Trading Symbol: TSX-V: OTSO
TORONTO, Dec. 8, 2021 /CNW/ - Otso Gold Corp.
("Otso" or the "Company"), (TSX-V: OTSO) announced
today it has obtained orders under applicable insolvency
legislation from local authorities in Finland and Sweden with respect to its material
subsidiaries.
In Finland, the Company's
operating subsidiary Otso Gold Oy, a Finnish limited liability
company, was granted a request by the District Court of Oulu for
interim interdictions under the Finnish Restructuring Act relating
to Otso Gold Oy's restructuring application. The stay, which
prohibits the repayment as well as the collection and enforcement,
whether by legal means or otherwise, of existing debts and the
enforcement of any securities provided by the Company, is effective
immediately. The Court has initially granted Otso Gold Oy until
December 31, 2021 to supplement its
application with certain additional required materials. In
addition, in Sweden, the District
Court of Södertörn (Department 4) resolved to open a restructuring
proceeding regarding Otso Gold AB and appointed a local
administrator. A creditors' meeting will be held on December 22, 2021 at the District Court of
Södertörn. The Swedish restructuring proceedings will cease on
March, 7 2022 if an extension request is not filed prior to that
date.
As previously 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 each of the foregoing local
applications for creditor protection and to seek the order given on
December 3, 2021 by the Supreme Court
of British Columbia 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. A copy of the Initial Order and other
information is available on the Monitor's website at
www.insolvencies.deloitte.ca/en-ca/otsogoldcorp.
Trading in the common shares of the Company on the TSX Venture
Exchange (the "TSXV") remains 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.
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 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.
