TORONTO, Nov. 5, 2024 /CNW/ - SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company") today announced that it has finalized a wind-down plan for the Company and its assets and subsidiaries with its secured lenders (the "Lenders") under the Company's credit and guaranty agreement dated November 15, 2021, as amended (the "Credit Agreement"), given that the Company does not anticipate being able to repay amounts owing under the Credit Agreement at the upcoming maturity date of November 15, 2024.
As part of the wind-down plan, it is anticipated that the following steps will be undertaken by the Company and its subsidiaries in the near term: (i) the disposition of the Company's assets in Colorado by way of a Colorado receivership proceeding involving the Company's Colorado subsidiaries; (ii) an assignment into bankruptcy of the Company pursuant to Canada'sBankruptcy and Insolvency Act (the "Bankruptcy Proceedings"); and (iii) a possible sale by the Company's Vermont subsidiaries of their respective assets, followed by an assignment for the benefit of creditors in respect of any remaining assets, all subject to local Vermont regulatory approval.
Despite the best efforts of the Company, it has been unable to attract a viable transaction to restructure its debts and/or seek any sales of the Company or of its assets in the normal course. The difficult decision to approve and enter into the wind-down plan was made after careful consideration of the current financial condition of the Company and its subsidiaries, the Company's inability to pay its liabilities as they become due, and negotiations between the Company and the Lenders. The Company anticipates that B. Riley Farber Inc. will be appointed as the trustee under the Bankruptcy Proceedings.
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. Learn more at slangww.com.
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 upcoming maturity date under the Company's credit and guaranty agreement dated November 15, 2021, as amended, and the inability of the Company to repay amounts owing under the Credit Agreement, the transactions forming part of the wind-down plan of the Company and its subsidiaries including the liquidation of the Company's operations in Colorado by way of a Colorado receivership proceeding, the Bankruptcy Proceedings, and a possible sale by the Company's Vermont subsidiaries of their respective 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 regulatory, 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 inability to pay amounts owing under the Credit Agreement, the Company being unable to complete some or all aspects of the wind-down plan in a manner acceptable to the Lenders, the future actions and cooperation 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
Neither the Canadian Securities Exchange nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this release.
SOURCE SLANG Worldwide Inc
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