Wildpack Announces Execution of Amended Loan Agreement with Sandton Capital Partners

VANCOUVER, BC, / ACCESSWIRE / May 23, 2023 / Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) ("Wildpack" or the "Company") today announces that it has entered into an amended and restated loan agreement (the "A&R Loan Agreement") with Sandton Credit Solutions Master Fund V, LP (the "Lender"), an affiliate of Sandton Capital Partners, L.P. ("Sandton"), via each of its wholly-owned subsidiaries, Thirsty Cat, LLC, Hungry Hippo Company, Wildpack Holdings U.S. Inc., K.T. Murray Corporation, CraftPac LLC, Wild Leaf Holdings U.S. LLC, Vertical Distilling LLC and Wild Leaf Ventures Group Nevada Inc., as borrowers (collectively, the "Borrower"), pursuant to which the Lender will advance to the Borrower a non-revolving term credit facility in the principal amount of USD$25,000,000 (the "Loan"). The A&R Loan Agreement fully amends and restates the loan agreement among the Lender and the Borrower as described in the Company's news release dated April 19, 2023 (the "Original Loan Agreement"), and the principal amount of the Loan includes the USD$12,500,000 advanced to the Borrower pursuant to the Original Loan Agreement. The Loan is convertible into approximately 49% of the equity of Thirsty Cat, LLC ("Thirsty Cat"), as more particularly described below.

Foto: Accesswire

"We are excited for our new partnership with Sandton. They have been great to work with as we focus on capitalizing our business to sustain our current growth rate. We are looking forward to a long, successful relationship," said Mitch Barnard, Chief Executive Officer.

Closing of the transaction is expected on or about May 30, 2023.

The Loan

The Loan is comprised of a 48-month secured term loan in the principal amount of USD$25,000,000, bearing interest at a rate of 13.0% per annum. For any period during which an event of default has occurred under the A&R Loan Agreement and continues uncured or waived, the applicable interest rate shall be increased to an annual rate of 18.0% per annum.

Proceeds from the 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, April 10 and May 16, 2023). The 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. The Company's shares have been pledged as security in connection with the Loan.