Wildpack Provides Update Regarding Proposed Restructuring Transaction
Rhea-AI Summary
Wildpack Beverage (TSXV:CANS, OTC:WLDPF) provided an update on its proposed debenture restructuring transaction regarding $45,007,000 in outstanding 8.00% convertible unsecured subordinated debentures. The company is securing Other Sources Loans totaling $2,000,000 to partially fund the Debenture Repurchase.
The company has already secured commitments of $1,730,000 and is working to secure the remaining $270,000. These loans will bear 15% annual interest, increasing to 20% after 120 days, and can be prepaid without penalty. The loans will be secured against the Repurchased Debentures until cancellation.
The closing of the Other Sources Loans and Debenture Repurchase is pending the full $2,000,000 commitment and TSXV approval. The cancellation of Repurchased Debentures, Shares for Debt Settlement, and Delisting will follow the Rights Offering record date.
Positive
- Secured $1,730,000 of the $2,000,000 needed for debenture restructuring
- Loans can be prepaid without penalty
Negative
- High interest rate of 15-20% on Other Sources Loans
- Still needs to secure remaining $270,000
- Pending delisting from exchange
News Market Reaction
On the day this news was published, WLDPF gained 4.69%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, BC / ACCESSWIRE / January 9, 2025 / 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
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
The Company has secured commitments in the aggregate amount of
Closing
The Other Sources Loans and Debenture Repurchase are expected to close once the Company has secured Other Sources Loans in the amount of
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:
invest@wildpackbev.com
or
Elijah Clare
Vice President, Investor Relations
elijah@wildpackbev.com
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.
View the original press release on accesswire.com
FAQ
What is the total amount of Wildpack's (WLDPF) outstanding convertible debentures being restructured?
What is the interest rate on Wildpack's (WLDPF) Other Sources Loans?
How much funding has Wildpack (WLDPF) secured for the Other Sources Loans as of January 2025?
What happens to the Repurchased Debentures after Wildpack's (WLDPF) restructuring?
