Sensio Technologies Inc SNIOF

Sale of patents to WiLan and bankruptcy protection

[Polebrook]

MONTREAL , Dec. 23, 2015 /CNW Telbec/ - SENSIO Technologies Inc. ("SENSIO" or "the Company") (TSX Venture TSXV: SIO) announced today that it filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act ( Canada ) ("NOI"). Sensio also announced that it entered into a binding letter of intent with Wi-Lan Inc. and an affiliate ("WiLAN") providing for the sale to WiLAN of the patents and patent applications underlying the existing Exclusive License Agreement among the parties. The sale to WiLAN is subject to approval of the Superior Court of Quebec and is expected to close in January 2016 . Sensio also announced that it obtained a $100,000 secured bridge loan from its President and Chief Executive Officer which is repayable upon the receipt of the proceeds from the sale to WiLAN. The bridge loan will be secured by all of the assets of the Company and will bear an interest rate of 18% per annum. The secured bridge loan was approved by all of the disinterested directors of the Company and is exempt from the requirement to obtain minority shareholder approval under the related party transaction rules of applicable securities legislation. The transactions follow a review of Sensio's strategic alternatives by a committee of its Board of Directors formed of all non-management directors and advised by Deloitte Restructuring Inc. ("Deloitte"). It was determined by the Board of Directors, at the recommendation of the independent committee, that, as a result of the Company's current financial situation, seeking creditor protection would be in the best interests of the Company and all of its stakeholders. While under protection, the Company will continue with its efforts to pursue strategic alternatives, including pursuing the sale of its remaining assets. The net proceeds from the sale to WiLAN will be directed towards that strategic process. There can be no assurance that the strategic process will result in the consummation of any specific transaction or agreement. The Company does not plan to make future comments about the status of this strategic process unless there are material developments. Under the protection, it is expected that the Company's 3DGO!TM operations will continue uninterrupted in the ordinary course of business. While under protection, Sensio's Board of Directors maintains its usual role and its management remains responsible for the day-to-day operations of Sensio under the supervision of Deloitte acting as trustee under the NOI. Deloitte will also continue to act as financial advisor with respect to the strategic process. Sensio's Board of Director wishes to thank Mr. Richard Laberge , co-founder of Sensio, for his years of service to the Corporation. Mr. Laberge will not be replaced and Sensio's Chief Executive Officer will be assuming his corporate secretary function. Perhaps Hedge can email Richard and let him know it will all be OK next quarter. Not sure if they will lift the halt at this stage given that the company has indicated it will be filing for bankruptcy protection. Sad news for all holders at Christmas time.