/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES/
MARKHAM,ON, March 18, 2020 /CNW/ -
Nexia Health Technologies Inc. (TSXV-NGH.H) (the "Corporation")
announced that it has filed a Notice of Intention to Make a
Proposal (the "Notice") pursuant to Part III of the Bankruptcy
and Insolvency Act (Canada).
Pursuant to the Notice, A. Farber & Partners Inc. has been
appointed as the proposal trustee (the "Trustee") in the
Corporation's proposal proceedings (the "Proposal") and will assist
the Corporation in its restructuring efforts. This filing
follows the Corporation's inability to reach a consensual framework
for the restructuring of its obligations to its largest creditor, a
former software vendor to the Corporation (the "Claimant").
Since the Corporation's legal dispute update announcement of
October 24, 2019 (the
"Announcement"), the Corporation and the Claimant have explored
alternative frameworks for the restructuring of the obligations
owing to the Claimant in order to further explore, among other
things, the potential realizable value in the Corporations residual
assets. The Claimant also initiated legal efforts in the
Ontario courts to permit it to
enforce judgment against the Corporation in Ontario, and a court date for such proceedings
is expected to occur in late March 2020.
The filing of the Notice has the effect of imposing an automatic
30-day stay of proceedings that will protect the Corporation and
its assets from the claims of creditors while the Corporation
continues to pursue its restructuring efforts. This 30-day period
may be extended with the authorization of the Ontario Superior
Court of Justice.
Management will work closely with the Corporation's board of
directors and its financial and other advisors and, with the
assistance of the Trustee, will initiate a strategic review process
in order to maximize the realizable value of the Corporation's
residual assets.
There can be no assurance that the strategic process will result
in the Corporation securing any financing or realizing any value in
the Corporation's residual assets in any transaction or, if a
transaction is proposed, that it will be successfully concluded in
a timely manner or at all.
Failure by the Corporation to achieve its financing and
restructuring objectives through an approved Proposal will result
in the Corporation becoming bankrupt.
The Corporation will provide updates on this matter when it
becomes aware of new material information.
Forward-Looking Statements:
This release contains forward-looking statements.
Forward-looking statements, without limitation, may contain the
words believes, expects, anticipates, estimates, intends, plans, or
similar expressions. Forward-looking statements are not guarantees
of future performance. They involve risks, uncertainties and
assumptions and actual results could differ materially from those
anticipated. Forward looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
In the context of any forward-looking information please refer to
risk factors detailed in, as well as other information contained in
the Company's filings with Canadian securities regulators
(www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Nexia Health Technologies Inc.