GREENSPACE ANNOUNCES AGREEMENTS REACHED FOR DEBT RENEWAL EXTENSIONS WITH ALL CURRENTLY EXPIRED DEBT PROVIDERS
TORONTO, September 27, 2022 /CNW/ – GreenSpace Brands Inc. (“GreenSpace” or the “Company”) (TSXV: JTR), a leader in the organic and plant-based foods industry, announces that it has entered into agreements with certain of the Company’s lenders to renew their soon-to-be-expiring credit facilities with the Company. Debt providers include Pivot Financial I Limited Partnership (“Pivot”), MW1 LLC (“MW1″) and Primary Capital Inc. (“Primary”).
The Company, Pivot and MW1 have agreed to renew their current facilities by June 30, 2023, subject to the usual conditions precedent. Following the renewal of the Pivot debt, the Primary debt was automatically renewed at July 1, 2023.
The Company and Pivot have agreed to maintain the current factoring facility and to increase the term loan available to the Company from its $5,000,000 at $6,000,000. The supplement $1,000,000 will be used to increase the Company’s working capital and for general and administrative purposes. This addition to the term loan may need to be repaid before June 30, 2023based on the results of the Company’s ongoing strategic review, which was announced on June 2, 2022. Both parties have agreed that a renewal fee $60,000 will be paid to Pivot in cash.
In consideration of the renewal of the takeover agreement by the seller of MW1 (“VTB Promissory Note”), both parties have agreed that the amount due to MW1 will be increased by 1% on each of the following dates: (i) September 30, 2022(ii) December 31, 2022and (iii) March 31, 2023.
“Over the past year, our debt partners have recognized the progress we have made in better targeting the business and improving its path to profitability. We are pleased to continue and strengthen our collaboration with each of these business partners,” said Shawn WarrenPresident and CEO of GreenSpace Brands Inc.
ABOUT GREENSPACE BRANDS INC. :
GreenSpace is a North American organic and plant-based food company that develops, markets and sells premium food products to consumers in the fast-growing natural and organic food categories. GreenSpace owns LOVE CHILD ORGANICS, a producer of 100% organic foods for infants and toddlers made with natural, nutrient-dense ingredients, CENTRAL ROAST, a brand of clean snacks with a wide assortment of organic nuts and seeds and GO VEGGIE, one of the pioneers and leaders of the US plant-based dairy market. All brands are 100% owned and sold in a variety of online, natural and retail grocery stores.
For more information, visit www.greenspacebrands.ca and GreenSpace repositories are also available at www.SEDAR.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION:
This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities laws. Forward-looking information is necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties, some of which are beyond GreenSpace’s control, including, but without limitation, the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new laws and regulations, changes or enforcement thereof; critical accounting estimates and changes to accounting standards, policies and methods used by the Company; the occurrence of catastrophic natural and unnatural events and claims resulting from such events; and risks related to COVID-19; and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company’s disclosure materials. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based on management’s opinions and estimates and information available to management as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE GreenSpace Brands Inc.
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