MONTREAL, July 10,
2024 /CNW/ - Taiga Motors Corporation (TSX: TAIG)
("Taiga" or the "Company") today announced that Taiga
and its subsidiaries (collectively, the "Taiga Group") have
sought and obtained from the Superior Court of Québec (the
"Court") (i) an order (the "Initial Order") providing
them with creditor protection pursuant to the Companies'
Creditors Arrangement Act (the "CCAA"), and (ii) an
order authorizing the Taiga Group to pursue, under the supervision
of the Court, a formal sale and investment solicitation process
(the "SISP"), which process was initiated prior to the CCAA
proceedings that were commenced today (the "CCAA
Proceedings").
As part of the Initial Order, the Court ordered, among other
things, a stay of proceedings in favour of the Taiga Group for the
initial period provided under the CCAA (the "Stay Period")
and the appointment of Deloitte Restructuring Inc. as monitor of
the Taiga Group during the CCAA Proceedings (in such capacity, the
"Monitor"), and it authorized the Taiga Group to enter into
an interim financing facility (the "DIP Facility") with
Export Development Canada, the Company's most significant secured
creditor. The DIP Facility consists of a non-revolving multiple
draw credit facility of up to a maximum principal amount of
$4.4 million (of which the Court
approved an initial draw and disbursement of $1.0 million in connection with the Initial
Order), which will be used to finance the Taiga Group's working
capital requirements and to implement the restructuring
contemplated in the CCAA Proceedings, including the pursuit of the
SISP.
As disclosed in its various press releases and public filings
leading up to this announcement, the Company has been actively
reducing its cost structure and has been continuously seeking
various alternatives to fund its operations. However, following a
review and after careful consideration of all available
alternatives and in consultation with legal and financial advisors,
the directors of the Company unanimously determined that it was is
in its best interests to commence the CCAA Proceedings, with a view
to pursue the SISP and implement one or more transactions with
respect to the Taiga Group's business and assets.
The board of directors of the Company and management will remain
responsible for the day-to-day operations of the Company under the
general oversight of the Monitor.
It is anticipated that the Toronto Stock Exchange (the
"TSX") will place the Company under delisting review and
there can be no assurance as to the outcome of such review or the
continued qualification for listing on the TSX.
The Taiga Group will be returning before the Court shortly in
order to seek the issuance by the Court of an amended and restated
initial order, which, among other things, is expected to provide
for an extension of the Stay Period until October 4, 2024 and a further required drawdown
of funds under the DIP Facility.
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the
powersports landscape with breakthrough electric off-road vehicles.
Through a clean-sheet engineering approach, Taiga has pushed the
frontiers of electric technology to achieve extreme power-to-weight
ratios and thermal specifications required to outperform comparable
high-performance combustion powersports vehicles. The first models
released include a lineup of electric snowmobiles and personal
watercraft to deliver on a rapidly growing demand from recreational
and commercial customers who are seeking better ways to explore the
great outdoors without compromise. For more information, visit
www.taigamotors.com.
SOURCE Taiga Motors Corp.