MONTRÉAL, Jan. 17, 2025 (GLOBE NEWSWIRE) — Earth Alive Clean Technologies Inc. (TSXV: EAC “ Earth Alive or the Company) announces its intention to complete a sale transaction and ancillary steps (collectively, the Transaction (JO:)) pursuant to a Subscription Agreement, dated January 17, 2025 (the Subscription Agreement), between the Company and 9530-8086 Québec Inc. (the Purchaser). The promoters of the Purchaser comprises a group of investors, including Mr. Erik Bomans (a director of the Company) and Mr. Nikolaos Sofronis (a director and the chief executive officer of the Company). The Subscription Agreement was entered into in connection with the Company’s proceedings under the Bankruptcy and Insolvency Act (Canada) (the BIA) and the related sales and investment solicitation process (the SISP) approved by the Superior Court of Québec (the Court), whereby the Purchaser was selected as the successful bidder under the SISP.
The Transaction, as contemplated under the Subscription Agreement, provides, among other things, that (i) the Purchaser will subscribe for certain common shares in the capital of the Company, (ii) all other equity interest in the Company will be cancelled, for no consideration and (iii) upon closing of the transaction contemplated under the Subscription Agreement, the Purchaser will hold all of the issued and outstanding common shares of the Company, all on and subject to the terms and conditions of the Subscription Agreement. The Subscription Agreement contemplates the assumption of the vast majority of the Company’s indebtedness and the continuation of the employment of all of the Company’s employees.
The Transaction is a result of the implementation of the SISP, is conditional upon the approval of the Court, among other things, and is to be given effect by way of a reverse vesting order and certain ancillary relief, to be granted with the BIA proceedings.
The Company intends to file an application seeking approval of the Transaction in the coming days. Additional information related to the BIA proceedings can be found on the Trustee’s website at the following address: https://www.raymondchabot.com/en/companies/public-records/earth-alive-clean-technologies-inc/.
Anyone interested in obtaining more information about the BIA proceedings, the SISP or the Transaction should contact the proposal trustee (Ayman Chaaban – Chaaban.Ayman@rcgt.com) or the Company’s legal counsel (Gabriel Lavery Lepage “…
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