/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES/
MARKHAM,ON, March 18, 2020 /CNW/ - Nexia Health Technologies Inc. (TSXV-NGH.H) (the "Corporation") announced that it has filed a Notice of Intention to Make a Proposal (the "Notice") pursuant to Part III of the Bankruptcy and Insolvency Act (Canada).
Pursuant to the Notice, A. Farber & Partners Inc. has been appointed as the proposal trustee (the "Trustee") in the Corporation's proposal proceedings (the "Proposal") and will assist the Corporation in its restructuring efforts. This filing follows the Corporation's inability to reach a consensual framework for the restructuring of its obligations to its largest creditor, a former software vendor to the Corporation (the "Claimant").
Since the Corporation's legal dispute update announcement of October 24, 2019 (the "Announcement"), the Corporation and the Claimant have explored alternative frameworks for the restructuring of the obligations owing to the Claimant in order to further explore, among other things, the potential realizable value in the Corporations residual assets. The Claimant also initiated legal efforts in the Ontario courts to permit it to enforce judgment against the Corporation in Ontario, and a court date for such proceedings is expected to occur in late March 2020.
The filing of the Notice has the effect of imposing an automatic 30-day stay of proceedings that will protect the Corporation and its assets from the claims of creditors while the Corporation continues to pursue its restructuring efforts. This 30-day period may be extended with the authorization of the Ontario Superior Court of Justice.
Management will work closely with the Corporation's board of directors and its financial and other advisors and, with the assistance of the Trustee, will initiate a strategic review process in order to maximize the realizable value of the Corporation's residual assets.
There can be no assurance that the strategic process will result in the Corporation securing any financing or realizing any value in the Corporation's residual assets in any transaction or, if a transaction is proposed, that it will be successfully concluded in a timely manner or at all.
Failure by the Corporation to achieve its financing and restructuring objectives through an approved Proposal will result in the Corporation becoming bankrupt.
The Corporation will provide updates on this matter when it becomes aware of new material information.
This release contains forward-looking statements. Forward-looking statements, without limitation, may contain the words believes, expects, anticipates, estimates, intends, plans, or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and actual results could differ materially from those anticipated. 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. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in the Company's filings with Canadian securities regulators (www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nexia Health Technologies Inc.
For further information: Nexia Health Contact: Nexia Health Technologies Inc., Nick Clemenzi, Chief Financial Officer, [email protected], 905-415-3063