SWARMIO FILES FOR CCAA PROTECTION

TORONTO, June 22, 2023 /CNW/ - Swarmio Media Holdings Inc. (CSE: SWRM) (OTCQB: SWMIF) (GR: U5U) ("Swarmio" or "the Company"), announces today that further to its press release dated June 21, 2023, the Company and its subsidiaries, Swarmio Inc., and Swarmio Media Inc. (collectively, the "Swarmio Group") has initiated proceedings (the "CCAA Proceedings") in the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA").

The Swarmio Group's application under the CCAA was heard this morning. Following the hearing, the Court granted an order, which, among various other relief: (i) grants a stay of proceedings in favour of the Swarmio Group up to and including July 1, 2023 (the "Initial Stay Period"); (ii) appoints Grant Thornton Limited as Court-appointed monitor of the Swarmio Group (in such capacity, the "Monitor"); and (iii) approves a debtor-in-possession loan to fund the CCAA proceedings and other short-term working capital requirements of the Swarmio Group.  

After careful consideration of all available alternatives and following thorough consultation with legal and financial advisors, the directors of the Swarmio Group determined that it is in the best interests of the Swarmio Group and all of its stakeholders to seek creditor protection under the CCAA.

Swarmio Group is scheduled to return to the Court for a hearing (the "Comeback Hearing") on June 30, 2023 to seek, among other relief, the approval of a sale and investment solicitation to facilitate a transaction that sees the Company emerge from CCAA protection as a going concern. The Company is confident that the protection afforded by the CCAA will be sufficient to allow the Swarmio Group to address its liquidity issues and stabilize operations.

About Swarmio

Swarmio (CSE: SWRM; OTC: SWMIF; GR: U5U) is a technology company focused on deploying its proprietary end-to-end gaming and esports platform, Ember, which enables telcos to monetize their gaming customers. Swarmio has engaged with several telcos that have launched Ember as an add-on service, allowing subscribers to access tournaments, engage in a localized gaming community, challenge friends and influencers, and earn points that can be used to purchase gaming content. Ember is powered by Swarmio's patented Latency-Optimized Edge Cloud ('LEC') technology, which reduces lag and allows gamers to enjoy an optimized gaming experience.

To learn more about Swarmio, please visit:

Swarmio Investor Website (https://ir.swarmio.media)
Swarmio on LinkedIn (https://www.linkedin.com/company/swarmiomedia)
Swarmio on Twitter (https://twitter.com/SwarmioMedia)

Cautionary Statements Respecting Forward Looking Statements and the Offer

This new release contains "forward-looking statements" within the meaning of such statements under the applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "except", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements in this release include statements regarding Swarmio Group's intention to complete proceedings under the CCAA, the Company's intention to effect a liquidation of the Company's assets; and the Company's intention to work closely with the proposed Monitor to develop and implement a process to maximize the value of its assets.. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release, including assumptions based on the Company's publicly disclosed information, and the Company's current financial condition. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Such factors include, among others, the risks identified in the Companies long-form prospectus dated November 10, 2021 (which can be accessed through the Company's profile on www.sedar.com). Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

For further information regarding the CCAA proceedings of the Swarmio Group:

A copy of the Initial Order, if granted, and other information relating to the CCAA proceedings will be available on the Monitor's website at www.grantthornton.ca/swarmio.

Additional enquiries for the Monitor may be directed to Grant Thornton Limited, in its capacity as proposed Court-appointed monitor of the Swarmio Group.

Contact:        David Collins
Telephone:    416-360-5131
Email:           [email protected]

SOURCE Swarmio Media Holdings Inc.