Nemaska Lithium (TSX: NMX) has officially filed for creditor protection following a prolonged period of attempting to acquire capital to continue operations. The firm announced this morning that it has received approval to apply to the Superior Court of Quebec for creditor protection under the Companies’ Creditors Arrangement Act from its board of directors.
Under protection from the CCAA, the firm anticipates to conduct a review of its operations and to seek approval from the courts for a formal investor solicitation process. Under that process, Nemaska aims to source additional financing, sell assets, enter a joint venture, or a combination of those options. The move is required to receive a stay on creditor claims for the assets of the firm.
As a result of seeking creditor protection, trading in Nemaska’s common shares are expected to halt in short order.
The seeking of creditor protection follows layoffs at the firm as Nemaska has sought to conserve capital. In mid November, the firm announced that facility shutdowns were to occur, with operations restarting at its Whabouchi mine project scheduled to occur upon obtaining financing. Such financing has yet to come through however, and the previously announced negotiations with that of Pallinghurst Group appear to have halted based on this mornings news release.
Nemaska Lithium last traded at $0.16 on the TSX.
Information for this briefing was found via Nemaska Lithium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
