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Wildpack Provides Update Regarding Proposed Restructuring Transaction
Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF)("Wildpack" or the"Company") a leading middle market co-packer of canned goods, announces, further to its press releases dated July 5, 2024 and October 8, 2024 (the "Previous Releases"), an update regarding the Company's proposed restructuring transaction (the "Debenture Restructuring Transaction") with respect to its outstanding 8.00% convertible unsecured subordinated debentures in the aggregate principal amount of $45,007,000 (the "Debentures"), which were issued pursuant to a convertible debenture indenture between the Company and Computershare Trust Company of Canada (the "Base Indenture") dated as of June 30, 2021, which provides for the issuance of one or more series of unsecured subordinated debentures of the Company, along with supplemental indentures dated August 27, 2021, November 23, 2021 and March 31, 2022 (collectively, the "Indenture").
The Company provides an update below regarding the Other Sources Loan (as defined below).
For additional information regarding the Debenture Restructuring Transaction, please refer to the Previous Releases. Except for any disclosures contained in this news release to the contrary, the information contained in the Previous Releases remains accurate. Capitalized terms not otherwise defined herein have the meanings ascribed thereto in the Previous Releases.
Other Sources Loan
The Company is in the process of obtaining loans totaling $2,000,000 (the "Other Sources Loans"), from certain lenders to the Company which loans will be used to partially fund the Debenture Repurchase. The Other Sources Loans will provide an interest-bearing loan to the Company, bearing simple interest at 15% per annum (increased to 20% per annum after 120 days from the initial advance date), which loans can be prepaid without penalty and secured against the Repurchased Debentures until the Repurchased Debentures are cancelled.
The Company has secured commitments in the aggregate amount of $1,730,000 in connection with the Other Sources Loan. The Company is in the process of securing the remaining $270,000 principal amount partially comprising the Other Sources Loans.
Closing
The Other Sources Loans and Debenture Repurchase are expected to close once the Company has secured Other Sources Loans in the amount of $2,000,000 and is subject to receipt of final approval of the TSXV.
Cancellation of the Repurchased Debentures, the Shares for Debt Settlement and the Delisting are expected to occur following the record date for the Rights Offering and are subject to final approval of the TSXV.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
For further information, please contact us at:
[email protected]
or
Elijah Clare
Vice President, Investor Relations
[email protected]
Advisors
Fasken Martineau DuMoulin LLP is the legal advisor to Wildpack Beverage Inc.
Visit our investor website at:
https://investor.wildpackbev.com
About Wildpack
Wildpack provides beverage manufacturing and packaging to the middle market by providing sustainable aluminum can filling, decorating, packaging, brokering, sleeve/label printing services, and logistics to customers throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of four facilities in Baltimore, Maryland; Grand Rapids, Michigan; Austin, Texas, and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. Wildpack commenced trading on the TSX Venture Exchange under the symbol "CANS" on May 19, 2021.
Cautionary Statement on Forward-Looking Information
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, but not limited to, statements with respect to the Debenture Restructuring Transaction and the associated transactions to be completed in connection therewith. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks including but not limited to risks related to obtaining regulatory approval of the Debenture Restructuring Transaction and the associated transactions to be completed in connection therewith. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements expressed or implied by Wildpack are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack's control, and undue reliance should not be placed on such statements. Although Wildpack has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties related to Wildpack's business, including that Wildpack's assumptions in making forward-looking statements may prove to be incorrect and that Wildpack will not obtain regulatory approval of the Debenture Restructuring Transaction and the associated transactions to be completed in connection therewith. Except as required by securities law, Wildpack does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wildpack Beverage Inc.
H.Thompson--AT