VANCOUVER, BC, Sept. 4, 2020 (UrtheCast PR) – UrtheCast Corp. (TSX: UR) (“UrtheCast” or the “Company”) was granted an initial order (the “Initial Order”) today pursuant to the Companies’ Creditors Arrangement Act (the “CCAA”) by the Supreme Court of British Columbia on application by the Company seeking court protection from its creditors to allow it to pursue a restructuring of its business and property as a going concern.
Pursuant to the Initial Order, Ernst & Young Inc. was appointed as monitor (the “Monitor”) in the CCAA proceeding and will assist the Company in creating a restructuring plan, which is anticipated to include, among other things, (i) immediately commencing a sale and investment solicitation process (a “SISP”), to be overseen by the Monitor, that would seek to monetize the Company’s core and non-core assets, (ii) finalizing interim financing arrangements in order to obtain short term liquidity, (iii) continuing the performance improvement initiatives already commenced to streamline and focus the go-forward operations of the Company and its subsidiaries and (iv) pursuing discussions with potential financiers in order to secure long-term funding for the projects that may form the basis of the UrtheCast Group’s go-forward business (subject to the SISP), all under the supervision of the Court and with the assistance of the Monitor.
The financial difficulties experienced by UrtheCast have been primarily caused by delays in meeting the funding requirements for development of the Company’s UrtheDaily project and delays in completing the engineering contract for the Company’s OptiSAR project. These financial difficulties were further exacerbated by the COVID-19 pandemic, which has negatively impacted financing discussions with investors for the UrtheDaily project, sales, the collection of receivables from customers, and timely completion of milestones under UrtheCast’s engineering and services contracts.
The board of directors of the Company (the “Board”) extensively considered a range of other alternatives and ultimately concluded that there is no reasonable expectation that UrtheCast’s financial condition will improve absent the restructuring proceedings. The Board was unanimous in its decision to file for court protection and explore a restructuring pursuant to the CCAA.
Trading in UrtheCast’s common shares (the “Common Shares”) on the Toronto Stock Exchange (the “TSX”) has been halted and the Company expects that, as a result of having filed for protection under the CCAA, the Common Shares may be delisted from trading on the TSX.
UrtheCast Corp. is a Vancouver-based technology company that serves the rapidly growing and evolving geospatial and geo-analytics markets with a wide range of information-rich products and services.
For more information, visit UrtheCast’s website at www.urthecast.com.