Business
Wildpack Announces Closing of Bridge Loan with Sandton Capital Partners and Termination of Convertible Term Loan with Manna Capital Partners
VANCOUVER, BC / ACCESSWIRE / April 19, 2023 / Wildpack Beverage Inc. (TSXV:CANS)(OTC Pink:WLDPF)...
About this update from Wildpack Beverage Inc.
[{"type":"text","content":"Wildpack Announces Closing of Bridge Loan with Sandton Capital Partners and Termination of Convertible Term Loan with Manna Capital PartnersVANCOUVER, BC / ACCESSWIRE / April 19, 2023 / Wildpack Beverage Inc. (TSXV:CANS)(OTC Pink:WLDPF) (\"Wildpack\" or the\"Company\") a leading middle market co-packer of canned goodsannounces the closing of a term loan in the aggregate principal amount of US$12,500,000 (the \"Bridge Loan\") from Sandton Credit Solutions Master Fund V, LP (the \"Lender\"), an affiliate of Sandton Capital Partners, L.P. (\"Sandton\") pursuant to a loan agreement between Sandton and the Company's indirect wholly-owned subsidiaries, as borrowers. Terms of Bridge Loan and Convertible LoanThe Bridge Loan is comprised of a 12-month secured term loan in the principal amount of USD$12,500,000, bearing interest at a rate of 13.00% per annum. All interest accrued during the term of the Bridge Loan will be added to the principal balance and will thereafter accrue interest (such paid in kind interest being referred to as \"PIK\"), for clarity no cash will be paid during the term.Proceeds from the Bridge Loan will be utilized for facility improvements and working capital to support and continue Wildpack's growth trajectory in sales and production (as disclosed in Monthly Corporate Updates press released on January 19, February 10, March 3, and April 10, 2023). The Bridge Loan is secured by a first priority lien on all assets of the Company and its subsidiaries and is guaranteed by the Company and its subsidiaries.Wildpack and Sandton have also executed a term sheet (the \"Term Sheet\") outlining a USD$25,000,000 interest-bearing four-year term loan which would be convertible into 49% of the equity of the Company (the \"Convertible Loan\") to replace the Bridge Loan. The Convertible Loan is to be a four-year secured term loan in the principal amount of USD$25,000,000 (inclusive of the amount advanced under the Bridge Loan), bearing interest at a rate of 13.00% per annum accrued but not payable until after the first year. The Convertible Loan is to be secured by a first priority lien on all assets of the Company and its subsidiaries and is to be guaranteed by the Company and its subsidiaries. The Convertible Loan will be subject to the approval of the TSX Venture Exchange.In the event that the Bridge Loan is not replaced by th...