Toronto, Ontario--(Newsfile Corp. - October 9, 2024) - SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a global cannabis consumer packaged goods company with a diversified portfolio of popular brands, today announced that it has entered into a waiver and support agreement (the "Support Agreement") with, among others, the secured lenders (the "Lenders") under the Company's credit and guaranty agreement dated November 15, 2021, as amended (the "Credit Agreement") given the upcoming maturity date under the Credit Agreement of November 15, 2024 (the "Maturity Date").
Pursuant to the Support Agreement, the Lenders have agreed to a standstill and to not take any steps under the Credit Agreement, related guarantees and security documents until the earlier of: (i) the Maturity Date, and (ii) the occurrence of certain specified termination events, in exchange for a payment of US$1.75 million and enhanced reporting covenants from the Company during the term of the standstill period. The Company does not anticipate being able to repay amounts owing under the Credit Agreement at the Maturity Date.
In light of this and in advance of the Maturity Date, the Company's board of directors (the "Board") and management have been working with their advisors to carefully consider the current financial condition of, and all available alternatives available to, the Company and its subsidiaries. The Board has approved entering into the Support Agreement, which also provides for the potential sale, liquidation and/or wind down of the Company's existing operations and assets (the "Process"). The Company has engaged B. Riley Farber Inc. to act as an advisor to the Company and to help facilitate and assess these steps. The Company will provide additional details as the Process progresses in accordance with a plan to be agreed upon with the Lenders.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is an industry leader in branded cannabis consumer packaged goods, with a diversified portfolio of five distinct brands and products distributed across the U.S. Operating in 13 legal cannabis markets nationwide, SLANG specializes in acquiring and developing market-proven regional brands, as well as launching innovative new brands to seize market opportunities and match evolving consumer tastes. Its product pipeline from uniquely positioned and scalable brands like O.pen, Alchemy Naturals, Ceres, and Firefly have a proven track record of success with the brands consistently ranking among the top performers in the states where SLANG operates. Learn more at slangww.com.
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Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements in respect of the provisions and milestones under the Support Agreement, the upcoming Maturity Date and the ability of the Company to repay amounts owing under the Credit Agreement, and the potential sale, liquidation and/or wind down of the Company's existing operations and assets.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to risks related to the Company's ability to pay amounts owing under the Credit Agreement, the Company being unable to complete a Process acceptable to the Lenders, the future actions and co-operation of the Lenders, the ability of the Company to maintain relationships with suppliers, customers, employees, shareholders and other third parties, regulatory risks, changes in laws, regulations and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's management's discussion and analysis for the year ended December 31, 2023 and other disclosure documents available on SEDAR+ at www.sedarplus.ca. SLANG is not under any obligation, and expressly 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 expressly required by applicable law.
Reader Advisory
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Company Contact Mikel Rutherford, CFO 833-752-6499
