Nemaska Lithium Inc.
(“
Nemaska Lithium” or the
“
Corporation”) today announces important change in
its management and provides an update regarding the restructuring
efforts undertaken since obtaining protection under the Companies’
Creditors Arrangement Act (the “
CCAA”) on December
23rd, 2019.
Change in Management
The Board of Directors of Nemaska Lithium is
announcing the departure of the President and CEO, Mr. Guy
Bourassa, who is leaving the Corporation’s management and his seat
on the Board of Directors as of today.
“On behalf of the Board of Directors, I would
like to thank Mr. Bourassa for the many years he devoted to helping
build Nemaska Lithium. His dedication to creating the company and
his contribution to the development of this niche market in Québec
will remain an undeniable legacy,” said Jacques Mallette, Chairman
of the Nemaska Lithium Board of Directors. “Given the restructuring
the Corporation is undergoing and the current market conditions, we
mutually agreed that it was in the best interest of the Corporation
to undertake the next steps with a new approach and renewed
leadership. The Board will work closely with the management team
and employees, in whom we reaffirm our complete confidence, in
order to lead the Corporation in a direction that will ensure its
success.”
The Chairman of the Board of Directors and the
Corporation’s management team will oversee and ensure the
continuity of the restructuring operations.
Progression of the Restructuring Process
As regards the restructuring process, which was
undertaken on December 23rd, 2019 under the supervision of the
Superior Court of Québec (the “Court”), Nemaska
Lithium continues to collaborate closely with
PricewaterhouseCoopers Inc., who is acting as the court-appointed
Monitor responsible for overseeing the Corporation’s
operations.
The financial advisors responsible for
conducting the Sale & Investor Solicitation Process (SISP) are
continuing in their efforts to incentivize purchasers or new
investors, while finalizing, jointly with the Nemaska Lithium team,
the economic and technical documents which will be made available
to interested parties starting at the end of February.
Furthermore, the claims process is ongoing, in
order to proceed as soon as possible with the review and
determination of the number and quantum of claims against the
Corporation and its subsidiaries, as well as their directors and
officers. Pursuant to the Claims Procedure Order of the Court,
persons having claims against the Corporation, its subsidiaries,
and their directors and officers must file their proofs of claim at
the latest on March 31, 2020, failing which these persons will be
barred from asserting their claims.
For more information regarding the various
proceedings under way pursuant to the CCAA, please consult the
Monitor’s website at the following address:
https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc.html.
Filing of the 2nd Quarter Financial
Statements
Since it remains a reporting issuer under the
Securities Act, Nemaska Lithium published its financial statements
and management report for the second quarter of its fiscal year on
SEDAR on February 14th, 2020. The documents are available on the
Nemaska Lithium website.
Settlement of the Court Case with Holders of the Senior
Secured Bonds
The settlement of the court case with the
holders of the Senior Secured Bonds announced on January 29, 2020
was approved by these holders and the Court, respectively, on
February 12 and February 13. The Corporation expects the settlement
to be implemented in the week of March 9, 2020.
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.
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 deemed
necessary 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 on the CCAA procedures at
https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc.html.
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 leadership transition, the CCAA
application and proceedings, the aforesaid settlement with the
bondholders, 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 to allow the resumption of the project construction
and engineering activities.
Forward-looking statements contained in this
press release include, 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 ability to effect a successful
leadership transition, (iv) the Corporation’s ability to generate
interest, under the SISP, for a recapitalization of the Corporation
or in its business or assets with the goal of maximizing return,
(v) the implementation of the aforesaid settlement with the
bondholders, (vi) the potential foundation of a plan of compromise
or arrangement for all stakeholders of the Corporation, (vii) the
number and quantum of claims to be processed and the eventual
outcome thereof, (viii) the Board of Directors working with
management and employees to lead the Corporation in a direction
that will ensure its success, and (ix) 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 leadership transition will be successful, that
the aforesaid settlement with bondholders will be implemented, 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 with 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 Relations 514 348-0466
gabrielle.tellier@nemaskalithium.com |