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.