Embattled Sherritt International Corporation (S.TO) on Tuesday provided a further update related to its activities in Cuba, while noting it "faces a number of acute operational, financial and legal difficulties including the ability to comply with its debt covenants."
This comes after the corporation late last week said it was seeking to take the "necessary and most appropriate actions" to definitively address the practical effect of the U.S. administration's May 1, 2026 Executive Order expanding sanctions against Cuba.
In Tuesday's statement it says: "Following further and ongoing consultation with advisors, stakeholders and relevant governmental authorities, and in light of additional information currently available to the corporation, Sherritt is no longer proceeding with the dissolution and disclaimer steps relating to its interests in Cuba as described in the May 15th news release, including the dissolution of the joint venture with General Nickel Company S.A. of Cuba, and will not proceed with its application to the Alberta Court of King's Bench."
It added: "Sherritt is maintaining its suspension of direct participation in joint venture activities in Cuba and will continue to work with stakeholders and advisors to implement appropriate steps to address the Executive Order as soon as practicable, including through ongoing positive engagement with relevant governmental authorities. Sherritt has also been presented on a preliminary basis with a potential value preserving opportunity that the corporation is working closely with its advisors to evaluate. There can be no assurance however that any such steps or transaction will be achieved or achieved in a timely manner. In addition, the timing, structure and terms of any such steps or transaction are complex and not yet final.
"While the Corporation continues to actively consider and engage with stakeholders to address the Executive Order, unless and until these matters are resolved, Sherritt faces a number of acute operational, financial and legal difficulties including the ability to comply with its debt covenants.
"The corporation will continue to provide information on material developments to its shareholders and other stakeholders."
Sherritt is trading at a 52 week low of $0.11.