The Celsius network initiates financial restructuring to stabilize the business and maximize value for all stakeholders

The company submits a voluntary application for protection under Chapter 11

There is ample liquidity and $ 167 million in cash to support the operation

HOBOKEN, NEW JERSEY – (BUSINESS WIRE) – The Celsius Network (“Celsius” or “Company”) today announced that it has voluntarily submitted a Chapter 11 application to allow the Company to continue operating and undergo comprehensive restructuring that maximizes value for all stakeholders. To implement the reorganization, the Company and some of its subsidiaries have filed voluntary reorganization requests under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the New York Southern District (the “Court”).

Members of the Select Committee of the Board of Directors commented: “Today’s notification follows a difficult but necessary decision by Celsius last month to suspend payouts, swaps and remittances on his platform to stabilize business and protect customers. Without this suspension, accelerating payouts would allow some clients – those who acted first – to receive the full payout, while others would have to wait for the firm to understand the value of illiquid or long-term assets to receive a return. ”

It’s the right decision for our community and our company, ”said Alex Mashinsky, Celsius Co-Founder and CEO. “We have a strong and experienced team to guide Celsius through this process. Looking back, I am sure we will recognize this as a key moment in the history of Celsius, a moment where decisive action with confidence served the community and strengthened the company’s future. ”

Celsius will continue its activities

Celsius has $ 167 million in cash, which provides sufficient liquidity to support some operations during the restructuring process.

To ensure a smooth transition to Chapter 11 bankruptcy proceedings, Celsius filed a number of standard applications with the court to allow the company to continue its normal business. These “day one” requests include demands to pay employees and continue their services without interruption, which the Company expects to be approved by the court. Celsius, this time, is not trying to make withdrawals possible by customers. Customer claims are dealt with in accordance with Chapter 11 of Disputes.

New directors provide additional leadership skills and know-how

David Barse is the founder and CEO of XOUT Capital, an index company, and DMB Holdings, a private family office. Barse previously served for 25 years as CEO of Third Avenue Management, a pioneer of bottom-up fundamental investment in deep-value and distressed investment sectors.

Alan Carr is an investment professional with over 25 years of experience in building businesses, conducting complex restructurings, and protecting and creating stakeholder value. Carr is the founder and managing member of Drivetrain, LLC, a professional trust service company.

Counselor

Kirkland & Ellis LLP acts as solicitor, Centerview Partners as financial advisor and Alvarez & Marsal as restructuring advisor to Celsius.

Additional information on the restructuring process

Additional information on filing for Chapter 11 bankruptcy, including court papers, is available at https://cases.stretto.com/celsius. Interested parties with questions may contact Stretto, the Company’s Claims Agent, at +1 (855) 423-1530 (USA) or +1 (949) 669-5873 (International) or by email to celsiusinquiries @ stretto. com.

About degrees Celsius

Celsius is based on the belief that financial services should only do what is in the best interest of customers and the community. Celsius is a blockchain-based platform where membership provides access to specialized financial services not available through traditional financial institutions. Visit www.celsius.network for more information.

Forward-looking statements

Statements made in this announcement may contain certain forward-looking statements about the Company which are based on the beliefs of the management of the Company and on assumptions and information currently available to the management of the Company. By their nature, forward-looking statements involve significant risk and uncertainty. These forward-looking statements include, without limitation, statements regarding the Company’s business prospects, future events, trends and conditions in the industry and geographic markets in which the Company operates, its strategy, plans, goals and objectives, its ability to control costs, and on prices, volumes, operations, margins, general market trends, risk management and exchange rates.

Where in this edition the words “anticipate”, “believe”, “may”, “estimate”, “expect”, “future”, “intend”, “may”, “should”, “plan”, “project”, ” Purpose “,” “should”, “will”, “will” and similar expressions when used in reference to the Company or its management are intended to identify forward-looking statements. These forward-looking statements reflect the Company’s views as of the date they are issued with respect to future events and are not guarantees of future performance or development. We expressly inform you that there are known and unknown risks associated with relying on forward-looking statements. Actual results and events may differ materially from the information contained in the forward-looking statements. This is due to a number of factors, including changes in laws, rules and regulations relating to all aspects of the Company’s operations, general economic, market and business conditions, including capital market developments, changes or volatility in interest rates, exchange rates, share prices or other rates or prices, the activities and development of the Company’s competitors, and the impact of competition in the insurance industry on the demand for and price of the Company’s products and services, various business opportunities that the Company may or may not use, changes in population growth and other demographic trends, including mortality rates, morbidity and longevity, levels of persistence, the firm’s ability to identify, measure, monitor and control risks in the company’s operations, including the ability to manage and adapt its overall risk profile and risk management practices, the ability to appropriately value products and services, and reserve for future payouts and insurance claims as well as the season these fluctuations and factors beyond the Company’s control. Subject to the requirements of the listing rules, the Company does not intend to update or otherwise amend such forward-looking statements, whether as a result of new information, future events or otherwise. As a result of these and other risks, uncertainties and assumptions, the future events and circumstances referred to in this document may not occur as foreseen by the Company or not at all. Therefore, do not rely on any forward-looking information or statements. Any forward-looking statements in this release are qualified by reference to the cautionary statements in this section.

The official and authorized version is the source language in which the original text is published. Translations will be included for better understanding. Only the language version that was originally published is legally valid. Therefore, compare the translations with the original language version of the publication.

Communication

Lisa Hernandez Gioia

C Street Advisory Group

celsius@thecstreet.com
Phone: (202) 556-1389

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