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Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) has provided an update on its proposed Debenture Restructuring Transaction. Key points include:
1. The company entered a Third A&R Loan Agreement with Sandton, increasing the facility by US$4 million and extending the term to 2027.
2. Wildpack received Additional Funding of US$9.6 million from Sandton between June and October 2024.
3. The company plans to repurchase Debentures worth $20 million for $2 million cash and exchange remaining Debentures for Common Shares at $0.10 per share.
4. Wildpack is securing Other Sources Loans totaling $2 million to fund the Debenture Repurchase.
5. A Rights Offering is proposed to raise $3.55 million through a prospectus offering.
The company has received various approvals and is proceeding with the closing of these transactions.
Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) ha fornito un aggiornamento sulla sua proposta di Operazione di Ristrutturazione dei Debentures. I punti chiave includono:
1. L’azienda ha stipulato un Terzo Contratto di Prestito A&R con Sandton, aumentando la disponibilità di 4 milioni di dollari USA e estendendo il termine fino al 2027.
2. Wildpack ha ricevuto Finanziamenti Aggiuntivi di 9,6 milioni di dollari USA da Sandton tra giugno e ottobre 2024.
3. L’azienda prevede di riacquistare Debentures per un valore di 20 milioni di dollari per 2 milioni di dollari in contante e scambiare i Debentures rimanenti per Azioni Comun i a 0,10 dollari per azione.
4. Wildpack sta cercando Altri Prestiti per un totale di 2 milioni di dollari per finanziare il riacquisto dei Debentures.
5. È proposta un Offerta di Diritti per raccogliere 3,55 milioni di dollari attraverso un’offerta di prospetto.
L’azienda ha ricevuto varie approvazioni e sta procedendo con la chiusura di queste operazioni.
Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) ha proporcionado una actualización sobre su propuesta de Transacción de Reestructuración de Debentures. Los puntos clave incluyen:
1. La empresa firmó un Tercer Acuerdo de Préstamo A&R con Sandton, aumentando la línea de crédito en 4 millones de dólares estadounidenses y extendiendo el plazo hasta 2027.
2. Wildpack recibió Financiamiento Adicional de 9,6 millones de dólares estadounidenses de Sandton entre junio y octubre de 2024.
3. La empresa planea recomprar Debentures por un valor de 20 millones de dólares por 2 millones de dólares en efectivo y cambiar los Debentures restantes por Acciones Comunes a 0,10 dólares por acción.
4. Wildpack está asegurando Otros Créditos que totalizan 2 millones de dólares para financiar la recompra de Debentures.
5. Se propone una Oferta de Derechos para recaudar 3,55 millones de dólares a través de una oferta de prospecto.
La empresa ha recibido varias aprobaciones y está procediendo con el cierre de estas transacciones.
Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF)는 전환사채 재구성 거래에 대한 업데이트를 제공했습니다. 주요 사항은 다음과 같습니다:
1. 회사는 Sandton과 제3차 A&R 대출 계약을 체결하여 시설을 400만 달러 늘리고 만기를 2027년으로 연장했습니다.
2. Wildpack은 2024년 6월에서 10월 사이에 Sandton으로부터 960만 달러의 추가 자금을 받았습니다.
3. 회사는 2000만 달러 규모의 전환사채를 200만 달러의 현금으로 재구매하고, 남은 전환사채는 주당 0.10달러로 보통주로 교환할 계획입니다.
4. Wildpack은 전환사채 재구매를 위해 총 200만 달러의 기타 대출을 확보하고 있습니다.
5. 355만 달러를 모집하기 위한 우선 청약이 제안되었습니다.
회사는 다양한 승인 절차를 마쳤으며, 이러한 거래의 마무리를 진행하고 있습니다.
Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) a fourni une mise à jour sur sa proposition de Transaction de Restructuration d’Obligation. Les points clés incluent :
1. L’entreprise a conclu un Troisième Accord de Prêt A&R avec Sandton, augmentant la facilité de 4 millions de dollars US et prolongeant le terme jusqu’en 2027.
2. Wildpack a reçu un Financement Supplémentaire de 9,6 millions de dollars US de Sandton entre juin et octobre 2024.
3. L’entreprise prévoit de racheter des Obligations d’une valeur de 20 millions de dollars pour 2 millions de dollars en espèces et d’échanger les Obligations restantes contre des Actions Ordinaires à 0,10 dollar par action.
4. Wildpack sécurise des Prêts d’Autres Sources totalisant 2 millions de dollars pour financer le Rachat d’Obligations.
5. Une Offre de Droits est proposée pour lever 3,55 millions de dollars par le biais d’un prospectus.
L’entreprise a reçu diverses approbations et progresse vers la conclusion de ces transactions.
Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) hat ein Update zu seiner vorgeschlagenen Anleiheumschuldungs-transaktion bereitgestellt. Die wichtigsten Punkte umfassen:
1. Das Unternehmen hat mit Sandton eine Dritte A&R Kreditvereinbarung abgeschlossen, die die Kreditlinie um 4 Millionen USD erhöht und die Laufzeit bis 2027 verlängert.
2. Wildpack erhielt zwischen Juni und Oktober 2024 Zusätzliche Finanzierung in Höhe von 9,6 Millionen USD von Sandton.
3. Das Unternehmen plant, Anleihen im Wert von 20 Millionen USD für 2 Millionen USD in bar zurückzukaufen und die verbleibenden Anleihen gegen Stammaktien zu einem Preis von 0,10 USD pro Aktie zu tauschen.
4. Wildpack sichert sich Weitere Darlehen in Höhe von insgesamt 2 Millionen USD zur Finanzierung des Anleihenrückkaufs.
5. Es wird eine Bezugsrechtsemission vorgeschlagen, um 3,55 Millionen USD durch ein Prospektangebot zu sammeln.
Das Unternehmen hat verschiedene Genehmigungen erhalten und arbeitet an dem Abschluss dieser Transaktionen.
Positive
- Secured additional funding of US$9.6 million from Sandton for working capital
- Increased loan facility by US$4 million through Third A&R Loan Agreement
- Extended loan term to May 23, 2027, for original US$25 million tranche
- Obtained approval for Debenture Repurchase and Shares for Debt Settlement
- Proposing Rights Offering to raise $3.55 million in gross proceeds
Negative
- Increased interest rate on Sandton Loan to 15% per annum
- Additional Funding from Sandton bears 18% interest per annum
- Potential dilution for existing shareholders due to Shares for Debt Settlement
- MMCAP may become a Control Person if Rights Offering is not completed
- Delisting of Debentures from TSXV
VANCOUVER, BC / ACCESSWIRE / October 9, 2024 / 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 release dated July 5, 2024 (the “Previous Release“), 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 multiple components of the Debenture Restructuring Transaction.
Amended Sandton Loan
The Company has entered into a third amended and restated loan agreement dated June 26, 2024 among the Company, through its wholly-owned subsidiaries, and Sandton Credit Solutions Master Fund V, LP (the “Lender“), an affiliate of Sandton Capital Partners, L.P. (“Sandton“), (as amended, restated, joined, supplemented or otherwise modified from time to time, the “Third A&R Loan Agreement“).
The Third A&R Loan Agreement reflects the following principal changes (collectively, the “Amended Sandton Loan“):
(a) increasing the size of the facility under the Sandton Loan by US$4,000,000;
(b) amending the terms of conversion terms of the Sandton Loan such that a portion of the increased facility pursuant to the Amended Sandton Loan in the amount of US$3,500,000, will be convertible into up to 70% of Thirsty Cat LLC (the “Equity Purchase Option“), and the formerly convertible US$25,000,000 tranche of the Sandton Loan will no longer be convertible and will instead be term debt; and
(c) extending the term of the Sandton Loan to May 23, 2027 (in respect of the original US$25,000,000 tranche) and to October 10, 2026 (in respect of the Tranche 2 Loan);
(d) increasing the interest rate under the Sandton Loan to 15% per annum;
(e) waiver of covenants until January 1, 2025; and
(f) interest paid-in-kind to extend until January 1, 2025.
For additional details regarding the Sandton Loan, please refer to the Company’s press releases dated April 19, 2023, October 11, 2023, and December 1, 2023.
The TSX Venture Exchange (the “TSXV“) has approved the Third A&R Loan Agreement and, in accordance with the requirements of the TSXV, the majority of the shareholders of the Company have approved by written consent: (i) the grant of the Equity Purchase Option to the Lender; (ii) and the creation of the Lender as a Control Person of the Company.
The Company received additional funding from Sandton between June 27, 2024, and October 4, 2024, totaling US$9,600,000 (the “Additional Funding”). The Additional Funding, provided as a series of promissory notes, bears 18% interest per annum paid-in-kind, with a maturity date of June 27, 2028. Funding has been used for general working capital purposes and key trade vendor payments.
Debenture Repurchase, Shares for Debt Settlement and Delisting of Debentures
Pursuant to the Debenture Restructuring Transaction, the Company proposed
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to repurchase Debentures in the principal amount of $20,000,000 (the “Repurchased Debentures“) from certain holders representing the majority owners of the Debentures (“Vendors“), in exchange for cash consideration of $2,000,000 (the “Debenture Repurchase“); and
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that the remaining outstanding Debentures be exchanged for Common shares in the capital of the Company (“Common Shares“) at an exchange price of $0.10 per Common Share (the “Shares for Debt Settlement“).
Approvals
The Company has received conditional approval of the TSXV for the Debenture Repurchase, the Shares for Debt Settlement and the delisting of the Debentures listed under the symbols “CANS.DB” and “CANS.DB.A” on the TSXV (the “Delisting“).
In accordance with the requirements of the TSXV, the majority of the shareholders of the Company have approved by written consent the completion of the Debenture Restructuring Transaction.
In accordance with the requirements of the TSXV and the Indenture, the Debenture holders have passed an Extraordinary Resolution by written consent approving: (i) the completion of the Debenture Restructuring Transaction; (ii) the cancellation of the Repurchased Debentures upon completion of the Debenture Repurchase by the Company; (iii) the waiver of Section 6.5 of the Indenture as it pertains to completion of the Rights Offering (as described below); (iv) the completion of the Shares for Debt Settlement in accordance with Section 12.11(l) of the Indenture; and (v) completion of the Delisting of the Debentures following the Shares for Debt Settlement.
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.
Approvals
The Company has obtained TSXV conditional approval of the Other Sources Loans.
Rights Offering
The Company also proposes to conduct a rights offering pursuant to which it will offer rights to its shareholders to subscribe for Common Shares for gross proceeds to the Company of $3,550,000, to be conducted by way of prospectus offering (the “Rights Offering“). A portion of the proceeds from the Rights Offering will be used to repay the indebtedness incurred under the Amended Sandton Loan and the Other Sources Loan.
The Debenture Restructuring Transaction is not conditional upon completion of the Rights Offering. In the event that the Rights Offering is not completed, MMCAP International Inc. SPC (“MMCAP“) will become a Control Person (as defined in the policies of the TSXV) of the Company as a result of the Share Exchange by virtue of owning over 20% of the issued and outstanding Common Shares of the Company.
Approvals
The majority of the shareholders of the Company have approved by written consent the creation of MMCAP as a Control Person of the Company in the event that the Rights Offering is not completed.
Closing
The Company has completed the Amended Sandton Loan and received Additional Funding
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:
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 brands throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of six facilities in Baltimore, Maryland; Grand Rapids, Michigan; Atlanta, Georgia; Longmont, Colorado; Sacramento, California; 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 principal amount of Debentures Wildpack Beverage (WLDPF) plans to repurchase?
Wildpack Beverage plans to repurchase Debentures in the principal amount of $20,000,000.
At what price will Wildpack Beverage (WLDPF) exchange remaining Debentures for Common Shares?
Wildpack Beverage will exchange remaining Debentures for Common Shares at an exchange price of $0.10 per Common Share.
How much Additional Funding did Wildpack Beverage (WLDPF) receive from Sandton between June and October 2024?
Wildpack Beverage received Additional Funding totaling US$9,600,000 from Sandton between June 27, 2024, and October 4, 2024.
What is the new interest rate for the Sandton Loan after the Third A&R Loan Agreement?
The interest rate under the Sandton Loan has been increased to 15% per annum.
How much does Wildpack Beverage (WLDPF) aim to raise through the proposed Rights Offering?
Wildpack Beverage aims to raise gross proceeds of $3,550,000 through the proposed Rights Offering.
