VANCOUVER, BC, June 29, 2022 /CNW/ - good natured Products Inc. (the "Company" or "good natured®") (TSXV: GDNP) (OTCQX: GDNPF), a North American leader in plant-based products, today announced that it has entered into an extension agreement dated June 29, 2022 (the "Extension Agreement") with its primary lender in connection with the senior credit agreement dated October 28, 2021 between the Company and its primary lender (the "Senior Credit Facility"). The Extension Agreement relates to the breach of the fixed charge coverage ratio covenant ("FCCR") under the Senior Credit Facility as previously announced in the Company's press releases dated May 9, 2022 and May 12, 2022.
Under the Extension Agreement, the Company's primary lender has agreed to forbear from exercising its enforcement rights with respect to past breaches of the FCCR as at December 31, 2021 and March 31, 2022 for a period of 60 days from the date of the Extension Agreement and has provided a waiver of the FCCR covenant as at June 30, 2022.
The Company is pursuing a refinancing of the Senior Credit Facility during the 60-day period (the "Refinancing"). The Company has signed a non-binding letter of intent with a major U.S. bank and non-binding term sheet with a major Canadian lender with respect to the Refinancing and is currently in due diligence and further negotiations with both entities in pursuing the Refinancing.
The good natured® corporate profile can be found at: investor.goodnaturedproducts.com
About good natured Products Inc.
good natured® is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The Company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products® that use more renewable materials, less fossil fuel, and no chemicals of concern.
good natured® offers over 400 products and services through wholesale, direct to business, and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the Company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis ? Executive Chair & CEO
1-877-286-0617 ext. 113
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "budget," "believe," "project," "estimate," "expect," "scheduled," "forecast," "strategy," "future," "likely," "may," "to be," "could,", "would," "should," "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and the conditional. Examples of forward-looking statements include, among others, statements regarding the Extension Agreement and the Refinancing. All forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
By their nature, forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult to predict and many of which are outside of the Company's control which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is a risk that the Refinancing may not be completed prior to the end of the forbearance period under the Extension Agreement. In such scenario, for clarity the Company would be in default under the Senior Credit Facility.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, general market conditions, the economy and other future conditions. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, among others risks relating to general economic, market and business conditions and unforeseen delays in the realization of the benefits of the Acquisition described in this press release.
The Company considers its assumptions to be reasonable based on currently available information, but cautions the reader that its assumptions regarding future events, many of which are beyond the control of the Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company and its businesses. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, the Company does not undertake to update this information at any particular time.
SOURCE Good Natured Products
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