Trading Symbol: TSX-V: OTSO
TORONTO, Dec. 3, 2021 /CNW/ - Otso Gold Corp.
("Otso" or the "Company"), (TSXV:OTSO) announced
today it has obtained an order from the Supreme Court of
British Columbia (the
"Court") granting protection from creditors under the
Companies' Creditors Arrangement Act (Canada) ("CCAA") to enable the Company
to propose a plan of arrangement to its creditors.
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 file for an application for creditor protection
under the CCAA.
The initial Court order provides for a stay of creditor claims
with a view to provide the necessary protection to continue the
Company's ongoing review process following the previously announced
appointment of Alvarez & Marsal Nordic AB to provide Chief
Restructuring Officer ("CRO") and other services to the
Company.
The CRO will remain responsible for the day-to-day operations of
the Company and that the Board of Directors will remain intact. The
Company is committed to completing the restructuring process
quickly and efficiently.
The Court has appointed Deloitte LLP to serve as the Monitor in
the CCAA proceedings to oversee the operations of the Company and
report to the Court during the restructuring. The Company hopes to
exit CCAA protection well-positioned to rebuild its stakeholders'
trust and continue efforts to return the Otso Gold Mine to full
commercial production.
Trading in the common shares of the Company on the TSX Venture
Exchange (the "TSXV") has been halted and it is anticipated
that the trading thereof will continue to be halted until a review
is undertaken by the TSXV regarding the suitability of the Company
for listing on the TSXV. Should the common shares be delisted
following such review by the TSXV, the Company may apply for
listing of the common shares on the NEX Board of the TSXV or
relisting on the TSXV upon exiting the CCAA process, as the case
may be. In addition, the Company anticipates that, as a result of
the Company's filing for protection under the CCAA and its
potential delisting by the TSXV, provincial securities regulators
in Canada may issue a cease trade
order to prevent any trading in the common shares in Canada.
A comeback hearing in respect of the relief granted pursuant to
the Initial Order will be scheduled within ten days (the
"Comeback Hearing"). Interested parties that wish to bring a
motion at the Comeback Hearing are required to provide notice to
the affected parties prior to the Comeback Hearing pursuant to the
requirements set forth in the Initial Order. A copy of the Initial
Order and other information will be available on the Monitor's
website at www.insolvencies.deloitte.ca/en-ca/otsogoldcorp.
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.
The Company's operating subsidiary Otso Gold Oy, a Finnish
limited liability company, has made an equivalent filing for the
commencement of restructuring proceedings under the Finnish
Restructuring Act in Finland. Otso
Gold Oy has requested interim protection from its creditors for the
duration of the court review of its application. The stay, which is
effected upon the commencement of restructuring proceedings but can
be effected on an interim basis already upon filing for
restructuring, prohibits the repayment of existing debts as well as
the collection and enforcement, whether by legal means or
otherwise, of such debts. The enforcement of any securities
provided by the company is also prohibited. The court review of
Otso Gold Oy's application is expected to take several weeks.
Following the abrupt departure of Lionsbridge Pty Ltd on
30 November 2021 the Company
continues to investigate certain management practices, accounting
issues and transactions, including for compliance with the
Company's internal policies, legal and ethical standards. The
Company will update the market on the results of this
investigation, including with respect to any further significant
matters.
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 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 or otherwise, and
(iii) the halt of trading of the common shares and review of the
TSXV regarding the suitability of the Corporation for listing on
the TSXV and any outcome of such review. 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.
