Trading Symbol: TSX-V NEX: OTSO.H
TORONTO, Dec. 20, 2021 /CNW/ - Otso Gold Corp.
("Otso" or the "Company"), (TSXV: OTSO.H) (NEX:
OTSO.H) announced today that the Supreme Court of British Columbia (the "Court") has granted an
amended and restated initial order effective December 15, 2021 in connection with the
insolvency proceedings previously initiated by the Company for
protection from creditors under the Companies' Creditors
Arrangement Act (Canada)
("CCAA").
Pursuant to the amended and restated initial order, among other
things, the Company's application for an extension of the stay
period was extended until January 14,
2022, the Monitor, counsel to the Monitor, and counsel to
the Company's administration charge was increased to $300,000, and Pandion Mine Finance LP was granted
leave to apply for the appointment of a receiver or
receiver-manager of the assets of the Company on January 14, 2022 (or such later date as it may
advise). A copy of the amended and restated initial order and other
information will be available on the Monitor's website at
www.insolvencies.deloitte.ca/en-ca/otsogoldcorp.
As initially disclosed on December 3,
2021, after careful consideration of all available
alternatives following thorough consultation with its legal and
financial advisors, the Board of Directors of the Company
determined that it was in the best interests of the Company and all
of its stakeholders to make the filing under the CCAA (and similar
filings in Sweden and Finland) to obtain interim protection from
creditors under the CCAA and to enable the Company to propose a
plan of arrangement to its creditors.
In addition, effective December 15,
2021, the Company's stock exchange listing was transferred
to the NEX Board and the stock ticker redesignated "OTSO.H".
Trading in the common shares of the Company remains halted and it
is anticipated that the trading thereof will continue to be halted
until a review is completed regarding the suitability of the
Company for listing on the TSX Venture Exchange or the NEX. In
addition, the Company continues to anticipate that, as a result of
the Company's filing for protection under the CCAA, provincial
securities regulators in Canada
may issue a cease trade order to prevent any trading in the common
shares in Canada.
We have been informed that investigations led by law enforcement
in Finland with regard to
suspected criminal activity perpetrated by former management at
Otso are ongoing. At this point, we understand that Mr.
Brian Wesson is being investigated
under criminal suspicion of aggravated means of payment fraud. The
Company continues to undertake its own investigation into these
matters, including investigations concerning the potential
misuse of a position of trust and business secret violations,
and will continue to assist the Finnish authorities wherever
possible.
Further news releases will be provided on an ongoing basis
throughout the CCAA process as required by law or otherwise as may
be determined necessary by the Company or the Court.
Forward-looking Statements
This press release contains forward-looking statements regarding
the Company based on current expectations and assumptions of
management, which involve known and unknown risks and uncertainties
associated with our business and the economic environment in which
the business operates. All such statements are forward-looking
statements under applicable Canadian securities legislation, and
any other applicable law or regulation of any other jurisdiction.
Any statements contained herein that are not statements of
historical facts, including statements regarding our future results
of operations or financial condition, business strategy and plans
and objectives for future operations, may be deemed to be
forward-looking statements. Specific forward-looking statements in
this press release include, but are not limited to: statements with
respect to: (i) the outcome of the CCAA proceedings, local
insolvency proceedings in Sweden
and Finland and/or any related
restructuring proceedings and the timing of any such proceedings,
(ii) the ability of the Corporation to secure additional financing
as part of the CCAA process, local insolvency proceedings in
Sweden and Finland or otherwise, and (iii) the halt of
trading of the common shares and review of the TSXV and NEX
regarding the suitability of the Corporation for future listing on
the TSXV or NEX and any outcome of such review, and the possibility
of a cease trade order under applicable securities law. By their
nature, forward-looking statements require us to make assumptions
and are subject to inherent risks and uncertainties. You should not
rely on forward-looking statements as predictions of future events.
We caution our readers of this press release not to place undue
reliance on our forward-looking statements as a number of factors
could cause actual results or conditions to differ materially from
current expectations. The results, events and circumstances
reflected in the forward-looking statements may not be achieved or
occur, and actual results, events or circumstances could differ
materially from those described in the forward-looking statements.
Please refer to the risks set forth in the Company's continuous
disclosure documents that can be found on SEDAR (www.sedar.com)
under the Company's issuer profile. New risks and uncertainties
emerge from time to time, and it is not possible for us to predict
all risks and uncertainties that could have an impact on the
forward-looking statements contained in this press release. In
addition, there is no assurance that there will be any residual
value for shareholders under the CCAA process, nor 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. The Company does not intend, and disclaims any
obligation, except as required by law, to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
About the Company
Otso Gold Corp. wholly owns the Otso Gold Mine near the Town of
Raahe in Finland. The Otso Gold
Mine is developed, fully permitted, has all infrastructure in
place, two open pits and is currently in the ramp-up towards
commercial production at name plate capacity of 2 million tonnes
per annum.
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 Otso Gold Corp.