Wildpack Beverage Announces Restructuring Transaction and Concurrent Deals to Strengthen Operations

Wildpack Beverage Inc., a leading middle market co-packer of canned goods, has unveiled its plans to complete a restructuring transaction aimed at enhancing its financial position. The proposed Debenture Restructuring Transaction involves the repurchase of $20 million worth of convertible unsecured subordinated debentures, the delisting of the debentures from the TSX Venture Exchange, and the exchange of the remaining outstanding debentures for common shares in the company.

The Repurchased Debentures will either be canceled or assigned to lenders under the Other Sources Loan who choose to accept a pro rata share of the debentures instead of an interest-bearing loan. This move will effectively eliminate all outstanding debentures for Wildpack Beverage. The Common Shares issued as part of the restructuring will be subject to a four-month and one-day hold period as per securities laws.

In addition to the Debenture Restructuring Transaction, Wildpack Beverage plans to undertake several concurrent transactions. The company intends to seek approval for an amendment to its term loan with Sandton Capital Solutions Master Fund V, LP, which will involve increasing the facility size by $4 million, amending conversion terms, and extending the loan term. The interest rate on the loan will also be increased to 15% per annum.

To further strengthen its financial position, Wildpack Beverage aims to raise $1.325 million of debt from other sources. Lenders of the Other Sources Loan will have the option to provide an interest-bearing loan or accept their pro rata share of the Repurchased Debentures. The company also plans to conduct a rights offering, offering shareholders the opportunity to subscribe for approximately 240 million Common Shares at a price of $0.0148 per share.

The Debenture Repurchase will be funded through a portion of the indebtedness under the Amended Sandton Loan and the Other Sources Loan. Meanwhile, a portion of the proceeds from the Rights Offering will be used to repay the indebtedness incurred under these loans. The completion of the Debenture Restructuring Transaction is subject to customary closing conditions, approval from the TSX Venture Exchange, and necessary approvals from the company’s shareholders and debenture holders.

Wildpack Beverage is a leading provider of beverage manufacturing and packaging services to the middle market. With a focus on sustainable aluminum can filling, decorating, packaging, and logistics, the company operates out of five facilities across the United States. Its commitment to digital innovation and green ready-to-drink packaging has positioned it as a trusted partner for brands nationwide.

The proposed restructuring and concurrent transactions highlight Wildpack Beverage’s dedication to strengthening its financial position and optimizing its operations. By repurchasing debentures, amending loan terms, and raising additional debt, the company aims to enhance its liquidity and support its growth strategies. These initiatives demonstrate Wildpack Beverage’s proactive approach to navigating the evolving market landscape and solidifying its position as a leader in the industry.

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