 1, 2018. Orbite expects such waiver to be further extended by the Lender in order to allow for the completion of the repairs to the calcination equipment before having to repay such borrowed sums.
The Company will provide further updates as developments occur.
There can be no guarantees that Company will otherwise be successful in its restructuring efforts and will emerge from CCAA protection.
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 38 pending patent applications in 11 different countries and regions. 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 July 28, 2017 on SEDAR, including 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.
CONTACT INFORMATION:
FOR MORE INFORMATION, PLEASE CONTACT:
Orbite Technologies Inc.
Geneviève Marchand, Corporate Secretary
Tel.: 450 680-3341
Email: info@orbitetech.com