Oh Boy!!! Aug. 26 - Seeks to Reach Agreement for Extension of Senior Debenture: Although the Company is currently in default towards its obligations, it is negotiating with the lenders to reach agreement on the terms of a new forbearance.
No regulatory authority has approved or reviewed the contents of the information contained in this news release.
Aug. 28 - IIROC Trading Halt - NUR. Reason: At the request of the Company Pending News.
Aug. 31 -Provides Corporate Update: Announce that its wholly-owned subsidiary and operating company Nutaq Innovation, Inc. (""Nutaq"") has ceased its operations in view of filing an insolvency proceeding with the Office of the Superintendent of Bankruptcy under the Bankruptcy and Insolvency Act (Canada).
Further to the Company's news release dated August 26, 2020, the Company has still not reached an agreement to receive a forbearance in connection with its outstanding senior secured convertible debentures (the “Debentures”) and is currently in material default of the Debentures in the principal amount of $2,835,000 plus accrued interest.
In connection with Nutaq’s cease of operation and upcoming filing for insolvency, a total of 33 employees at its head office in Quebec were laid off. Nutaq's liquidity position has deteriorated as a result of various factors, including, but not limited to, negative cash flow from operations, an inability to secure additional sources of financing and increasing pressure to make payments to its creditors.
The Company also announces that all current board members and officers of NuRAN except for Francis Ltourneau have resigned from their respective positions. Mr. Ltourneau has been appointed as CEO and CFO of the Company to fill the vacancy of the departing officers, and continues to explore various options to resolve the working capital deficiency including restructuring, completing an equity or debt financing, or the sale of the Company’s assets.
To meet such funding requirements, the Company may be required to undertake additional equity financing, which would be dilutive to shareholders. Debt financing, if available, may also involve restrictions on financing and operating activities. There is no assurance that such additional financing will be available on terms acceptable to the Company or at all. If the Company is unable to obtain additional financing as needed, it may be required to seek creditor protection. No assurances can be given that the Company will be able to raise the additional funding that may be required for such activities. The Company will provide further updates on the course of action as developments occur.