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.