Dynamic Technologies Group Provides Corporate Update
February 28 2023 - 7:22PM
Dynamic Technologies Group Inc. (TSXV: DTG, OTC:ERILF) (“Dynamic”,
“Company”, “we” and “our”) with reference to our prior new release
dated August 8, 2022 announces that its USD$16 million senior
secured credit facilities with Promising Expert Limited (“PEL”)
matured on February 28, 2023 (the “PEL Credit Facilities”) and the
Company is currently in default for non-payment of the same. The
default under the PEL Credit Facilities constitutes a cross-default
under the terms of the Company’s USD$2 million subordinated secured
loan with Export Development Canada (“EDC”).
The Company is having ongoing discussions with PEL, who remains
supportive of the Company. Based on those discussions, the Company
does not expect PEL to issue a demand for payment at this time or
to take any immediate steps under the PEL Credit Facilities. Under
the terms of an intercreditor agreement between PEL and EDC, other
than with respect to EDC’s limited ability to take enforcement
action against EDC priority collateral which consists solely of
money, inventories (including any raw material or work in progress)
equipment, intangibles, and records as well as any proceeds thereof
related to a specific project of the Company, EDC must provide
ninety (90) days advance written notice to PEL before accelerating
payment of the EDC loan obligations or commencing an enforcement
action, and only then if PEL is not diligently pursuing its own
enforcement action in good faith.
Guy Nelson, Dynamic’s Executive Chairman and Chief Executive
Officer said, “While we are disappointed that we have not been able
to complete our negotiations for an extension of the PEL Credit
Facilities by February 28, we are grateful to PEL for their
continued support while discussions continue.”
There can be no guarantee that the Company will be successful in
any negotiation, or settlement with its secured lenders with
respect to the rectification of the above-mentioned events of
default. As such, a material uncertainty exists that
casts significant doubt on the Company's ability to continue as a
going concern.
About Dynamic Technologies Group Inc.
Dynamic is a world leader in the design engineering, production,
and commissioning of iconic, media-based attractions and ride
systems for the global theme park industry and popular tourist
destinations. Dynamic leverages its world class, media-based
attraction products and attraction development capability on a
co-venture ownership basis. The Company also applies its
engineering integration and problem-solving skills on special
projects in diversified industries such as alternative energy and
large optical telescopes and enclosures.
Dynamic’s common shares are listed on the TSX Venture Exchange
under the symbol DTG. For more information about the Company, visit
www.dynamictechgroup.com or contact:
Guy Nelson |
Allan Francis |
Executive Chair & CEO |
Vice President – Corporate
Affairs and Administration |
Phone: (416) 366-7977 |
Phone: (204) 589-9301 |
Email:
gnelson@dynamictechgroup.com |
Email:
afrancis@dynamictechgroup.com |
|
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Reader AdvisoryThis news
release contains forward-looking statements, within the meaning of
applicable securities legislation, concerning Dynamic’s business
and affairs. In certain cases, forward-looking statements can be
identified by the use of words such as “plans”, “expects” or “does
not expect”, “budget”, “booked”, “scheduled”, “positions”,
“estimates”, “forecasts”, “intends”, “anticipates”, “believes” or
variations of such words and phrases or state that certain actions,
events or results “may”, “may be”, “could”, “should”, “would”,
“might” or “will”, “occur” or “be achieved”. Such statements
include statements with respect to: (i) the ability of the Company
to successfully complete negotiations with PEL to extend the
maturity date of the PEL Credit Facilities; and (ii) the ability of
the Company to successfully negotiate a settlement with its secured
lenders to rectify the above-mentioned events of default. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. Although Dynamic believes these statements to be
reasonable, no assurance can be given that these expectations will
prove to be correct and such forward-looking statements included in
this news release should not be unduly relied upon. Actual results
could differ materially from those anticipated in these
forward-looking statements as a result of prevailing economic
conditions, and other factors, many of which are beyond the control
of the Company. The forward-looking statements contained in this
news release represent Dynamic’s expectations as of the date
hereof, and are subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities regulations.
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.
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