Nemaska Lithium Files for Creditor Protection Under the Companies’ Creditors Arrangement Act

MONTRÉAL, Dec. 23, 2019 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) announced today that its Board of Directors has authorized the Corporation and its subsidiaries to bring an application in the Superior Court of Québec to seek protection from creditors under the Companies’ Creditors Arrangement Act (“CCAA”) to give the Corporation sufficient time to complete its re-financing efforts to allow for the completion of the construction of its Whabouchi project, which are required further to the cost re-assessment previously announced.

After careful consideration of all available alternatives following thorough consultation with its legal and financial advisors, the Board of Directors of the Corporation, following recommendation from its special committee, determined that it was in the best interests of the Corporation and all of its stakeholders to file for an application for creditor protection under the CCAA.

The initial Court order sought is expected to provide a stay of creditor claims and the exercise of contractual rights with a view to provide the necessary protection to continue the Corporation’s ongoing strategic review process under the oversight of the Board of Directors and with the advice of the Corporation’s professional advisors. In this regard, the Corporation anticipates that it may seek the approval of the Court to initiate a formal investor solicitation process to secure additional financing, sell assets, enter into a joint-venture, or a combination thereof, at a subsequent hearing before the Court. This process is intended to generate interest in either the business or the assets of the Corporation, or in a recapitalization of the Corporation, with the goal of maximizing return in respect of the Corporation's assets and creating the foundation of a plan of compromise or arrangement for all stakeholders of the Corporation.

The Corporation will provide a further update on these matters once more information is available.

Trading in the common shares of the Corporation on the Toronto Stock Exchange (“TSX”) is expected to be halted and it is anticipated that the trading thereof will continue to be halted until a review is undertaken by the TSX regarding the suitability of the Corporation for listing on the TSX.

All statements, other than statements of historical fact, contained in this press release including, but not limited to, those relating to the CCAA application and proceedings, operations of the Corporation, liquidity and the ability of the Corporation to meet its obligations constitute “forward-looking information” and “forward-looking statements” within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Certain important assumptions by the Corporation in making forward-looking statements include, but are not limited to, the granting of the initial Court order by the Québec Superior Court and halt of trading on the TSX.