Orbite Reports Second Quarter 2017 Results

MONTRÉAL, QUÉBEC--(Marketwired - July 28, 2017) - Orbite Technologies Inc. (NEX:ORT.H) ("Orbite", or the "Company") reports its financial and operating results for the second quarter ended June 30, 2017.

SECOND QUARTER HIGHLIGHTS

Summary of Operations

On March 31, 2017, Orbite announced that material issues had been encountered with the electrical heating system of the supplied calcination equipment at the Company's high-purity alumina ("HPA") plant. These issues were equipment related and not process related, the Orbite process having been previously proven with the production of HPA up to that date. The Company also announced that it had a solution to solve these issues, which required additional external capital costs and time to implement. Accordingly, the Company announced the suspension of its operations at its HPA plant, the anticipated default under the Company's credit facilities, and the ensuing existence of material uncertainty about the Company's ability to continue as a going concern.

On April 3, 2017, the Company filed a Notice of Intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act ("BIA"). Following this announcement, the Toronto Stock Exchange (the "TSX") suspended trading of the Company's securities and commenced a delisting review as to whether Orbite continued to meet the TSX listing requirements. Orbite's securities were de-listed effective as of the close of business on May 16, 2017 for failure to meet such listing requirements.

On May 1, 2017, the Company announced it successfully migrated from creditor protection under the BIA to protection under the Companies' Creditors Arrangement Act ("CCAA") and the initial order provided for a stay of all proceedings ("Stay Period") until May 29, 2017. It also announced that:

• Following a meeting with its calcination equipment provider, both parties had agreed to set up a task force approach and action plan to resolve the issues identified with the calcination equipment in the most expeditious fashion possible;
• Investissement Québec and Canada Economic Development (as announced on May 5, 2017) both confirmed they intended to maintain the loan agreements in place under the current terms and were willing to support Orbite in its restructuring efforts;
• The Cap-Chat plant was now under care, maintenance and control and in an effort to further limit its cash outflows approximately 39 full time employee equivalents, out of 81, were temporarily laid-off.

On May 5, 2017, the Company announced it had entered into an amendment to the credit facilities with MidCap Financial ("MidCap") which essentially pushed back the Company's obligations under the credit facilities into early 2018, in return for the release to MidCap of the USD 3 million in restricted cash, to be applied to the partial repayment of one of the term loans and the monthly debt service payments until January 1, 2018. The amendment also provided for the forbearance by MidCap from exercising its rights and remedies under the credit facilities, provided certain conditions are met.