Xebec seeks protection from its creditors under the Companies’ Creditors Arrangement Act

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MONTREAL–(BUSINESS WIRE)–Xebec Adsorption Inc. (TSX: XBC) (“Xebec“or the”society), a global provider of sustainable gas solutions, announces that it will file a motion today with the Superior Court of Quebec (the “To research“) for a first command (the “Initial order“) under the Companies Creditors Arrangement Act (there “CCAA”) and seek recognition of the original order in the United States under Chapter 15 of the Bankruptcy Code.

The Initial Order is expected to provide for a stay of proceedings and creditors’ claims in favor of Xebec and its wholly-owned Canadian and U.S. subsidiaries to allow the Xebec Group to implement further restructuring initiatives and initiate a court-approved sale and investment solicitation process for soliciting an interest in the sale or investment in all or a portion of the assets and businesses of the Company and its subsidiaries, with the objective of maximizing the value for the Company and its stakeholders.

Decision process

After careful consideration of all available alternatives, the boards of directors of each filing entity in the Xebec Group have determined that it is in the best interests of each filing entity, and their respective stakeholders generally, to seek protection against creditors under the CCAA.

Transactions on the ordinary shares of the Company

Following the filing of the CCAA, the trading of the common shares of the Company on the Toronto Stock Exchange (“TSX”) should be halted and it is expected that trading in them will continue to be halted until a review is undertaken by the TSX regarding the Company’s suitability to remain listed on the TSX.

The Company will provide a further update on these matters once more information becomes available.

Advisors

Counsel to Xebec in the CCAA and Chapter 15 proceedings are Osler, Hoskin & Harcourt LLP and McDonald Hopkins LLC. The Company’s financial advisor is National Bank Financial Inc.

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About Xebec Adsorption Inc.

Xebec is a global provider of clean energy solutions for renewable and low-carbon gases used in energy, mobility and industrial applications. The company specializes in the deployment of a portfolio of proprietary technologies for the distributed production of hydrogen, renewable natural gas, oxygen and nitrogen. By focusing on environmentally friendly gas production, Xebec has helped thousands of customers around the world reduce their carbon footprint and operating costs. Based in Quebec, Canada, Xebec has a global presence with nine manufacturing plants, seventeen cleantech service centers and four sales offices across four continents. For more information, visit www.xebecinc.com.

Caution

All statements, other than statements of historical fact, contained in this press release constitute “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws and are based on expectations and projections as of the date of this press release. Forward-looking statements generally contain words such as “believes”, “expects”, “anticipates”, “continues”, “could”, “indicates”, “plans”, “will”, “intends to “, “may”, “plans”, “timeframes”, “would” or similar expressions suggesting future results or events, although not all forward-looking statements contain these identifying words.

Forward-looking statements in this press release include, but are not limited to, those relating to (i) the CCAA application and proceeding, including the outcome of the initial order filing, (ii) the obtaining Court approval to initiate a official sales and investment solicitation process and (iii) the cessation of trading on the TSX and any review by the TSX of the Company’s eligibility to list on the TSX.

These statements are not promises or guarantees, but involve known and unknown risks and uncertainties that may cause the actual results, level of activity or performance of Xebec to be materially different from any results, level of future business or performance expressed or implied by these forward-looking statements. statements, including the Company’s ability to obtain financing during and after the CCAA process, general economic conditions and other factors which are discussed in greater detail in the Company’s MD&A for the period ended June 30, 2022, the Company’s Annual Information Form and other documents filed by the Company which are available under the Company’s profile on SEDAR at www.sedar.com. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although believed to be reasonable by the Company at the time of such statements, are inherently subject to significant business, economic and competitive changes. uncertainties and hazards. These estimates and assumptions may prove to be incorrect. Further, there can be no assurance that there will be any residual shareholder value under the CCAA process.

If these assumptions prove inaccurate, Xebec’s actual results could differ materially from those expressed or implied by the forward-looking statements. Further, there can be no assurance that the proceedings under the CCAA will result in maximization of return on the assets of the Company and those of its subsidiaries.

The forward-looking statements contained herein are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except to the extent required by law, Xebec undertakes no obligation to publicly update or revise any forward-looking statements contained herein. Readers should not place undue reliance on forward-looking statements.

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