Dynamic Technologies Announces Termination of Sales and Investment Solicitation Process and Extension of Stay
May 26 2023 - 4:01PM
Dynamic Technologies Group Inc. (NEX: DTG.H, OTC:ERILF) (“Dynamic”
or “Company”) announces that, further to the previously announced
sales and investment solicitation process (the “SISP”) under the
Companies’ Creditors Arrangement Act (the “CCAA”), on May 9, 2023,
FTI Consulting Canada Inc., the court-appointed monitor (the
“Monitor”) terminated the SISP to enable Dynamic and its
subsidiaries, Dynamic Attractions Ltd., Dynamic Entertainment Group
Ltd., Dynamic Structures Ltd. and Dynamic Attractions Inc.
(collectively, the “Subsidiaries”) to finalize the definitive
agreements for the sale transaction (the “Sale Transaction”)
contemplated by the high value letter of intent provided by
Promising Expert Limited.
The closing of the proposed Sale Transaction is
subject to certain standard conditions, including the negotiation
of definitive agreements and the approval of the Court of King’s
Bench of Alberta (the “Court”). There can be no assurance that the
proposed Sale Transaction will be successfully concluded in a
timely manner or at all.
In addition, pursuant to the order granted by
the Court May 26, 2023 (the “Order”), the Court approved the
extension of the previously announced stay of proceedings to July
28, 2023 to permit the Company sufficient time to negotiate the
definitive agreements for, and to complete, the Sale
Transaction.
MLT Aikins LLP is acting as legal counsel to the
Company and its Subsidiaries in connection with the CCAA
proceedings and the proposed Sale Transaction.
Update on U.S. Proceedings
The Company and its subsidiaries have also
engaged legal counsel in the United States and have completed
documents to initiate a filing (the “Chapter 15 Application”) under
Chapter 15 of the US Bankruptcy Code to seek recognition of the
CCAA proceedings in Dallas, Texas. The Chapter 15 Application was
filed on May 17, 2023 and will proceed on June 13, 2023 upon expiry
of the 21 day notice period. The Company is not aware of any
parties that might oppose the Chapter 15 Application.
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 anticipated closing of
the Sale Transaction; (ii) the anticipated negotiation of a
definitive agreement for the Sale Transaction, (iii) the
anticipated approval of the Sale Transaction by the Court, (iv) the
expectation that the Chapter 15 Application will proceed on June
13, 2023 upon expiry of the 21 day notice period, and (v) the
expectation that no person will oppose the Capital 15 Application.
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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