MONTRÉAL, QUÉBEC–(Marketwired – Jan. 30, 2018) – Orbite Technologies Inc. (“Orbite” or the “Company”) (NEX:ORT.H) today provided an update on its continuing efforts to emerge from insolvency protection for the benefit all of its stakeholders.
CCAA Court extends the Stay Period
As announced on October 31, 2017, the Superior Court of Québec (the “CCAA Court”) issued an order pursuant to the Companies’ Creditors Arrangement Act (“CCAA”) providing for the extension of the stay of all proceedings until January 31, 2018 (the “Stay Period”). On January 29, 2018 the CCAA Court granted a motion filed by the Company and issued an order to further extend the Stay Period until March 30, 2018.
Based on the cashflow projections filed by Orbite with the CCAA Court, the Company still expects to have liquidities until the week of April 22, 2018. Accordingly, the Company believes that such order will be beneficial to all stakeholders by giving it the required time and resources to emerge from CCAA protection.
There can be no guarantees that the Company will be successful in its restructuring efforts or will emerge from CCAA protection.
Update on the Calcination Equipment
Orbite reported to the CCAA Court that it continues to work with the calcination equipment supplier’s technical teams very closely to resolve the issues with the calcination equipment and finalize the remediation plan. However, the timelines set forth by the equipment supplier are still not being met by it. Consequently, production activities are now expected to resume in May 2018, subject to raising adequate financing and implementing the contemplated supplier-related solutions.
The Company will provide further updates as developments occur.
Orbite Technologies Inc. is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallée deposit. The Company’s portfolio contains 15 intellectual property families, including 44 patents and 33 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.
Certain information contained in this document may include “forward-looking information”. Without limiting the foregoing, the information and any forward-looking information include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as “may”,” confident”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management’s good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. Risks, uncertainties and other factors that could affect anticipated results and future events also include, but are not limited to, those described in the section of the Management’s Discussion and Analysis (MD&A) entitled “Risk and Uncertainties” as filed on November 28, 2017 on SEDAR, as well as those under the headings “Going Concerns”, Commercial Operation of HPA Plant”, “We will need to raise capital to continue our growth” and “Development Goals and Time Frames” described in the MD&A filed on March 31, 2017.
The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.
VP Business Development
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