SWARMIO FILES FOR CCAA PROTECTION
TORONTO, June 21, 2023 /CNW/ - Swarmio Media Holdings Inc. (CSE: SWRM) (OTCQB: SWMIF) (GR: U5U) ("Swarmio" or "the Company"), announces today that the Company and its subsidiaries, Swarmio Inc., and Swarmio Media Inc. (collectively, the "Swarmio Group") have received the approval of their directors to make an application for an order for creditor protection (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA").
The Initial Order being sought would include, among other things: (i) a stay of proceedings in favour of the Swarmio Group up to and including July 1, 2023; (ii) the appointment of Grant Thornton Limited as Court-appointed monitor of the Swarmio Group (in such capacity, the "Monitor"); and (iii) approval of a debtor-in-possession loan to fund the CCAA proceedings and other short-term working capital requirements of the Swarmio Group.
After careful consideration of all available alternatives and following thorough consultation with legal and financial advisors, the directors of the Swarmio Group determined that it is in the best interests of the Swarmio Group and all of its stakeholders to seek creditor protection under the CCAA.
The purpose of the CCAA proceedings is to obtain a stay of proceedings that will allow the Swarmio Group to conduct a sale and investment solicitation process ("SISP") and facilitate a transaction that sees the Company emerge from CCAA protection as a going concern. The Company is confident that the protection afforded by the CCAA will be sufficient to allow the Swarmio Group to address its liquidity issues and stabilize operations.
If the Initial Order is granted, the Swarmio Group intends to operate in the ordinary course throughout the CCAA proceedings and while conducting the SISP. Management would remain responsible for the day-to-day operations of the Swarmio Group, under the supervision of the Monitor.
In addition to the foregoing, the Company received the resignation from Elie Jeitani as a director of the Company on June 19, 2023.
Swarmio (CSE: SWRM; OTC: SWMIF; GR: U5U) is a technology company focused on deploying its proprietary end-to-end gaming and esports platform, Ember, which enables telcos to monetize their gaming customers. Swarmio has engaged with several telcos that have launched Ember as an add-on service, allowing subscribers to access tournaments, engage in a localized gaming community, challenge friends and influencers, and earn points that can be used to purchase gaming content. Ember is powered by Swarmio's patented Latency-Optimized Edge Cloud ('LEC') technology, which reduces lag and allows gamers to enjoy an optimized gaming experience.
To learn more about Swarmio, please visit:
Swarmio Investor Website (https://ir.swarmio.media)
Swarmio on LinkedIn (https://www.linkedin.com/company/swarmiomedia)
Swarmio on Twitter (https://twitter.com/SwarmioMedia)
This new release contains "forward-looking statements" within the meaning of such statements under the applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "except", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this release include statements regarding Swarmio Group's intention to complete proceedings under the CCAA; and the Company's intention to work closely with the proposed Monitor to develop and implement a process to maximize the value of the Company. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release, including assumptions based on the Company's publicly disclosed information, and the Company's current financial condition. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Such factors include, among others, the risks identified in the Companies long-form prospectus dated November 10, 2021 (which can be accessed through the Company's profile on www.sedar.com). Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information regarding the CCAA proceedings of the Swarmio Group:
A copy of the Initial Order, if granted, and other information relating to the CCAA proceedings will be available on the Monitor's website at www.grantthornton.ca/swarmio.
Additional enquiries for the Monitor may be directed to Grant Thornton Limited, in its capacity as proposed Court-appointed monitor of the Swarmio Group.
Contact: David Collins
Telephone: 416-360-5131
Email: [email protected]
SOURCE Swarmio Media Holdings Inc.
Vijai Karthigesu, CEO of Swarmio Media, (+1) 647-954-0000; For media-related enquiries, please contact: [email protected]; For investor-related enquiries, please contact: Sean Peasgood, [email protected], Investor's Direct Line: 437-253-9222
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