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Vancouver, British Columbia–(Newsfile Corp. – June 28, 2024) – Good Natured Products Inc. (TSXV: GDNP)(OTCQB: GDNPF)(“Good Natured Products Inc.”)company” or “Good-natured®The North American leader in environmentally friendly food packaging, bio-based plastic extrusion and plant-based products announced that the company has sought and won the order (“First orderJustice of the Supreme Court of British Columbia (“courtCompanies’ Creditors Arrangement Act (“CanadaThe Company and its subsidiaries intend to file an action under Chapter 15 of Title 11 of the United States Code seeking recognition of CCAA proceedings in the territorial jurisdiction of the United States with a view to restructuring their financial position.
“After careful consideration, in consultation with our legal and financial advisors, the Board of Directors has determined that a comprehensive restructuring is in the best interests of the Company and its stakeholders. Given the financial pressures caused by rising debt service costs, declining revenues in our Industrial business group and lower than expected orders from a major U.S. food manufacturer, as outlined in the Company’s two most recent quarterly financial results, it has been determined that seeking creditor protection under the CCAA provides the Company’s best opportunity for future success.”
As part of the overall restructuring, and as described in the Company’s First Quarter 2024 Press Release dated May 30, 2024: Good Character® The company will continue to prioritize its most growth-oriented and profitable business groups and will conduct a rigorous review of its operational capabilities and processes to identify transformation initiatives.
We plan to continue operating normally under the protection of the original orders and do not anticipate any disruptions to the products and services we provide. Good-natured® serves loyal clients in both the United States and Canada. Our board of directors will continue to exist and our management team will remain responsible for the day-to-day operations of our company, subject to certain provisions outlined below.
The Initial Order provided, among other things, (i) a stay of the legal proceedings in favor of the Company, and (ii) the appointment of Alvarez & Marsal Canada Inc. as monitor for the Company (in this capacity, the “monitor().
The Company confirms that as of the date of the Initial Order there are at least three directors on the Board of Directors. The Company further confirms that as of the date of the Interim Order the Transfer Agent is in good standing and good natured® will issue all material updates via press releases as necessary and on the TSX Venture Exchange (“TSXVThe Company intends to have its shares transferred to the NEX Board of the TSX-V pursuant to which it will receive protection under the Companies’ Creditors Arrangement Act (CCAA).
Additional information regarding the CCAA proceedings, including all court documents filed in the CCAA proceedings, can be found on the Monitor’s website: https://www.alvarezandmarsal.com/goodnatured
of Good-natured® company profile can be found at goodnaturedproducts.com/pages/investor.
About Good Natured Products Co., Ltd.
Good Character® is at the forefront of the shift to sustainability in North America, showcasing more than 90 plant-based packaging designs and a broad portfolio of more than 400 products and services that are intentionally designed to reduce environmental impact by increasing the use of renewable materials, reducing fossil fuels and eliminating chemicals of concern.
Made locally in the US and Canada Good Character® The company designs and sells a diverse range of bio-based products across a variety of sectors, including grocery, restaurant, electronics, automotive and pharmaceuticals, through both wholesale and direct sales channels.
We are committed to providing an industry-leading customer experience to accelerate the transition to renewable alternatives by making it easy and affordable for businesses to adopt bio-based products and packaging. Good-natured® aims to help businesses achieve their sustainability goals.
For more information: Good product
On behalf of our company:
Paul Antoniadis – Executive Chair and CEO
Contact: 1-604-566-8466
Investor Contact:
Spencer Churchill
Investor Relations
1-877-286-0617 ext. 113
Email: invest@goodnaturedproducts.com
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.
Caution 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 “anticipates,” “intends,” “plans,” “budget,” “believes,” “projects,” “estimates,” “expects,” “intends,” “projects,” “strategy,” “future,” “likely,” “may,” “will,” “might,” “will,” “should,” “would” or similar references to future periods or the negative or equivalent terminology and terminology typically used in future and conditional statements. Specific forward-looking statements in this press release include, but are not limited to, statements regarding the filing of a lawsuit by the Company and its subsidiaries under Chapter 15 of Title 11 of the United States Code, the outcome of the CCAA lawsuit, the Company’s future success, plans and objectives, disruptions to the Company’s intended business operations and its products and services, the Company’s board of directors and management, and the transfer of the Company’s shares to the Board of Directors of NEX 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 our control that 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.
The forward-looking information contained in this news release is based on the Company’s current estimates, expectations and projections regarding, among other things, future plans and strategies, forecasts, future market and operating conditions, supply conditions, end customer demand conditions, anticipated events and trends, general market conditions, economy, financial condition, sales volumes and prices, expenses and costs, whether all necessary court orders and approvals will be obtained to enable the Company to implement its restructuring plans, and other future conditions that the Company believes to be reasonable at this time. Important factors that could cause actual results or financial position to differ materially from those indicated in the forward-looking statements include, but are not limited to, delays or failure to receive necessary approvals in connection with the CCAA proceedings, uncertainties regarding future capital needs and additional financing, risks related to general economic, market and business conditions and unanticipated delays in the realization of the Company’s plans, risks related to the loss of key manufacturing equipment, capacity or facilities, the performance of plant-based materials and the ability of the Company’s products and packages to meet critical technology requirements, changes in raw material supplies and costs, labor availability and labor costs, fluctuations in operating results, and other related risks more fully described in the Company’s Annual Information Form dated April 29, 2024 and other documents disclosed pursuant to the Company’s filings at www.sedarplus.ca. Readers should not place undue weight on the forward-looking information or place reliance on 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.
Although the Company believes its assumptions are reasonable based on currently available information, the Company cautions readers that its assumptions regarding future events may ultimately prove to be inaccurate as they are subject to risks and uncertainties, many of which are beyond the Company’s control and affect the Company and its business. When relying on the Company’s forward-looking statements and information to make decisions, investors and other parties should carefully consider the factors set forth above and other uncertainties and potential events. The Company assumes that the above-mentioned important factors 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.
Except as required by 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
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