Orbite Technologies Inc.

Orbite Technologies Inc.

May 24, 2017 10:44 ET

Orbite Provides Corporate Update

MONTRÉAL, QUÉBEC--(Marketwired - May 24, 2017) - Orbite Technologies Inc. ("Orbite" or the "Company") today provided an update on its continuing efforts to emerge from insolvency protection for the benefit all of its stakeholders.

CCAA Court extends the Stay Period

As announced on May 1, 2017, the Company filed a petition for continuance of the Bankruptcy and Insolvency Act proceedings under the Companies' Creditors Arrangement Act ("CCAA"). The Superior Court of Québec granted the petition and issued an initial order pursuant to the CCAA providing for an initial stay of all proceedings until May 29th, 2017 (the "Stay Period"). On May 23, the Company filed a motion seeking, namely, the extension of the Stay Period and the Superior Court of Québec granted the motion and issued an amended and restated order:

  • extending the Stay Period until August 4, 2017;

  • approving a Key Employee Retention Program ("KERP") in respect of certain employees of Orbite and authorizing a KERP charge against the property of Orbite; and

  • relieving Orbite from its obligation to call the annual meeting of shareholders on or before June 30, 2017 and directing Orbite to call such annual meeting, as the case may be, by January 31, 2018.

The Company believes that such orders will be beneficial to all stakeholders by giving the Company the required time and resources to emerge from CCAA protection. There can be no guarantees that the Company will be successful in its restructuring efforts or will emerge from CCAA protection.

The Company will provide further updates as developments occur.

Listing on the NEX board

On May 19, 2017, the TSX Venture Exchange issued a bulletin confirming the listing of the Company's common shares on the NEX Board under the symbol ORT.H, towards a possible relisting, as a first step, on the TSX Venture Exchange ("TSX-V") when and if the Company emerges from creditor protection and meets the listing requirements of the TSX-V.

However, the common shares will remain suspended from trading until further notice, and there can be no guarantees that the Company will be successful in obtaining the listing of its common shares on the TSX-V or on any other stock exchange.

About Orbite

Orbite Technologies Inc. is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallée deposit. The Company's portfolio contains 15 intellectual property families, including 45 patents and 48 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may"," confident", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. Risks, uncertainties and other factors that could affect anticipated results and future events also include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on May 15, 2017 on SEDAR, including those under the headings "Going Concerns", Commercial Operation of HPA Plant", "We will need to raise capital to continue our growth" and "Development Goals and Time Frames" described in the MD&A filed on March 31, 2017.

The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

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