VOTI Detection Inc., and its subsidiary, VOTI Inc., announced the definitive agreement for the sale of specific assets to Rapiscan Holdings, Inc., part of the leading security inspection provider Rapiscan Systems, Inc. This agreement was part of a sale and investment solicitation process under the Bankruptcy and Insolvency Act (Canada). VOTI, currently under financial distress, engaged Stifel GMP as their financial advisor and PricewaterhouseCoopers as the proposal trustee to oversee this strategic asset divestiture.

The transaction, conditional on standard requirements, anticipates closure by December 22, 2022, pending final approval from the Superior Court of Quebec. The court's issuance of a conclusive approval and vesting order will be vital for the deal's completion to the satisfaction of Rapiscan.

Despite moving forward with the asset sale, there remains uncertainty about the successful and timely conclusion of this transaction. Failure to finalize the deal could push VOTI towards a formal bankruptcy assignment.

Osler, Hoskin & Harcourt LLP provided legal advice to VOTI for this transaction, reflecting the complex legal framework and significant stakes involved. The total value of the transaction was not disclosed in the announcement. Further details and updates regarding the proceedings are accessible on the Trustee's designated website.