Urthecast Corp LFDEF

Restructuring Document Center

[WhatTthe69]

UrtheCast FAQ

General FAQs:

Q: What is CCAA?
A: The Companies’ Creditors Arrangement Act (“CCAA”) is federal legislation which allows Canadian Courts to grant a company protection from its creditors for a period of time. The process involves the Court appointment of a Monitor.The Monitor serves as an Officer of the Court and reports to the Court on a regular basis and as directed by the Court. While the future of a company that has filed for CCAA is uncertain,it does not mean that UrtheCastis bankrupt or that it will cease to exist as a going concern in the future.  It is intended that the commencement of proceedings under the CCAA will provide UrtheCast with protection from certain actions that creditors might take to collect funds so that it can develop a plan to restructure its businessand finances.

Q:Is UrtheCast in bankruptcy?
A:No, UrtheCast is in a restructuring phase. This is a legal process that provides the Company with creditor protection until a plan is developed in the consideration of the affected creditors and restructuring possibilities.

Q:What does “restructuring” mean?
A:Restructuring can take many forms including, but not limited to:
•Recapitalizing the Company;
•Selling all or parts of the Company;
•Assigning the liabilities or parts thereof to a third party;and
•Such other undertaking to create value for the stakeholders.

Q: What will happen to UrtheCast?
A:UrtheCast is an ambitious developer of world-first technologies, and organizations like this require access to investor financing to be successful.The financial difficulties UrtheCast has experienced are largely attributable to the extent of funds required to execute onthe commercialization of technologies under development. The Company’s financial difficulties have been further exacerbated by COVID-19, which has negatively impacted sales, the collection of receivables from customers, and the timely completion of milestones in connection with engineering and services contracts.The inability to obtain further financing to sustain operations from UrtheCast’s current lenders is the rationale for UrtheCast’s application for an initial CCAA order.  Creditors of UrtheCast that are owed amounts relating to obligations incurred before September 4,2020, are generally stayed from taking any action to collect debts while UrtheCast seeks to restructure its obligations and resume normal operations.  The UrtheCast brand will still be used while we operate as ‘UrtheCast.’

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