Dynamic Technologies Obtains Amended and Restated Order for CCAA Protection and Approval of Sales and Investment Solicitation Process
March 17 2023 - 7:00AM
Dynamic Technologies Group Inc. (NEX: DTG.H, OTC:ERILF) (“Dynamic”,
“Company”, “we” and “our”) announces that, further to the initial
order for creditor protection announced in a news release dated
March 9, 2023, March 16, 2023 the Company obtained an amended and
restated initial order for creditor protection (the “AR Initial
Order”) from the Court of King’s Bench of Alberta (the “Court”)
under the Companies’ Creditors Arrangement Act (the “CCAA”). The AR
Initial Order provides for a stay until May 26, 2023 (the “Extended
Stay Period”) of creditor claims and proceedings of the Company and
its subsidiaries, Dynamic Attractions Ltd., Dynamic Entertainment
Group Ltd., Dynamic Structures Ltd. and Dynamic Attractions Inc.
(“Subsidiaries”). The AR Initial Order also approved a sales and
investment solicitation process (“SISP”), which is scheduled to
commence immediately.
ARIO and SISP Process
The AR Initial Order authorizes and directs FTI
Consulting Canada Inc., as the court-appointed monitor (the
“Monitor”) to, among other things, proceed with implementing a SISP
in respect of the Company and the Subsidiaries’ business. The SISP
is intended to solicit interest in, and opportunities for, a sale
of, or investment in, all or part of the Company and the
Subsidiaries’ assets and business operations. This may include one
or more of a restructuring, recapitalization or other form of
reorganization of the business and affairs of all or part of the
Company, or a sale of all, substantially all, or a portion of the
Company’s assets and business operations as a going concern or
otherwise.
In order to participate in the SISP and obtain
access to a virtual data room and other information, interested
parties must comply with the terms and conditions set forth in the
AR Initial Order and other related documents, which are available
on the Monitor’s website at:
http://cfcanada.fticonsulting.com/dynamicgroup.
Parties interested in participating in the SISP
should contact Robert Kleebaum of FTI Consulting Canada Inc. at the
following addresses:
robert.kleebaum@fticonsulting.com 1 403 454
6035
Interested parties who wish to submit a bid must
deliver a non-binding letter of intent to the Monitor and the
Company in accordance with the SISP by no later than 5:00 p.m.
(Calgary time) on April 28, 2023 (the “Phase 1 Bid Deadline”). The
Monitor and the Company will assess the letters of intent received
on or before the Phase 1 Bid Deadline and may select certain
bidders to proceed to the second phase of the process (“Phase 2”).
The Phase 2 deadline is May 26, 2023. Any transaction that may
ultimately be consummated by the Company and or its Subsidiaries
will be subject to the approval of the Court in the CCAA
proceedings.
At this time there is no certainty as to the
outcome of the SISP. Accordingly, it is unclear whether or not
there will be any value remaining for holders of Dynamic’s shares
at the conclusion of the SISP.
The AR Initial Order also includes, in addition
to the Extended Stay Period and approval of the SISP: (i) an
increase to the administration charge (the “Administration Charge”)
of up to $750,000 over the assets of the Company and its
Subsidiaries for the fees of the Monitor and its legal counsel and
the legal counsel to the Company and its Subsidiaries, and (ii) an
increase to the interim financing charge (“Interim Lender’s
Charge”) for funding during the CCAA proceedings up to the amount
of $2,600,000.
MLT Aikins LLP is acting as legal counsel to the
Company and its Subsidiaries in connection with the CCAA
proceedings.
Transfer to NEX and Suspension of
Trading
As a result of the CCAA Process, Dynamic’s
listing was transferred to the NEX Board of the TSX Venture
Exchange (the “TSXV”) in accordance with the TSXV’s policies and
procedures effective at the opening on Wednesday, March 15, 2023.
Effective at the opening Wednesday, March 15, 2023, trading in the
shares of the Company was suspended as the Company has failed to
maintain the services of a Transfer Agent in accordance with the
TSXV’s policies and procedures.
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 NEX Board of 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) 949-7227 |
Phone: (204) 589-9301 |
Email:
gnelson@dynamictechgroup.com |
Email:
afrancis@dynamictechgroup.com |
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 sale of the assets and/or business of the Company under
the SISP; (ii) the form or structure of any reorganization of the
Company’s business in connection with the SISP; (iii) the Company’s
emergence from CCAA as a going concern. 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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