Dynamic Technologies Group Provides Corporate Update
TORONTO, Feb. 28, 2023 (GLOBE NEWSWIRE) — Dynamic Technologies Group Inc. (TSXV: DTG, OTC:ERILF) (“Dynamic”, “Company”, “we” and “our”) with reference to our prior new release dated August 8, 2022 announces that its USD$16 million senior secured credit facilities with Promising Expert Limited (“PEL”) matured on February 28, 2023 (the “PEL Credit Facilities”) and the Company is currently in default for non-payment of the same. The default under the PEL Credit Facilities constitutes a cross-default under the terms of the Company’s USD$2 million subordinated secured loan with Export Development Canada (“EDC”).
The Company is having ongoing discussions with PEL, who remains supportive of the Company. Based on those discussions, the Company does not expect PEL to issue a demand for payment at this time or to take any immediate steps under the PEL Credit Facilities. Under the terms of an intercreditor agreement between PEL and EDC, other than with respect to EDC’s limited ability to take enforcement action against EDC priority collateral which consists solely of money, inventories (including any raw material or work in progress) equipment, intangibles, and records as well as any proceeds thereof related to a specific project of the Company, EDC must provide ninety (90) days advance written notice to PEL before accelerating payment of the EDC loan obligations or commencing an enforcement action, and only then if PEL is not diligently pursuing its own enforcement action in good faith.
Guy Nelson, Dynamic’s Executive Chairman and Chief Executive Officer said, “While we are disappointed that we have not been able to complete our negotiations for an extension of the PEL Credit Facilities by February 28, we are grateful to PEL for their continued support while discussions continue.”
There can be no guarantee that the Company will be successful in any negotiation, or settlement with its secured lenders with respect to the rectification of the above-mentioned events of default. As such, a material uncertainty exists that casts significant doubt on the Company’s ability to continue as a going concern.
About Dynamic Technologies Group Inc.
Dynamic is a world leader in the design engineering, production, and commissioning of iconic, media-based attractions and ride systems for the global theme park industry and popular tourist destinations. Dynamic leverages its world class, media-based attraction products and attraction development capability on a co-venture ownership basis. The Company also applies its engineering integration and problem-solving skills on special projects in diversified industries such as alternative energy and large optical telescopes and enclosures.
Dynamic’s common shares are listed on the TSX Venture Exchange under the symbol DTG. For more information about the Company, visit www.dynamictechgroup.com or contact:
|Guy Nelson||Allan Francis|
|Executive Chair & CEO||Vice President – Corporate Affairs and Administration|
|Phone: (416) 366-7977||Phone: (204) 589-9301|
|Email: [email protected]||Email: [email protected]|
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Dynamic’s business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “budget”, “booked”, “scheduled”, “positions”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “may be”, “could”, “should”, “would”, “might” or “will”, “occur” or “be achieved”. Such statements include statements with respect to: (i) the ability of the Company to successfully complete negotiations with PEL to extend the maturity date of the PEL Credit Facilities; and (ii) the ability of the Company to successfully negotiate a settlement with its secured lenders to rectify the above-mentioned events of default. 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. Although Dynamic believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of the Company. The forward-looking statements contained in this news release represent Dynamic’s expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
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.