MONTREAL, Dec. 23, 2015 /CNW Telbec/ - SENSIO Technologies Inc. ("SENSIO" or "the Company") (TSX VentureTSXV: SIO) announced today that it filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada) ("NOI").
Sensio also announced that it entered into a binding letter of intent with Wi-Lan Inc. and an affiliate ("WiLAN") providing for the sale to WiLAN of the patents and patent applications underlying the existing Exclusive License Agreement among the parties. The sale to WiLAN is subject to approval of the Superior Court of Quebec and is expected to close in January 2016.
Sensio also announced that it obtained a $100,000 secured bridge loan from its President and Chief Executive Officer which is repayable upon the receipt of the proceeds from the sale to WiLAN. The bridge loan will be secured by all of the assets of the Company and will bear an interest rate of 18% per annum. The secured bridge loan was approved by all of the disinterested directors of the Company and is exempt from the requirement to obtain minority shareholder approval under the related party transaction rules of applicable securities legislation.
The transactions follow a review of Sensio's strategic alternatives by a committee of its Board of Directors formed of all non-management directors and advised by Deloitte Restructuring Inc. ("Deloitte"). It was determined by the Board of Directors, at the recommendation of the independent committee, that, as a result of the Company's current financial situation, seeking creditor protection would be in the best interests of the Company and all of its stakeholders. While under protection, the Company will continue with its efforts to pursue strategic alternatives, including pursuing the sale of its remaining assets. The net proceeds from the sale to WiLAN will be directed towards that strategic process. There can be no assurance that the strategic process will result in the consummation of any specific transaction or agreement. The Company does not plan to make future comments about the status of this strategic process unless there are material developments.
Under the protection, it is expected that the Company's 3DGO!TM operations will continue uninterrupted in the ordinary course of business. While under protection, Sensio's Board of Directors maintains its usual role and its management remains responsible for the day-to-day operations of Sensio under the supervision of Deloitte acting as trustee under the NOI. Deloitte will also continue to act as financial advisor with respect to the strategic process.
Sensio's Board of Director wishes to thank Mr. Richard Laberge, co-founder of Sensio, for his years of service to the Corporation. Mr. Laberge will not be replaced and Sensio's Chief Executive Officer will be assuming his corporate secretary function.
Founded in 1999, SENSIO Technologies Inc. (www.sensio.tv) is a pioneer in the field of stereoscopic 3D imaging and of 3D content distribution at home. For over 15 years, SENSIO has been developing, patenting and marketing advanced 3D image processing technology providing superior image quality as well as a simple user friendly experience. Its award-winning technology, SENSIO ® Hi-Fi 3D, can be found in millions of products for the cinema, distribution and consumer electronics markets worldwide.
Today, SENSIO uses its technologies and 3D expertise to deliver its video-on-demand service, 3DGO!TM, the first 3D‑dedicated service offering Hollywood blockbuster movies directly to consumers. SENSIO works with some of the biggest brands in the consumer electronics industry and the film industry to become the destination of choice for 3D movie fans. 3DGO!TM aims to become the largest distributor of 3D content for the consumer market in the world.
Caution Concerning Forward-Looking Statements
Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward looking statements. The Company cautions that there are no assurances that the strategic process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. Trading in the securities of the Company should be considered highly speculative. For more exhaustive information on risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis of SENSIO for the period ended August 31, 2015. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Neither 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.
SENSIO® is a registered trademark of SENSIO Technologies Inc
SOURCE SENSIO Technologies Inc.
For further information: SENSIO Technologies Inc., Éric Choquette, Chief Financial Officer, Tél.: +1 514 846-2022 x17, Courriel: [email protected]