TSXV: CST
QUEBEC CITY, Sept. 16, 2019 /CNW Telbec/ - CO2
Solutions Inc. (TSXV: CST) ("CO2 Solutions" or the
"'Corporation") announced today that it has filed a notice of
intention to make a proposal (the "Notice") pursuant to the
provisions of Part III of the Bankruptcy and Insolvency
Act (Canada). Pursuant to
the Notice, Ernst and Young Inc. ("E&Y") has been appointed as
trustee and will assist CO2 Solutions in its
restructuring efforts.
The filing of the Notice follows the review of the Corporation's
strategic alternatives by a committee of its board of directors
formed of all the independent directors of the board
(the "Special Committee"), further to the announcement, on
February 28, 2019, of significant cost overruns in connection
with the completion of the CO2 capture unit located at
the pulp mill of Resolute Forest Products in Saint-Félicien,
Québec. At the recommendation of the Special Committee, the board
of directors of the Corporation determined it would be in the best
interest of the Corporation and all of its stakeholders for the
Corporation to seek protection from its creditors, given the
Corporation's current financial position. While under protection,
the Corporation, with the support of the Special Committee and
under E&Y's supervision, will continue with its efforts to
pursue strategic alternatives. There can be no assurance that the
strategic process will result in the realization of any specific
transaction or agreement. The Corporation does not plan to make
future comments about the status of this strategic process unless
there are material developments.
Mr. Robert Manherz resigned from
the Board of Directors of the Corporation in the context of the
filing of the Notice because he is a significant secured creditor
of the Corporation.
As a consequence of the filing, all recourses by the unsecured
creditors of the Corporation will be stayed for an initial 30-day
period (which may be extended by the Court), which will protect
CO2 Solutions and its assets from claims from its
creditors while it pursues its restructuring efforts.
About CO2 Solutions Inc.
CO2
Solutions is a Canadian Corporation and leading innovator in the
field of enzyme-enabled carbon capture and has been actively
working to develop and commercialize the technology for stationary
sources of carbon pollution. CO2 Solutions'
technology lowers the cost barrier to Carbon Capture, Utilization
and Sequestration and (CCUS), positioning it as a viable
CO2 mitigation tool, as well as enabling industry to
derive profitable new products from these
emissions. CO2 Solutions has built an extensive
patent portfolio covering the use of carbonic anhydrase, or
analogues thereof, for the efficient post-combustion capture of
carbon dioxide with low‐energy aqueous solvents. Further
information can be found at www.co2solutions.com.
CO2 Solutions Forward-looking
Statements
Certain statements in this news release may be
forward-looking. These statements relate to future events and
reflect the current assumptions and expectations of management.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "predicts", "potential", "targeted",
"plans", "possible" and similar expressions, or statements that
events, conditions or results "will", "may", "could" or "should"
occur or be achieved.
Factors that could cause actual results to differ materially
from such forward-looking statements include, but are not limited
to, (i) the outcome of the review process of all strategic
alternatives available to the Corporation, (ii) the ability of
the Corporation to submit a proposal acceptable to its creditors;
(iii) the ability of the Corporation to continue its
activities; (iv) the ability of the Corporation to secure
additional funds, (v) general business and economic
uncertainties, (vi) third party events and adverse market
conditions and (vii) those risks set out in the Corporation's
public documents filed on SEDAR. The Corporation's forward-looking
statements are based on the beliefs, expectations and opinions of
management on the date the statements are made. Consequently, all
forward-looking statements made in this news release involve known
and unknown risks and uncertainties that could cause actual results
to differ materially from those expressed or implied in these
forward-looking statements.
Readers are cautioned not to place undue reliance on such
forward-looking statements. CO2 Solutions undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required under applicable law.
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.
SOURCE CO2 Solutions Inc.