HAMILTON, Ontario, Feb. 05, 2019 (GLOBE NEWSWIRE) -- Agility Health, Inc. (TSXV: AHI) (“Agility Health” or “Company”) announces that two (2) of the Company’s operating subsidiaries, Ontario Orthotic Lab Inc. (“OOLab”) and Premier Footworks Inc. (“Premier”), were made the subject of a receivership order issued on December 13, 2018 by the Ontario Superior Court of Justice upon the application of the Company's senior secured creditor, Royal Bank of Canada (“RBC”). The Fuller Landau Group Inc. (“Fuller”) was appointed as Receiver and Manager of all of OOLab’s and Premier’s current and future assets, undertakings and properties and as trustee in bankruptcy for Medic Holdings Corp. On the same date, RBC obtained an order terminating the previous NOI Proceedings (defined below) resulting in the deemed assignment into bankruptcy of each of OOLab and Premier, along with two other Company subsidiaries, Veba Sock Company Inc. (“Veba”) and Medic Holdings Corp. (“Medic”). Ernst & Young Inc. (“EY”) was appointed bankruptcy trustee of OOLab, Premier and Veba. Fuller was appointed bankruptcy trustee of Medic.
Background
In mid-November 2018, RBC contacted Agility Health regarding the outstanding loans and lines of credit for the Company’s subsidiaries, OOLab, Premier and Veba. Following unsuccessful discussions and negotiations among OOLab, Premier, Veba and RBC pertaining to acceptable terms for a forbearance agreement, RBC made formal demand for payment of their indebtedness to RBC by letter dated November 21, 2018 (the "Demand Letters"). Notices of Intention to Enforce Security (the "BIA Notices") pursuant to sec. 244(1) of the Bankruptcy and Insolvency Act accompanied the Demand Letters.
On December 3, 2018, OOLab, Premier, Veba and Medic each filed a Notice of Intention to make a Proposal ("NOI Proceedings") pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act. EY was named Proposal Trustee. As mentioned above, on December 13, 2018, a receivership order was issued in respect of OOLab and Premier and an order was also issued terminating the NOI Proceedings. The Company’s shares were halted from trading on the TSX Venture Exchange on December 13, 2018.
Current Status
The Company no longer has any business or operations. As a result of this, the Company was advised by the TSX Venture Exchange on January 17, 2019 that its shares will be transferred to NEX when they resume trading. NEX is a separate board of the TSX Venture Exchange for companies previously listed on the TSX Venture Exchange or The Toronto Stock Exchange which have failed to maintain compliance with the ongoing financial listing standards of those markets. NEX has been designed to provide a forum for the trading of publicly listed shell companies while they seek and undertake transactions in furtherance of their reactivation as companies which will carry on an active business.
All four directors of the Company remain committed to finding a solution for the Company that will enhance shareholder value. The Company is looking at different options to carry on an active business and will provide updates when available. However, there is no assurance that the Company will identify a viable solution or that an active and liquid market for its common shares will develop or be sustained.
Reader Advisory
The press release may contain certain forward looking statements which may include plans, expectations, forecasts, projections, guidance or other statements that are not statements of fact. Although Agility Health believes that the expectations reflected in such forward looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. As such, the future plans and objectives of Agility Health are forward looking statements that involve risks and uncertainties that may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. The foregoing list of risk factors is not exhaustive. Additional information on risk factors is included in other public documents available under Agility Health's profile on SEDAR. Although Agility Health has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Agility Health's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, Agility Health does not intend, nor does it undertake any obligation, to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
Neither the 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.
For further information please contact:
Wayne Cockburn
Interim Chief Executive Officer
(905) 505-0770
Wayne@medicholdings.com