Nemaska Lithium Progresses in its Restructuring Efforts Under the CCAA

• The Corporation implements a sale and investor solicitation process
• Settlement of the Court case with holders of the Senior Secured Bonds
• Claims procedure begins in collaboration with the Monitor

MONTRÉAL, Jan. 29, 2020 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) provides today an update on its restructuring efforts under the Companies’ Creditors Arrangement Act (the “CCAA”) initiated on December 23, 2019 under the supervision of the Superior Court of Québec (the “Court”) and PricewaterhouseCoopers Inc., as monitor of the business and financial affairs of the Corporation (the “Monitor”).

Implementation of Sale and Investor Solicitation Process

The Corporation today obtained an order from the Court that approves Nemaska Lithium’s proposed sale and investor solicitation process (the “SISP”) to be conducted in consultation with the Monitor and the Corporation’s financial advisors, National Bank Financial Inc. and Clarksons Platou Securities AS. These financial advisors have significant knowledge of the Corporation’s affairs as well as relevant expertise regarding SISP procedures.

The SISP is intended to generate interest in either a recapitalization of the Corporation, or in the business or its assets, with the goal of maximizing return in respect of the Corporation’s assets and potentially creating the foundation of a plan of compromise or arrangement for all stakeholders of Nemaska Lithium.

The SISP procedures will commence on February 28, 2020 with the transmission of a “teaser” letter to potentially interested parties. The deadline for submission of non-binding letters of intent is April 17, 2020, with a target closing date of the transaction in mid-August 2020. Potential interested parties wishing to obtain more information on the SISP procedures may consult the Monitor’s website: https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lith ....

Settlement of the Court Case with Holders of the Senior Secured Bonds

The Corporation has reached an agreement in principle with the Nordic Trustee to settle its Court case with the holders of the Senior Secured Bonds issued pursuant to the bond offering announced on May 10, 2018 (the “Bonds” and the “Bondholders”). The settlement provides that the Corporation is released of its obligations towards the Bondholders and obtains the discharge of the security which secured the Bonds, in exchange for a lump sum payment of USD 30M.