VANCOUVER, BC / ACCESSWIRE / July 17, 2024 / Loop Energy Inc. ("Loop" or the "Company") (TSX:LPEN) today announced the following:
After a thorough and rigorous 18-month process to find strategic alternatives on a going concern basis, the Company has filed a Notice of Intention to Make a Proposal ("NOI") pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada).
The decision to file an NOI was made after careful consideration of all strategic alternatives, its cash position and financing options, its scheduled payments to suppliers, landlords and vendors, and its other operating expenses. The board of directors (the "Board") of the Company determined that it was in the best interests of the Company to file an NOI and obtain creditor protection in order to solicit and consider strategic alternatives.
The NOI is the first stage of a formal process which permits the Company to pursue a restructuring of its affairs. The filing of the NOI has the effect of imposing an automatic stay of proceedings ("Stay") that will protect the Company and its assets from claims and enforcement proceedings of its creditors. The initial Stay period is 30 days and may be extended by subsequent court order. There can be no assurance that the current process will result in a transaction or, if a transaction is undertaken, that it will be successfully concluded in a timely manner, or at all.
The principal purpose of the NOI filing is to create a stabilized environment for the Company and its financial advisors to run an orderly and flexible sale, investment and solicitation process (the "SISP") approved by the Supreme Court of British Columbia (the "Court") with the goal of identifying one or more interested parties that wish to acquire or make an investment in the Company's business or all or some of its assets. The Company has engaged a licensed insolvency trustee (the "Proposal Trustee") to assist with the NOI. The Company is working closely with the Proposal Trustee and its legal advisors on the SISP to best protect stakeholders with the objective to complete the SISP by the end of August 2024.
Sophia Langlois has resigned as a director on the Board. The remaining directors and officers of the Company remain in place.
The Company has requested and the Toronto Stock Exchange has approved an extension to September 9, 2024 for its annual general meeting of shareholders.
Forward Looking Warning
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflect management's current expectations and projections regarding future events. Forward looking information includes statements related to possible proceedings or other actions that Loop might be required to pursue or undertake in the future. Forward-looking information is based on a number of assumptions, including without limitation assumptions with respect to negotiations with third parties and the extent of its financial resources, and is subject to a number of risks and uncertainties, many of which are beyond the Company's control and could cause actual results and events to vary materially from those that are disclosed, or implied, by such forward-looking information. These risks include the failure to conclude a sale or financing transaction with a third party and the risk that the Company will exhaust its financial resources as well as the other risk factors discussed under "Risk Factors" in the Company's Annual Information Form dated March 21, 2024 and in its other disclosure documents. Loop Energy disclaims any obligation to update these forward-looking statements.
Loop Energy Investor and Media Inquiries:
Paul Cataford | investors@loopenergy.com
SOURCE: Loop Energy Inc.
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