Otso Gold receives local creditor protection in Finland and Sweden
Trade symbol: TSX-V: OTSO
TORONTO, December 8, 2021 / CNW / – Otso Gold Corp. (“”Otso“or the”Business“), (TSX-V: OTSO) announced today that they have received orders under applicable insolvency law from local authorities in Finland and Sweden with respect to its significant subsidiaries.
IN Finland, the company’s operating subsidiary Otso Gold Oy, a Finnish limited liability company, was granted a request by the Oulu District Court for an interim injunction under the Finnish Restructuring Act regarding Otso Gold Oy’s application for restructuring. The suspension, which prohibits the repayment and recovery and recovery, whether lawful or otherwise, of existing debts and the recovery of any collateral provided by the company, takes effect immediately. The court has initially granted Otso Gold Oy empty 31 December 2021 to supplement their application with certain additional necessary materials. In addition, i Sweden, Södertörn District Court (Division 4) decided to initiate a reorganization procedure regarding Otso Gold AB and appointed a local trustee. A creditors’ meeting will be held on it December 22, 2021 at Södertörn District Court. The Swedish reorganization procedure will end on March 7, 2022 if a request for an extension is not submitted before this date.
As previously revealed on December 3, 2021, after careful consideration of all available options after careful consultation with its legal and financial advisers, the company’s board decided that it was in the best interests of the company and all its stakeholders to make each of the previous local creditor protection applications and to request the decision ges den December 3, 2021 of the Supreme Court in British Columbia grant protection from creditors under The law on companies ‘creditors’ arrangements (Canada) (“CCAA“) to enable the company to propose an arrangement plan for its creditors. A copy of the original order and other information is available on the Monitor’s website at www.insolvencies.deloitte.ca/en-ca/otsogoldcorp.
Trading in the company’s ordinary shares on the TSX Venture Exchange (the “TSXV“) remains suspended and it is expected that trading in it will continue to be suspended until a review is conducted by TSXV regarding the company’s suitability for listing on TSXV. Should the ordinary shares be delisted after such an examination of TSXV, the Company may apply for listing of the ordinary shares in TSXV: s NEX board or re-listing on TSXV after leaving the CCAA process, as the case may be.
Additional press releases will be provided on an ongoing basis throughout the CCAA process as required by law or otherwise deemed necessary by the Company or the court.
This press release contains forward-looking statements about the company based on current expectations and assumptions from management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements in accordance with applicable Canadian securities laws and other applicable laws or regulations of any other jurisdiction. All statements contained herein that are not statements about historical facts, including statements about our future business results or financial position, business strategy and plans and goals for future business, may be considered forward-looking statements. Specific forward-looking statements in this press release include, but are not limited to: statements regarding: (i) the outcome of the CCAA proceedings, local insolvency proceedings in Sweden and Finland and / or related restructuring proceedings and the timing of such proceedings; (ii) the company’s ability to secure additional financing as part of the CCAA process, local insolvency proceedings in Sweden and Finland or otherwise, and (iii) suspension of ordinary shares trading and review of TSXV regarding the Company’s suitability for listing on TSXV and any results of such review. By their nature, future-oriented statements require that we make assumptions and are subject to inherent risks and uncertainties. You should not rely on forward-looking statements as predictions of future events. We warn our readers of this press release not to rely unnecessarily on our forward-looking statements as a number of factors may cause actual results or circumstances to differ materially from current expectations. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances may differ materially from those described in the forward-looking statements. Please refer to the risks listed in the company’s continuous disclosure documents available on SEDAR (www.sedar.com) under the company’s issuer profile. New risks and uncertainties appear from time to time, and it is not possible for us to anticipate all the risks and uncertainties that may have an impact on the forward-looking statements in this press release. In addition, there is no guarantee that there will be any residual value for shareholders during the CCAA process, nor can there be any guarantee that the CCAA procedure will result in maximizing returns with respect to the company’s and its subsidiaries’ assets. The Company does not intend, and disclaims any obligation, other than as required by law, to update or revise any forward-looking statements either as a result of new information, future events or otherwise.
about the company
Otso Gold Corp. fully owns the Otso Gold Mine near the town of Brahestad in Finland. The Otso gold mine is developed, fully permitted, has all the infrastructure in place, two open pits and is currently on its way to commercial production with a nameplate capacity of 2 million tonnes per year.
Neither the TSX Venture Exchange nor its regulatory service provider (as that term is defined in the TSX Venture Exchange policies) is responsible for the adequacy or accuracy of this release.
SOURCE Otso Gold Corp.
For further information: Dan Andersson, Chief Restructuring Officer, +44 (0) 207 715 5200; For media inquiries, please contact: Jerome Hasler, +44 (0) 203 170 7469, www.otsogold.com