TORONTO, Oct. 17, 2018 (GLOBE NEWSWIRE) -- Enssolutions Group Inc. (TSXV: ENV.H; OTC Pink Sheets: NSLSF)
(“Enssolutions” or the “Company”), a manufacturer and distributor of environmentally responsible emulsion products for a wide
variety of industrial and commercial market demands, confirmed today that it was not be able to file its unaudited interim
financial statements for the three and six months ended June 30, 2018, and the comparative 2017 second quarter, along with
management’s discussion and analysis and the CEO and CFO certifications in connection therewith (collectively, the “Disclosure
Documents”) by the filing deadline set out under applicable securities laws. The Company had been focusing on capital raising
and cost savings initiatives in light of the financial challenges facing the Company, and, accordingly, was not able to complete
the Disclosure Documents in a timely fashion.
Enssolutions decided not to apply to applicable regulatory authorities for a management cease trade order
(“MCTO”) since it is likely that the Company did not meet all of the eligibility criteria for an MCTO. Enssolutions is currently
thinly traded and thinly traded issuers are generally not eligible for an MCTO pursuant to the requirements of National Policy
12-203 – Cease Trade Orders for Continuous Disclosure Defaults. Accordingly, thereafter, the company was noted in default
on the Ontario Securities Commission’s reporting issuer default list for failure to file the Disclosure Documents, and became
subject to a general cease trade order. The Company anticipates providing further details as to its ability to file the Disclosure
Documents in the future.
Notice of Default under Bridge Loan and Enforcement of Security by Bridge Lender
The Company also announced today that it has received written notice of default from Hermelin Bridge, LLC,
(“Hermelin”), following the expiry of a grace period, for failure to repay its short term secured loan pursuant to which Hermelin
advanced to the Company USD $100,000 at an interest rate of 12% per annum (the “Bridge Loan”). The maturity date of the Bridge Loan
was August 28, 2018. The Bridge Loan was secured by a general security agreement over the assets of the Company and its
subsidiaries. As the Company was not able to repay the Bridge Loan when required, Hermelin is currently taking steps to enforce its
security and take title to the assets of the Company and its subsidiaries. The Company and Hermelin are concurrently negotiating a
lease-back arrangement whereby Hermelin will lease to the Company the assets used in the business for USD $5,000 per month for a
period of approximately three months (the “Lease Term”). The lease-back arrangement may also include an option for Enssolutions
Ltd., the wholly-owned subsidiary of the Company, to re-purchase the assets of the Company located in Canada (the “Purchase
Option”) on terms to be agreed upon. The Company hopes the short-term lease back arrangement may afford the Company additional time
to attempt to seek additional financing. If the Company is not able to source additional financing, it will likely not be able to
exercise the Purchase Option in which case the Company expects to use the time afforded by the Lease Term to wind up its business
operations.
About Enssolutions
Enssolutions manufactures, distributes and applies environmentally responsible products to meet a wide variety
of industrial and commercial market demands. Enssolutions provides engineered environmental solutions for mine tailings control,
process dust and erosion control, granular stabilization, road construction/maintenance and stockpile sealing. It has production
facilities in Hamilton, Ontario and Phoenix, Arizona that service some of North America's largest mining, steel, cement, and road
construction/maintenance companies as well as numerous public road authorities.
For more information on Enssolutions, please visit www.enssolutions.com.
Certain information in this news release constitutes forward-looking statements. When used in this news release,
the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and
similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news
release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of
operations, performance, business projects and opportunities and financial results. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in
market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the
Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary
from those described in this news release, including without limitation those listed above. These factors should not be construed
as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking
statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak
only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these
forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this
cautionary statement.
For Further Information:
Jeremy Schoenfelder
President Chief Executive Officer
Tel: (877) 520-6767
Email: jeremy@enssolutions.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
