MONCTON, NEW BRUNSWICK--(Marketwired - Dec. 4, 2013) - Excellium Inc. (TSX VENTURE:XLM) (the "Corporation" or "Excellium"), a Tier II issuer listed on the TSX Venture Exchange (the "Exchange"), announces that it has filed today with the Office of the Superintendent of Bankruptcy a notice of intention to submit a proposal to its creditors pursuant to the Bankruptcy and Insolvency Act (Canada), appointing Raymond Chabot Inc. as trustee pursuant thereto.
Excellium also announces that it will be filing a motion in the coming days with the Commercial Chamber of the Superior Court of Quebec seeking authorization to sell certain assets relating to its electronic security division (the "Security Division"), which constitute substantially all of Excellium's assets, to Site Integration Plus Inc. ("SIP"), and for a vesting order. The proceeds of the sale will be distributed to the Corporation's secured creditors in accordance with their rank. The motion is expected to be heard by the Superior Court shortly after it is filed.
The foregoing steps are taken as a result of the continuing deterioration of Excellium's precarious liquidity and financial position. Excellium has continued to experience negative operating cash flows, ongoing working capital deficits and cash shortfalls. The sale of the Corporation's Security Division to SIP is further to and consistent with the strategic review process announced by Excellium on August 29, 2013, which was undertaken to maximize value for shareholders and other stakeholders of Excellium, and has resulted from a competitive bid solicitation process overseen by the Corporation's board of directors with the assistance of Raymond Chabot Grant Thornton.
The terms of the sale to SIP, including the consideration payable and other key terms of the transaction, will be disclosed once Court approval for the transaction has been obtained. The terms of the transaction will remain confidential pending Court approval as the disclosure of such information prior to securing such approval would be prejudicial to Excellium and its ability to negotiate an alternative transaction in the event the Court refuses to grant Excellium's motion.
If approved by the Court, closing of the sale of the Security Division to SIP will occur shortly thereafter. Excellium will continue to own and operate its remaining business unit, the Electronic Identification division, and will continue to explore strategic alternatives in that regard. There can be no assurance that such exploration of strategic alternatives will result in a transaction being pursued, entered into or consummated. Excellium does not intend to discuss or disclose developments with respect to this process until its board of directors has approved a definitive course of action.
Excellium will submit a proposal to its creditors in due course and will make further announcements in that regard at the appropriate time.
Excellium is a security company specialized in biometrics identity systems and proactive security management and in the integration of security products for the institutional and industrial markets. Excellium is active in two distinct but complementary lines of business: electronic security, which includes security management, access control and video surveillance, and electronic identification, comprising background checks and biometric identification. Excellium's common shares are listed on the Exchange under the trading symbol "XLM" and its continuous disclosure filings are available on SEDAR at www.sedar.com. For further information about Excellium, please visit its website at www.excellium.ca.
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