VANCOUVER, BC / ACCESSWIRE / September 27, 2022 / Wildpack Beverage Inc. (TSXV:CANS)(OTCQB:WLDPF) ("Wildpack" or the "Company") a U.S. national beverage co-packer and packaging supplier focused on the aluminum can format, today announces that it has entered into a senior secured revolving credit facility (the "Facility") with Transportation Alliance Bank, Inc. ("TAB Bank"), for up to US$5,000,000 in asset backed financing.
"After a thorough search we are happy to announce TAB Bank as our new senior secured debt partner. We believe TAB Bank aligns with Wildpack's organic growth strategy and look forward to expanding the available loan capacity in the near future." commented Ryan Mason, Chief Financial Officer. "This financing further strengthens our balance sheet and extends our cash runway offering operational flexibility to support our profit focused growth strategy."
The Facility provides for a senior secured revolving credit facility, with a 2-year term, and interest only payments at the variable 30-day Secured Overnight Financing Rate ("SOFR") plus 4.85%. TAB Bank holds a first position security interest in the Company's assets, as well as a guarantee from the Company. The Company has completed an initial draw of US$1,545,000 to repay, in full, existing credit obligations with Fulton Bank. The Company intends to use available proceeds for general working capital purposes.
August Operations
In August 2022, Wildpack achieved 18.9 million can throughput. Wildpack's throughput results, which include cans and can equivalents, were led by a 5% month-over-month ("MoM") increase in cans brokered and an 11% MoM increase in tertiary packaging sales. Can decorating achieved 3.4 million units, can filling achieved 789 thousand Units, and Printing operations achieved 2.3 million units produced. Wildpack's total sales orders for the month of August were 138, with 25 customers making their first purchase with Wildpack. Plant utilization was 20% for the month of August, with production yields for both can decorating and can filling above 90%.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
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Elijah Clare
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elijah@wildpackbev.com
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Fasken Martineau DuMoulin LLP is the legal advisor to Wildpack Beverage Inc.
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About Wildpack
Wildpack is engaged in beverage manufacturing and packaging operating in 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 located 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, and on the OTCQB® Venture Market under the symbol "WLDPF" on February 23, 2022.
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 Wildpack's plans, financial performance and operating performance, anticipated growth in co-packing business, the estimation of revenue, the timing and targets of M&A activity, costs, future capital expenditures, and the success of integration. 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 the successful integration of acquisitions; risks related to operations; risks related to general economic conditions and credit availability, ability to obtain sufficient and suitable financing, actual results of current production and decorating, fluctuations in prices of aluminum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the co-packaging industry; delays in the completion of capex activities, changes in national and local government regulation of manufacturing operations and labour laws in light of the current COVID pandemic, tax rules and regulations, and political and economic developments where Wildpack operates. 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; delays in filing of financial information; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack operates. 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.
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https://www.accesswire.com/717498/Wildpack-Arranges-US-5-Million-Senior-Secured-Credit-Facility-with-TAB-Bank-and-Announces-August-Operational-Update
