CHEMTRADE ANNOUNCES REVERSE BREAK FEE LAWSUIT DECISION

CHEMTRADE ANNOUNCES REVERSE BREAK FEE LAWSUIT DECISION

TORONTO, Jan. 31, 2025 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced that the Court of Appeal of Alberta today released its decision in Superior Plus Corp. v. Chemtrade Electrochem Inc. The Court of Appeal ruled against Chemtrade.

At trial, the Court of King's Bench of Alberta had ruled in favour of Chemtrade. The lawsuit involved the failed attempt by Superior to acquire Canexus Corporation, prior to Chemtrade's 2017 acquisition of Canexus. The trial court had ruled that pursuant to the Arrangement Agreement between Superior and Canexus, Superior had to pay Canexus (now Chemtrade Electrochem Inc.) a $25 million reverse termination fee because the transaction did not close due to a failure to obtain Canadian and U.S. competition and anti-trust regulatory approvals. Superior appealed this ruling and prevailed at the Court of Appeal. Since the initial decision was subject to appeal, Chemtrade did not record a gain on the successful outcome of the lawsuit and the Court of Appeal ruling will have no impact on Chemtrade's financial results. Chemtrade has 60 days from January 31, 2025 to commence an application for leave to appeal to the Supreme Court of Canada.

"This ruling is extremely disappointing for us", said Scott Rook, President and CEO of Chemtrade. "We are consulting our legal counsel and are considering our options including commencing an application for leave to appeal and continuing our claims against Canexus's legal advisors on the transaction, and their insurers. We will continue to pursue all avenues of recovery available to us."

About Chemtrade

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.

Caution Regarding Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: whether Chemtrade will apply for leave to appeal and whether that will be granted; and whether the claims against Canexus's legal advisors and insurers will be pursued. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and 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 for a variety of reasons, including without limitation the risks and uncertainties detailed under the "RISK FACTORS" section of the Fund's latest Annual Information Form and the "RISKS AND UNCERTAINTIES" section of the Fund's most recent Management's Discussion & Analysis.

Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon.

Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.

SOURCE Chemtrade Logistics Income Fund