Nemaska Lithium Announces Workforce Reduction
January 27 2020 - 12:19PM
Nemaska Lithium Inc.
(“
Nemaska Lithium” or the
“
Corporation”) announces a further reduction,
today, of its workforce in connection with the ongoing process
under the Companies’ Creditors Arrangement Act (CCAA) and its work
aimed at formalizing an eventual plan of arrangement acceptable to
its creditors and the Court.
The 29-employee layoff is the result of a review
of the essential activities that the Corporation must carry out to
ensure the development of the Whabouchi project, while preserving
its cash in anticipation of the examination of available
alternatives, including any refinancing to allow an orderly
resumption of the project. Once the downsizing is completed, little
over 30 employees will remain at the Corporation’s employ.
“It is with great sadness that we must let go
our colleagues. Their hard work over the years, sometimes under
challenging circumstances, allowed us to advance the Whabouchi
project to the maximum while awaiting the required financing to
complete it. I would like to sincerely thank them for their
important contribution,” said Guy Bourassa, president and chief
executive officer. “This difficult decision was inevitable at this
point. We are offering all the support and guidance to the
employees that are leaving us, and which may help them towards
their next steps. We sincerely hope to have the privilege to
welcome back many of them once we are able to resume the
project."
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. You can also refer to
the Monitor’s website for more information on the CCAA procedures
at
https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc.html.
About Nemaska Lithium
Nemaska Lithium Inc. 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.
For more information, visit
www.nemaskalithium.com.
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 application and proceedings,
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,
notably but without limitation, the achievement of a Court-approved
arrangement under the CCAA to allow the resumption of the project
construction and engineering activities.
Forward-looking statements contained in this
press release include, notably but without limitation, those
related to (i) the outcome of the CCAA proceedings, (ii) the
ability of the Corporation to secure additional financing and to
complete the necessary preparation to allow an orderly resumption
of the project, (iii) the Corporation’s capacity to develop the
Whabouchi project, (iv) preserving the Corporation’s cash, (v) the
Corporation pursuing alternatives to secure the financing, (vi) the
eventual return of laid off employees once the project is
relaunched, and (vii) 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. In addition, 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.
Further information regarding Nemaska Lithium is
available in the SEDAR database (www.sedar.com) and on the
Corporation’s website at: www.nemaskalithium.com.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Gabrielle TellierMedia
Relations514 348-0466gabrielle.tellier@nemaskalithium.com |
Wanda Cutler Investor Relations416 303-6460
wanda.cutler@nemaskalithium.com |