Nemaska Lithium Completes Share Exchange with Residual Nemaska Lithium

MONTRÉAL, Nov. 25, 2020 (GLOBE NEWSWIRE) -- Nemaska ​​Lithium Inc. (“Nemaska Lithium” or the “Corporation”) announces today that it has completed the previously announced exchange of its common shares, on a one-for-one basis, for common shares of NMX Residual Liabilities Inc. (“Residual Nemaska Lithium”), resulting in Residual Nemaska Lithium having become a successor reporting issuer under applicable Canadian securities laws (the “Exchange”). All issued and outstanding options, warrants and other securities of the Corporation (including securities convertible, exchangeable or exercisable for shares of the Corporation) have also been cancelled for no consideration. The Exchange was effected and completed in accordance with and pursuant to the approval and vesting order of the Superior Court of Québec (Commercial Division) issued on October 15, 2020 (the “Court Order”) in connection with the proceedings under the Companies’ Creditors Arrangement Act relating to the Corporation and the other subsidiary applicants thereto (the “CCAA Proceedings”).

As contemplated by the Court Order with respect to the Exchange, each share certificate (or other evidence of ownership of shares of the Corporation) representing shares of the Corporation are deemed to represent for all purposes the same number of common shares of Residual Nemaska Lithium. Accordingly, shareholders are not required to surrender their share certificates representing shares of the Corporation and no action is required from shareholders to complete the Exchange. In the context of the previously announced transactions structured, in the context of the CCAA Proceedings, as a credit bid from a group that includes the Corporation’s largest secured creditor (the “Transaction”), there is no residual value for shareholders of Residual Nemaska Lithium resulting from the Transaction and the Exchange.

Tax Considerations of the Exchange

The following section provides a general summary of certain Canadian federal tax considerations to beneficial owners of common shares of the Corporation (the “Shares”) who, for the purposes of the Income Tax Act (Canada) (the “Tax Act”) and at all relevant times, are or are deemed to be resident in Canada hold their shares as capital property, deals at arm’s length and are not affiliated with Residual Nemaska Lithium (“Canadian Holders”).