Stornoway Diamond Corporation (SWYDF)

[Dick Goblair]

10/07/2019 press release (1):
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SWY 19-21
October 7, 2019
STORNOWAY GRANTED APPROVAL AND VESTING ORDER
Stornoway Diamond Corporation (the “Corporation” or “Stornoway”) announced today that the
Corporation and its subsidiaries, Stornoway Diamonds (Canada) Inc., Ashton Mining of Canada Inc. and
FCDC Sales and Marketing Inc. (collectively, the “SWY Parties”) have obtained an approval and vesting
order (the “Approval and Vesting Order”) from the Superior Court of Quebec (Commercial Division) issued
in connection with the proceedings under the Companies’ Creditors Arrangement Act (“CCAA”).
The Approval and Vesting Order approved the transactions contemplated in the share purchase
agreement (“Purchase Agreement”) entered into as of October 6, 2019 among the SWY Parties, on the
one hand, and certain secured creditors under the bridge financing agreement entered into by the SWY
Parties on June 10, 2019 (collectively, the “Participating Secured Creditors”), on the other hand. Under
the terms of the Purchase Agreement, the Participating Secured Creditors agreed to acquire, through an
entity to be formed for this purpose, substantially all of the assets and properties of the SWY Parties, and
to assume the debts and liabilities owing to the Secured Creditors as well as the ongoing obligations
relating to the operation of the Renard Mine, subject to certain limited exceptions (the “Transactions”).
Closing of the Transactions is expected to occur on or about November 1, 2019 and remains subject to
the satisfaction of certain conditions contemplated in the Purchase Agreement.
Upon conclusion of the Transactions, Stornoway will no longer have any operating assets or active
business.
Deloitte Restructuring Inc. is the court-appointed monitor. Information about the CCAA proceedings,
including the monitor's reports, are available on the monitor's website at
https://www.insolvencies.deloitte.ca/Stornoway.
About Stornoway Diamond Corporation
Stornoway is a Canadian diamond exploration and production company headquartered in Montreal and
owns a 100% interest in the Renard Mine, Québec’s first diamond mine.