Vancouver, British Columbia--(Newsfile Corp. - June 28, 2024) - good natured Products Inc. (TSXV: GDNP) (OTCQB: GDNPF) (the "Company" or "good natured®"), a North American leader in eco-friendly food packaging, bio-based plastic extrusion and plant-based products, announced that the Company sought and obtained an order (the "Initial Order") from the Supreme Court of British Columbia Justice (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA"), in order to restructure its financial affairs. The Company and its subsidiaries will file cases under Chapter 15 of Title 11 of the United States Code seeking recognition of the CCAA proceeding within the territorial jurisdiction of the United States to restructure its financial affairs.
After careful consideration in consultation with legal and financial advisors, the board of directors determined that a comprehensive restructuring was in the best interest of the Company and its stakeholders. In light of financial pressures from higher debt servicing costs, reduction in revenue from the Company's Industrial business group, and lower than anticipated orders from a large US Food Producer as outlined in the Company's two most recent quarterly financial results, it was determined that seeking creditor protection under the CCAA would provide the best opportunity to position the Company for future success.
As part of the overall restructuring and as outlined in the Company's Q1 2024 press release dated May 30, 2024, good natured® intends to continue the prioritization of its most growth-oriented and profitable business groups and rigorously review operating capabilities and processes to identify transformative initiatives.
The Company is expected to continue to operate in the ordinary course under the protection of the Initial Order. There are no disruptions anticipated to the products and services that good natured® provides to its loyal customers in both the United States and Canada. The board of directors of the Company will remain in place, and management retains responsibility for the day-to-day operations of the Company, with certain provisions as outlined below.
The Initial Order provides for, among other things: (i) a stay of proceedings in favor of the Company; and (ii) the appointment of Alvarez & Marsal Canada Inc. as monitor of the Company (in such capacity, the "Monitor").
The Company confirms it has a minimum of three directors on its board of directors at the time of the Initial Order. Further, the Company confirms its transfer agent is in good standing as at the date of the Interim Order and good natured® will continue to issue all material information updates as required via a press release and ensure all disclosure requirements under the TSX Venture Exchange ("TSXV") Exchange Policy will be met. As a result of the Company receiving protection under the Companies' Creditors Arrangement Act (CCAA), the Company expects its shares to be transferred to the NEX board of the TSX-V.
Additional information regarding the CCAA proceedings - including all of the Court materials filed in the CCAA proceedings - may be found at the Monitor's website: https://www.alvarezandmarsal.com/goodnatured
The good natured® corporate profile can be found at: goodnaturedproducts.com/pages/investor
About good natured Products Inc.
good natured® is at the forefront of North America's shift toward sustainability, showcasing over 90 plant-based packaging designs and an extensive portfolio of more than 400 products and services. These offerings are purposefully designed to reduce environmental impact by using more renewable materials, less fossil fuel, and eliminating chemicals of concern.
Manufactured locally in the US and Canada, good natured® engineers and distributes a diverse range of bio-based products across various sectors, including grocery, restaurant, electronics, automotive, and pharmaceutical via both wholesale and direct channels.
The Company is dedicated to providing an industry-leading customer experience in order to encourage the transition to renewable alternatives. By making it easy and affordable for businesses to adopt bio-based products and packaging, good natured® aims to empower them to reach their sustainability objectives.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis - Executive Chair & CEO
Contact: 1-604-566-8466
Investor Contact:
Spencer Churchill
Investor Relations
1-877-286-0617 ext. 113
invest@goodnaturedproducts.com
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. Specific forward-looking statements in this press release may include, but are not limited to, statements with respect to the filing by the Company and its subsidiaries of cases under Chapter 15 of Title 11 of the United States Code, the outcome of the CCAA proceedings, the future success, plans and objectives of the Company, the Intended operations of the Company and any disruptions to Its products and services, the board of directors and management of the Company, and the Company's shares being transferred to the NEX board of the TSXV.
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.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections regarding, among other things, future plans and strategies, projections, future market and operating conditions, supply conditions, end customer demand conditions, anticipated events and trends, general market conditions, the economy, financial conditions, sales volume and pricing, expenses and costs, all necessary court orders and approvals are obtained to permit the Company to implement its restructuring plans, and other future conditions which we believe are reasonable as of the current date. Important factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, but are not limited to: delay or failure to receive required approvals with respect to the CCAA proceedings, future capital needs and uncertainty of additional financing, risks relating to general economic, market and business conditions and unforeseen delays in the realization of the Company's plans, risks related to the loss of key manufacturing equipment, capability or facilities, the performance of plant-based materials and the ability of the Company's products and packaging to meet significant technical requirements, changes in raw material supply and costs, labour availability and labour costs, fluctuations in operating results, and other related risks as more fully set out in the Annual Information Form dated April 29, 2024 of the Company and other documents disclosed under the Company's filings at www.sedarplus.ca. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214961
SOURCE: good natured Products Inc.
