MONTREAL, Oct. 1, 2024 /CNW/ - Valeo Pharma Inc. (TSX: VPH) (FSE: VP2), a Canadian pharmaceutical company, announced today that the Québec Superior Court (Commercial Division) (the "Court") has issued an initial order (the "Initial Order") granting the Company and its subsidiaries VPI Pharmaceuticals Inc. / VPI Pharmaceutiques Inc. and Valeo Pharma Corp. (collectively, the "Company" or "Valeo") protection under the Companies' Creditors Arrangement Act (R.S.C., 1985, c. C-36) (the "CCAA").
After a careful review of all available alternatives and following thorough consultation with its legal and financial advisors, the Company's Board of Directors determined that it was in the best interest of Valeo and its stakeholders to file an application for creditor protection under the CCAA. The Court's approval of the initiation of a formal sale and investment solicitation process is anticipated in order to generate interest in either the business or the assets of the Company, or in a recapitalization of the Company, with the goal of implementing one or more transaction(s), as the case may be. A transaction may be in addition to, or as an alternative to, a CCAA plan of compromise or arrangement, to maximize return in respect of the Company's business and assets.
The Initial Order provides among other things i) a stay of creditor claims and exercise of contractual rights with a view to providing the Company some breathing room to implement its strategic review process and, ii), the appointment of Ernst & Young Inc. to serve as Monitor in the CCAA proceedings and to assist the Company with its restructuring efforts and report to the Court during the restructuring.
In addition, the Company has secured interim debtor-in-possession financing (DIP) from its senior lender in order to allow the Company to continue its operations during the restructuring process and implement the necessary restructuring measures.
The Company's management remains responsible for the day-to-day operations of the Company and that the Board of Directors remains intact. The Company is committed to completing the restructuring process quickly and efficiently.
The Company's CEO, Al Moghaddam, noted: "While this is a challenging period for the Company, we are still committed to the enterprise, and with our senior lender's support, we believe the Company's business can emerge from the CCAA proceedings stronger and more sustainable''.
Trading of the common shares of the Company on the Toronto Stock Exchange (the "TSX") has been halted and it is anticipated that the trading thereof will continue to be halted until a review is undertaken by the TSX regarding the suitability of the Company for listing on the TSX.
Further news releases will be provided on an ongoing basis throughout the CCAA proceedings as required or determined appropriate by the Company. Documents relating to the restructuring process such as the Initial Order, the Monitor's reports to the Court as well as other Court orders and documents shall also be published and made accessible on the Monitor's website: www.ey.com/ca/valeopharma
About Valeo Pharma
Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology and Hospital Specialty Products. Headquartered in Kirkland, Quebec Valeo Pharma has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization. For more information, please visit www.valeopharma.com and follow us on LinkedIn and Twitter.
Forward-Looking Statements
Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: reliance on third-party suppliers and manufacturers, the availability of additional funding, common risks for pharmaceutical products, including product liability claims, insurance and recalls, registration risks in certain jurisdictions, the inability to implement Valeo's strategy to grow the business, dependence on key management personnel and executives, competition, currency fluctuations and the risks, uncertainties and other factors contained in the section entitled "Risk Factors" in Valeo's annual information form dated January 29, 2024, a copy of which is available on Valeo's Sedar+ profile at www.sedarplus.ca
Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect Valeo's business, or if Valeo's estimates or assumptions turn out to be inaccurate. Valeo undertakes no obligation to update publicly, or otherwise revise, any forward-looking statements, whether as a result of new information or future events or otherwise, except as may be required by law. If Valeo does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.
SOURCE Valeo Pharma inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2024/01/c5287.html