Nemaska Lithium is Granted Court Approval of the Sale Proposal from Orion Mine Finance, Investissement Québec and The Pallinghurst Group

MONTRÉAL, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Nemaska ​​Lithium Inc. (“Nemaska Lithium” or the “Corporation”) announces today that the Corporation, Nemaska Lithium Whabouchi Mine Inc., Nemaska Lithium Shawinigan Transformation Inc., Nemaska Lithium P1P Inc. and Nemaska Lithium Innovation Inc. (collectively, the “Nemaska Entities”) have obtained an approval and vesting order (the “Approval and Vesting Order”) from the Superior Court of Québec (Commercial Division) (the “Court”) issued in connection with the proceedings under the Companies’ Creditors Arrangement Act (the “CCAA”).

The Approval and Vesting Order approved the previously announced transactions (collectively, the “Transaction”) contemplated in the sale proposal structured as a credit bid from a group made up of the Corporation’s largest secured creditor, Orion Mine Finance (“Orion”), Investissement Québec and The Pallinghurst Group, acting through a new entity named Quebec Lithium Partners (The Pallinghurst Group collectively with Investissement Québec being hereinafter, the “Sponsors”). Pursuant to the Transaction, the Sponsors are acquiring, on a 50-50 basis, all of the issued and outstanding shares of an entity resulting from the amalgamation of the Nemaska Entities, which will itself emerge from the CCAA proceedings and subsequently be amalgamated with entities currently controlled by Orion to form the entity that will operate the business of the Corporation (“New Nemaska Lithium”). New Nemaska Lithium will apply to the Canadian securities regulatory authorities for a decision that, following the completion of the Transaction, it would cease being a reporting issuer under applicable Canadian securities laws.

The Approval and Vesting Order also approved the implementation of a reorganization of the Nemaska Entities that involves: (a) the incorporation of two new entities (collectively, “Residual Nemaska Lithium”) to ultimately hold certain excluded liabilities of the Nemaska Entities, certain excluded cash of the Corporation on hand at closing, subject to certain adjustments (the “Residual Cash”), and certain excluded assets (the “Excluded Assets”), and (b) the exchange of the shares of the Corporation, on a one-for-one basis for common shares of Residual Nemaska Lithium (the “Exchange”), that will result in Residual Nemaska Lithium becoming a successor reporting issuer under applicable Canadian securities laws.